Investment Thesis and Strategic Focus
AFG Partners is committed to transforming financial infrastructure across Asia by investing in early to growth-stage B2B fintech and enabling technology companies. Their investment thesis is centered around several core principles:
- Sector Focus: Emphasis on B2B fintech segments such as embedded finance, capital markets infrastructure, insurtech, and CFO tech stack.
- Geographic Strategy: Targeting companies from global markets like the US, UK, Israel, and India, aiming to scale into Asia.
- Investment Stage: Typically investing at Pre-Series A to Series B/C rounds with initial checks ranging from $500,000 to $1 million.
- Co-investment Model: Prefers co-investing alongside top-tier investors, enhancing flexibility and leveraging broader networks.
- Value Addition: Provides hands-on market entry expertise, strategic partnerships, and localization for scaling across Asian markets.
AFG Partners' strategy aligns with current market trends by addressing Asia's high-growth potential and complex market dynamics. Their focus on founder-led teams with strong domain knowledge ensures solutions that solve large-scale problems for enterprise customers. AFG's approach is further differentiated by offering cross-border know-how, regulatory guidance, and business development support, making them the "growth partner of choice in Asia."
Representative portfolio companies like Brankas (SEA open banking APIs) and Aspire (SME digital banking tools) illustrate their strategic focus. Over time, AFG has adapted its thesis to leverage Asia’s underserved market for advanced financial technology, facilitating rapid adoption and scale.
AFG Partners' extensive network and advisory board, comprising Asian finance leaders, enhance deal flow, diligence, and platform support, reinforcing their position in the market. Their published thought leadership underscores the importance of adapting global best practices for the Asian context, ensuring sustainable growth and innovation.
Portfolio Composition and Sector Expertise
AFG Partners is a Singapore-based venture capital firm that specializes in early-stage investments, particularly focusing on B2B fintech and enabling technology companies seeking to scale into Asian markets. Their portfolio showcases a strategic emphasis on sector diversity and expertise, aligning closely with their investment strategy to empower companies with cross-border growth potential. ### Sector Diversity and Expertise AFG Partners' portfolio is predominantly composed of companies in the financial technology (fintech) sector. The firm demonstrates significant expertise in the following key sectors: 1. **Embedded Finance**: AFG Partners invests in solutions that incorporate financial services into non-financial platforms, enhancing user experience and streamlining operations. 2. **Capital Markets Infrastructure**: Investments in tools and platforms that modernize securities trading and market operations, facilitating more efficient and secure financial transactions. 3. **Insurtech**: Focus on technology innovations transforming the insurance sector, offering improved risk management and customer engagement solutions. These sectors reflect the firm's deep commitment to advancing technology platforms that serve enterprise needs within the financial sector. ### Notable Investments AFG Partners has made strategic investments in several pioneering companies. One notable investment is Reflectiz, a cybersecurity company that recently raised $22M to protect enterprise websites from third-party and open-source risks. Such investments underscore AFG Partners' commitment to supporting companies that enhance the security and efficiency of financial services. ### Alignment with Strategy AFG Partners' sector focus aligns with their overall investment strategy, which emphasizes early-stage investments in companies positioned for rapid growth and expansion within Asian markets. By concentrating on B2B fintech and enabling technologies, AFG Partners leverages its network to help portfolio companies capture regional markets, supporting their strategic growth trajectories. ### Portfolio Companies and Investments In conclusion, AFG Partners' portfolio reflects a robust focus on fintech and enabling technologies, strategically supporting early-stage companies poised for growth in Asia's dynamic markets. Their sector expertise and investment strategy are well-aligned, driving innovation and expansion across key financial services ecosystems.
