Early TikTok Investor Allocates One-Third of New $1 Billion Fund for Asian Investments

Goodwater Capital, a global investment firm established in 2014, has announced that it will invest one-third of its new $1 billion fund in Asia.

The firm has historically invested about one-third of its capital in Asia and that allocation could increase in the future. 

Goodwater’s portfolio in Asia

Goodwater's portfolio in Asia includes consumer tech leaders such as Xendit, Kakao, Coupang, MoMo, and Toss, and Musical.ly, which was later acquired by ByteDance and rebranded to TikTok.

Goodwater has invested in South Korea 26 times, India 70 times, and Southeast Asia 56 times thus far.

• Xendit: A payment processing platform based in Indonesia.

• Kakao: A South Korean internet company that offers a range of services including messaging, gaming, and ride-hailing.

• Coupang: a same-day delivery service provider operating out of South Korea.

• MoMo: A Vietnamese mobile wallet and payment platform.

• Toss: A South Korean financial technology firm that provides mobile banking and payment services.

Goodwater Capital's Focus on Consumer Tech Companies

Goodwater Capital continues to focus exclusively on consumer tech companies, even as the sector grapples with post-pandemic losses.

Consumer technology is woven into the very fabric of society, extending beyond things like internet shopping and camera filters.

Due to network effects, consumer tech companies like Google, Amazon, Meta, Kakao, and Coupang are among the most lucrative tech companies in existence, despite the fact that the majority of venture-backed startups experience early losses.

Goodwater doesn't shy away from companies that aren't profitable from day one. Instead, they lean into helping them achieve market leadership and long-term profitability.

Goodwater Capital's Unique Advantage

Goodwater has a distinct edge in assisting portfolio firms in using data because of its staff of engineers and data scientists.

This is especially important in navigating the present difficult market. As investors, they must identify the eventual winners in a market since the vast majority of value accrues to the market leader, not the second or third player (e.g. Uber vs. Lyft).

A great consumer tech business, in short, provides a service that consumers just cannot live without. These days, it's hard for us to fathom living without internet banking, ride-sharing, streaming videos, and virtual healthcare.