Cocoon Capital: A New Chapter in Southeast Asia's Venture Landscape
May 6, 2025, 6:25 am
Cocoon Capital is on the rise. The Singapore-based venture capital firm has recently announced the first close of its third fund, Cocoon Capital III, securing $30 million towards a target of $50 million. This marks a significant milestone for the firm, which has carved a niche in the early-stage investment landscape of Southeast Asia.
Founded in 2016 by Michael Blakey and Klippgen, Cocoon Capital has consistently focused on pre-seed and seed-stage investments. The firm’s strategy is clear: target B2B software and deep tech startups that tackle complex challenges. In a world often enamored with flashy consumer tech, Cocoon chooses to invest in the unsung heroes of the tech ecosystem.
The firm plans to invest in 20 companies over the next four to five years. About 55% of the fund is earmarked for follow-on investments, ensuring that the strongest companies receive continued support. This approach is not just about numbers; it’s about building a resilient and transformational portfolio.
Cocoon Capital’s past funds have performed well. Fund I and Fund II are actively returning capital to investors, achieving a leading Distributed to Paid-In Capital (DPI) in the region. This track record speaks volumes. In an environment where investor returns can be elusive, Cocoon stands out.
The firm’s hands-on, founder-first approach sets it apart. Cocoon leads every seed round, takes a board seat, and implements a rigorous 10-step due diligence framework. This framework covers governance, technical depth, and founder aptitude. After investment, founders gain access to Cocoon Academy, a platform that offers governance playbooks, financial fundamentals, coaching, and a curated network of domain experts.
Cocoon Capital is not just about providing capital; it’s about fostering partnerships. The firm is deeply engaged with each portfolio company, limiting its investments to about five per year. This ensures that the team can provide meaningful support and guidance.
The portfolio reflects Cocoon’s vision. Companies like Aprisium, which specializes in industrial contamination detection, and Augmentus, a no-code robotics platform, exemplify the firm’s focus on deep tech. Other notable investments include BuyMed, Vietnam’s leading B2B pharmaceutical distributor, TransTRACK, a fleet optimization platform, and Shomvob, a job-tech platform from Bangladesh that integrates fintech solutions.
Cocoon Capital’s latest fund has attracted a strong base of returning limited partners (LPs), many of whom have increased their commitments. New backers from Asia, Europe, and North America have also joined the fold, including institutional investors, successful founders, and family offices. This diverse support base underscores the confidence in Cocoon’s strategy and vision.
The firm’s focus on solving hard, often unsexy problems is refreshing. In a world chasing buzzwords, Cocoon is committed to backing founders who are modernizing industries like manufacturing, healthcare, and financial infrastructure. This long-term commitment is crucial in a region where digital transformation is still in its infancy.
Southeast Asia is a launchpad for global markets. Cocoon Capital recognizes this potential. The firm is not just looking at regional plays; it aims to support companies that address universal challenges. This perspective positions Cocoon as a key player in the global innovation landscape.
In today’s venture capital environment, finding a fund like Cocoon is rare. The firm’s focus on deeply technical, transformational companies, combined with its proven ability to achieve exits, makes it an attractive option for investors.
Cocoon Capital is more than just a venture capital firm. It is a catalyst for change in Southeast Asia. By investing in the right companies and providing the necessary support, Cocoon is helping to redefine industries and put the region on the global innovation map.
As the firm embarks on this new chapter with Fund III, the future looks bright. Cocoon Capital is poised to continue its journey of supporting resilient startups that tackle the complex challenges of tomorrow. In a world filled with uncertainty, Cocoon stands as a beacon of hope for entrepreneurs and investors alike.
In conclusion, Cocoon Capital is not just about funding; it’s about building a legacy. The firm’s commitment to its founders and its strategic focus on deep tech and B2B software will shape the future of Southeast Asia’s venture landscape. As the firm moves forward, it will undoubtedly continue to make waves, proving that true innovation often lies beneath the surface.
Founded in 2016 by Michael Blakey and Klippgen, Cocoon Capital has consistently focused on pre-seed and seed-stage investments. The firm’s strategy is clear: target B2B software and deep tech startups that tackle complex challenges. In a world often enamored with flashy consumer tech, Cocoon chooses to invest in the unsung heroes of the tech ecosystem.
The firm plans to invest in 20 companies over the next four to five years. About 55% of the fund is earmarked for follow-on investments, ensuring that the strongest companies receive continued support. This approach is not just about numbers; it’s about building a resilient and transformational portfolio.
Cocoon Capital’s past funds have performed well. Fund I and Fund II are actively returning capital to investors, achieving a leading Distributed to Paid-In Capital (DPI) in the region. This track record speaks volumes. In an environment where investor returns can be elusive, Cocoon stands out.
The firm’s hands-on, founder-first approach sets it apart. Cocoon leads every seed round, takes a board seat, and implements a rigorous 10-step due diligence framework. This framework covers governance, technical depth, and founder aptitude. After investment, founders gain access to Cocoon Academy, a platform that offers governance playbooks, financial fundamentals, coaching, and a curated network of domain experts.
Cocoon Capital is not just about providing capital; it’s about fostering partnerships. The firm is deeply engaged with each portfolio company, limiting its investments to about five per year. This ensures that the team can provide meaningful support and guidance.
The portfolio reflects Cocoon’s vision. Companies like Aprisium, which specializes in industrial contamination detection, and Augmentus, a no-code robotics platform, exemplify the firm’s focus on deep tech. Other notable investments include BuyMed, Vietnam’s leading B2B pharmaceutical distributor, TransTRACK, a fleet optimization platform, and Shomvob, a job-tech platform from Bangladesh that integrates fintech solutions.
Cocoon Capital’s latest fund has attracted a strong base of returning limited partners (LPs), many of whom have increased their commitments. New backers from Asia, Europe, and North America have also joined the fold, including institutional investors, successful founders, and family offices. This diverse support base underscores the confidence in Cocoon’s strategy and vision.
The firm’s focus on solving hard, often unsexy problems is refreshing. In a world chasing buzzwords, Cocoon is committed to backing founders who are modernizing industries like manufacturing, healthcare, and financial infrastructure. This long-term commitment is crucial in a region where digital transformation is still in its infancy.
Southeast Asia is a launchpad for global markets. Cocoon Capital recognizes this potential. The firm is not just looking at regional plays; it aims to support companies that address universal challenges. This perspective positions Cocoon as a key player in the global innovation landscape.
In today’s venture capital environment, finding a fund like Cocoon is rare. The firm’s focus on deeply technical, transformational companies, combined with its proven ability to achieve exits, makes it an attractive option for investors.
Cocoon Capital is more than just a venture capital firm. It is a catalyst for change in Southeast Asia. By investing in the right companies and providing the necessary support, Cocoon is helping to redefine industries and put the region on the global innovation map.
As the firm embarks on this new chapter with Fund III, the future looks bright. Cocoon Capital is poised to continue its journey of supporting resilient startups that tackle the complex challenges of tomorrow. In a world filled with uncertainty, Cocoon stands as a beacon of hope for entrepreneurs and investors alike.
In conclusion, Cocoon Capital is not just about funding; it’s about building a legacy. The firm’s commitment to its founders and its strategic focus on deep tech and B2B software will shape the future of Southeast Asia’s venture landscape. As the firm moves forward, it will undoubtedly continue to make waves, proving that true innovation often lies beneath the surface.