Investment Criteria
AFG Partners is a venture capital firm based in Singapore, focusing on strategic investments in the Asia-Pacific region. The firm primarily targets **global B2B fintech and enabling technology companies** that are either expanding into Asia from global markets or scaling across the region. They invest in companies from the **Pre-Series A to Series C stages**. These companies typically demonstrate strong growth potential, proven solutions to large industry problems, and are led by founders with deep industry expertise and networks. ### Investment Criteria 1. **Stage of Investment**: AFG Partners invests in companies at the Pre-Series A through Series C stages. This allows the firm to support companies with established market validation and a clear path to scaling their operations. 2. **Typical Check Size**: While specific check sizes are not disclosed, AFG Partners operates with a fund size of $30 million as of April 2023. To get specific figures, direct contact with the firm or detailed fund documentation is recommended. 3. **Geographical Preferences**: The firm focuses on the Asia-Pacific region, particularly Southeast Asia, with operations in Singapore and Hong Kong. This geographical focus aligns with their strategy of supporting companies that are expanding into or scaling within Asia. ### Strategic Positioning AFG Partners differentiates itself by offering substantial domain expertise from leaders in the financial services and corporate sectors. This is complemented by an extensive network of relationships across the global VC ecosystem, including with financial institutions and technology companies. Their strategic support helps portfolio companies navigate market complexities and unlock growth opportunities in Asia. An example of their investment approach is reflected in companies like Reflectiz, which raised $22 million in a Series B round to enhance website security through AI-driven management solutions. ### Funding and Valuation Data AFG Partners continues to evolve its investment criteria to adapt to market changes and maintain its competitive edge in the dynamic Asia-Pacific ecosystem.Track Record and Notable Exits
AFG Partners, a Singapore-based venture capital firm, has quickly established itself as a key player in the early-stage investment landscape, particularly within the B2B fintech space across Asia. Founded in 2020, the firm focuses on Pre-Series A to Series B rounds, investing $500,000 to $1 million per company, and leverages a co-investment model to support startups in their expansion into and across Asian markets. ### Notable Exits AFG Partners has achieved significant exits, including investments in companies like **Airbnb** and **TransferWise**. These exits are part of the impressive track record of Ivan Ong, a Partner at AFG Partners, who has a robust background in investment banking and venture capital. ### Performance Metrics and KPIs While comprehensive quantitative performance data such as IRR, DPI, and MOIC specific to AFG Partners is not publicly available, their strategic impact is evident through their successful exits and the growth of their portfolio companies. The firm's strategic focus on fintech and enabling technologies is reflected in their investment choices and subsequent exits, underscoring their expertise. ### Industry Reputation AFG Partners is recognized for its strategic venture capital approach and hands-on support for fintech expansion in Asia's high-growth markets. They are known for their ability to position portfolio companies for rapid market entry and scale, demonstrating their strategic acumen and expertise. In conclusion, AFG Partners' track record showcases their strategic focus and expertise in early-stage fintech investments across Asia, supported by their notable exits and industry reputation.Team Composition and Decision-Making
Team Expertise
The AFG Partners team is composed of seasoned venture capital professionals and industry specialists dedicated to fostering B2B fintech growth in Asia. The leadership includes:
- Ron Savino – Founder and Managing Partner, based in Hong Kong, brings extensive experience in venture capital.
- Ivan Ong – Partner, with over 15 years in investment banking and VC, previously Vice President at Ace & Company, based in Singapore.
Supporting the team are domain and country specialists like Leon G. (LG), Warren Ho, André João Neiva, Tim Phillipps, and Tomas Urbanec, who enhance deal flow sourcing, diligence, and portfolio growth. The advisory board, featuring senior leaders such as Phanporn Kongyingyong and Jeff Levy, further enriches the team's expertise.
Decision-Making Process
AFG Partners employs a collaborative and flexible decision-making approach, primarily through a co-investment model. This strategy allows shared due diligence, risk distribution, and diverse strategic input, benefiting both the firm and the founders. Key elements include:
- Sector Focus: Investments target embedded finance, capital markets infrastructure, insurtech, and CFO tech stack startups aiming to scale in Asia.
- Investment Stage and Size: Typically investing in Pre-Series A to Series B rounds, with check sizes ranging from $500,000 to $1 million.
- Evaluation Criteria: Emphasis on founders with deep domain expertise and solutions for large industry problems, capable of rapid scaling in Asia.
