In a climate marked by economic turbulence and tightening capital flows, Headline Asia has defied the odds with the successful close of its $145 million Fund V. This latest fund signals rare momentum in an otherwise chilled venture capital environment, especially across the Asia-Pacific startup scene.
The Tokyo- and Taipei-based firm is bucking the region’s VC slowdown, driven by high interest rates, tighter liquidity, and a more cautious outlook from limited partners. Described by Headline Asia co-founder Akio Tanaka as a “cyclical winter,” the current downturn has made capital harder to secure, particularly for riskier early-stage startups.
Yet even in this climate, Headline managed to complete one of its largest funds to date—albeit slightly under its original $180 million target. Fund V is focused on early-stage companies, especially those spearheading digital transformation and expanding across borders in Japan, Taiwan, and Southeast Asia. Selective investments will also be made in South Korea. Headline’s typical check size ranges from $1 million to $5 million, with a core focus on sectors like e-commerce, logistics, fintech, intellectual property, and AI.
Backing Global-Minded Founders in a Conservative Region
Headline Asia’s strategy stands apart from many regional investors who, amid current headwinds, favor safe bets over bold tech plays. The firm isn’t shying away from high-growth opportunities—it’s leaning into them. Tanaka emphasized that early-stage deals still present the best chances for outsized returns, particularly in a subdued exit environment where later-stage valuations have taken a hit.
Already, Fund V has backed 17 companies, including Japanese ride-hailing startup Newmo; Jenfi, a Singapore-based provider of revenue-based financing for digital-first businesses; and Pi-xcels, a Tokyo- and Singapore-headquartered firm building NFC-enabled receipt technology for merchants.
Headline’s fund is backed by major public and private stakeholders including the Japan Investment Corporation, Taiwan’s National Development Fund, Korea Venture Investment Corporation, and SME Support Japan—underscoring strong regional support for innovation despite macroeconomic caution.
The firm is particularly bullish on Japan. While many Japanese startups historically focused on small local IPOs, Tanaka sees increasing ambition among founders to scale globally. He noted a shift from “low-hanging fruit” listings to bigger international plays across Asia.
Global Network, Regional Focus
Headline Asia is part of the broader Headline VC network, which spans the U.S., Europe, and Latin America and manages approximately $4 billion in assets. Since its founding in 2008, Headline Asia alone has backed over 100 startups and now oversees around $420 million across five funds. Its lean team of 10 investors operates across Tokyo, Taipei, and Singapore, giving it deep visibility into regional trends and founder pipelines.
The fund’s close arrives alongside a series of other notable Asia-focused raises: Antler’s $72 million Southeast Asia fund in August, MindWorks Capital’s $220 million pan-Asia fund in October, and Intudo’s $125 million in Indonesia across two vehicles in November. These efforts suggest that while the VC landscape is cautious, strategic capital is still flowing—especially for managers with a strong local presence and conviction in emerging markets.
As liquidity remains tight and exits elusive, firms like Headline Asia are betting that bold early-stage bets made now will power the next generation of global startups from Asia.
