Convergence Ventures' founders and team with Wang Ruiping, third from the left, Chairman and Managing Partner of TDR Capital. (Pooto courtesy of Convergence Ventures)

Convergence Ventures Introduces Indonesia Porfolio in China Networking Summit

BY :MUHAMAD AL AZHARI

NOVEMBER 25, 2016

Jakarta. Convergence Ventures, a technology venture fund that invests in and accelerates early stage technology companies in Indonesia and Southeast Asia, participated in a three-day networking summit with angel investors, venture capitalists as well as government officials from across China earlier this week, it said in a statement on Friday (25/11).

The 2016 China Venture Capital Winter Summit was held in Hainan, China, on Nov. 21-23. The trip to China is part of Convergence Ventures’ program to introduce and connect a select number of its portfolio companies’ founders to domestic Chinese investors who are seeking investment opportunities outside of China's local market.

Convergence, which has so far invested in over 17 seed and early stage startups, brought along top executives under its portfolio, including Hanifah Ambadar, the co-founder and chief executive of Female Daily Network, Kaneswaran Avili, the founder and chief executive of Nida Rooms and Italo Gani, the co-founder and chief executive of Adskom.

Female Daily Network is the largest fashion and beauty online forum in Indonesia, Nida Rooms is a startup company providing web-based and mobile app booking services for budget hotel and other low-cost accommodation in South East Asia and Adskom is an advertising technology company.

Convergence Ventures, which recently closed its first $30 million fund, has been very proactive in leveraging its relationships in China.

The Indonesia-based venture-capital firm with a focus on local internet ventures has been consistently advocating Indonesia's potentials to follow on China’s footsteps in fostering its tech-startup industry, thanks to the country’s growing Internet penetration, adoption of internet purchase behavior and rising income per capita, which were similar to those of China 5-7 years ago.

The 2016 China Venture Capital Winter Summit was organized by the North America International Exchange Center (Naiec), which provides consulting services for foreign businesses interested in the Chinese market.

The two-day summit was packed with panel discussions between venture capitals, China’s government officials, entrepreneurs, and pitching sessions for more than 30 startups from China, Southeast Asia, the United States and Israel.

Right timing

Convergence’s statement cited comments from Wang Ruiping, Chairman and Managing Partner of TDR Capital, a British private equity firm headquartered in London, who was an angel investor in Ctrip, China’s largest online travel agent.

Ruiping highlighted that now is the right time for China to start sourcing for opportunities outside of local market.

Convergence, Ruiping said, sees Indonesia as a blockbuster country in Southeast Asia.

"Indonesia is the largest market in Southeast Asia. As an investor from China, from a market-size perspective, it makes sense for us who come from an already huge market to invest in Indonesia. China is moving fast and we are interested in exploring potential synergies with companies in Indonesia," Ruiping said in the statement.

Ruiping has more than 20 years of investing experience under his belt and his venture capital firm invested in Dazhong Dianping, the largest user-generated reviews and content platform for restaurants and lifestyle venues in China.

The company is reportedly now valued at more than $18 billion.

Convergence's keenness to bridge connection between Indonesia and China is driven by its enthusiasm to share experience, network and capital from the world’s most populous nation to help accelerate Southeast Asia’s growing technology landscape.

The Indonesia-focused venture capital company wants Chinese investors to explore Indonesia as investment destination and support local talent growth through know-how transfer and mentorship.

"With China’s One Belt, One Road initiative, there is a strong momentum for Chinese investors to seek opportunities in South East Asia. We see China-based investors and businesses as important partners who can bring not only capital but valuable experience for Indonesian ventures as they seek to continue to build their businesses. With our long history and relationships in China we hope to be a bridge for that to happen," Adrian Li, Managing Partner of Convergence Ventures, said.

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