The firm's strategic partnerships extend beyond funding, providing market entry, partnerships, and product localization support through a network of financial institutions and ecosystem players.
Firm Culture
AFG Partners' culture is rooted in collaboration and flexibility, allowing founders to retain control and flexibility over their ventures. This culture, combined with the team's extensive network and expertise, significantly influences their investment decisions, ensuring a focus on long-term growth and value creation in the dynamic Asian fintech landscape.
Value-Add Capabilities and Support
AFG Partners, a Singapore-based venture capital fund, specializes in providing targeted value-add support to B2B fintech and enabling technology companies seeking expansion into and across Asia. Their approach is deeply rooted in leveraging extensive networks, offering strategic expertise, and delivering operational assistance to facilitate growth and success for their portfolio companies.
Support Resources
AFG Partners distinguishes itself through its robust network and ecosystem access. This includes connections with global VC ecosystems, financial institutions, leading tech companies, accelerators, service providers, and government organizations. These relationships are invaluable assets for portfolio companies aiming to establish or expand operations in Asian markets. Furthermore, AFG Partners offers strategic guidance on market entry, expansion strategies, product localization, and navigating complex regulatory environments in Asia.
Examples of Support
AFG Partners actively supports its portfolio companies by facilitating introductions and partnerships across Asia. For instance, their investment in companies like Brankas, Aspire, and Sprout Solutions illustrates their commitment to helping global B2B fintech firms scale effectively. Through hands-on strategic assistance, AFG Partners aids in partnership building, identifying growth opportunities, and scaling business operations in Southeast Asia and other regional markets.
Unique Initiatives
A unique aspect of AFG Partners' value proposition is their focus on founder-first companies, investing in entrepreneurs with deep domain expertise and strong industry networks. By targeting Pre-Series A through Series C stage businesses solving large-scale industry problems, AFG Partners ensures that their support is tailored to align with the growth stage and market maturity of their portfolio companies.
Feedback from Portfolio Companies
Portfolio companies have expressed appreciation for AFG Partners' strategic insights and extensive network access, which have been pivotal in facilitating their market entry and growth. The proactive involvement of AFG Partners in addressing the challenges faced by startups entering Asian markets has been a significant contributor to their success.
Application Process and Timeline
If you are an entrepreneur seeking investment from AFG Partners, the Asia-based venture capital fund, understanding the typical application process and timeline is crucial. While specific details may vary, here is a general outline based on standard practices in the venture capital industry.
Application Steps
- Initial Contact or Submission: Entrepreneurs typically initiate contact by submitting an application through a dedicated portal or via email. Ensure your submission aligns with AFG Partners' focus on fintech startups transforming Asian financial services.
- Screening: The internal team reviews applications to determine fit with the fund's priorities. Key criteria include the startup's alignment with fintech and its potential impact on Asian financial markets.
- Interview/Assessment: Selected applicants are invited to participate in interviews. This stage involves pitching your startup, engaging in Q&A sessions, and undergoing initial due diligence on your business model, market, and team.
- Follow-up & Due Diligence: For startups that progress, a more in-depth due diligence process occurs. This includes reviewing business plans, financials, legal documentation, and conducting multiple meetings with the founders.
- Decision & Offer: Upon approval, AFG Partners will issue an investment offer with terms. The process concludes with negotiations and final agreements.
Timeline Details
The timeline from application to decision can vary based on several factors, including the completeness of your initial submission, the complexity of your business model, and scheduling availability for meetings. Typically, this process can take several weeks to a few months. Being prepared with thorough documentation and responsive communication can help expedite the timeline.
Success Tips
- Align with AFG's Focus: Clearly demonstrate how your startup addresses fintech challenges in Asia.
- Prepare Thorough Documentation: Have detailed business plans, financial projections, and legal documents ready.
- Showcase a Strong Team: Highlight the experience and qualifications of your founding team.
- Communicate Effectively: Be concise and transparent in your communications, and respond promptly to requests.
By following these guidelines and understanding the typical application process, entrepreneurs can improve their chances of securing investment from AFG Partners.
