Cocoon Capital Raises Over Half of Its USD 50M Fund III Backing High-Performing Enterprise and Deep Tech Startups

LONDON, April 30, 2025 /PRNewswire/ -- Cocoon Capital, one of Southeast Asia's top-performing early-stage venture capital firms, announces the first close of its third fund, securing USD 30 million towards a USD 50 million target. Fund III continues Cocoon's strategy of investing in high-conviction early-stage, enterprise and deep tech startups in overlooked but critical sectors across Southeast Asia.

Cocoon's hands-on, founder-first approach aims to build not the largest portfolio, but the most resilient and transformational. The fund will target 20 pre-seed and seed-stage investments, with ~55% of capital reserved for follow-ons to sustain support for its strongest companies.

"We're not chasing buzzwords," said Michael Blakey, Managing Partner at Cocoon Capital. "We back founders solving hard, often unsexy problems, whether it's modernising manufacturing, healthcare, or financial infrastructure."

Proven Track Record, Disciplined Strategy

In a region where investor returns are hard to come by, Cocoon Capital's performance stands out. Fund I and Fund II are actively returning capital to investors and achieving leading Distributed to Paid-In Capital (DPI) in the region. According to data insights firm Alternatives.pe, the second fund ranks among the top three performing VC funds in Southeast Asia by Internal Rate of Return (IRR). Cocoon's track record of achieving DPI across all of its funds, clearly demonstrates its winning strategy of building businesses from Southeast Asia and exiting them globally.

Deep Engagement at Every Stage

Cocoon leads every seed round, takes a board seat, and applies a 10-step due diligence framework covering governance, technical depth, and founder aptitude. Post-investment, founders gain access to Cocoon Academy—a platform offering governance playbooks, financial fundamentals, coaching, and a curated network of domain experts and follow-on investors.

With a target of only five investments per year, the team is deeply engaged with each portfolio company, providing not just capital, but true partnership and support.

Focused on Industrial Transformation

"The digital transformation of Southeast Asia's traditional industries is still in its infancy," said Carol Cheung, Partner at Cocoon. "We're backing founders modernising sectors underserved by innovation—those solving long-term challenges that require long-term capital and commitment."

Portfolio companies reflect this vision. Aprisium enables micron-level industrial contamination detection. Augmentus, a no-code robotics platform, is used by global manufacturers. Others include BuyMed (Vietnam's leading B2B pharmaceutical distributor), TransTRACK (fleet optimisation), and Shomvob (Bangladesh-based job-tech platform with embedded fintech).

"These are not regional plays—they're solving universal challenges, with Southeast Asia as their launchpad to global markets," added Zongxi Sia, Investment Director.

Strong LP Support and Global Backing

Fund III's first close includes a strong base of returning limited partners (LPs)—many increasing commitments—and new backers from Asia, Europe, and North America, including institutional investors, successful founders, and family offices.

"In today's environment, finding a fund like Cocoon is rare," said Gregoire Baudin, a returning LP. "Their focus on deeply technical, transformational companies and their proven ability to achieve exits made it an easy decision to continue supporting them."

Building Companies That Matter

"We're not just delivering returns," added Blakey. "We're helping build companies that survive downturns, redefine industries, and put Southeast Asia on the global innovation map."

Cocoon Capital Fund III remains open to new commitments, with a final close targeting USD 50 million.

About Cocoon Capital®
Cocoon Capital® is a Singapore-based VC investing in early-stage enterprise software and deep tech startups across Southeast Asia. Founded in 2016, Cocoon has over USD 90 million assets under management. With its "Dare to Change™" ethos, Cocoon leads early and works hands-on with founders. www.cocooncap.com

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