New Wave, an investment company based in the Philippines, announced that it has signed the initial documentation with Malaysian investment firm Emissary Capital to set up a US$50 million investment fund for Southeast Asian startups.

A view of Makati, the business district of Metro Manila

Under the partnership, New Wave will invest up to US$7.5 million as a limited partner. The duo will also form a joint venture that will serve as a general partner to manage the fund.

The investment vehicle will focus on backing tech startups in Malaysia and the Philippines, according to a statement.

Based on the Global Startup Ecosystem Report 2020, Kuala Lumpur and Manila are ranked 11th and 31st, respectively, among the top emerging startup ecosystems in the world. Both countries are driven by the fintech sector as well as esports in Malaysia and ecommerce in the Philippines.

“Technology businesses today must have a regional outlook, and entrepreneurs must demonstrate an ability to scale this way. Our fund is looking to invest in Southeast Asia’s growth companies led by founders that have proved resilience and success,” said New Wave director Enrique Gonzalez.

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New Wave is a wholly owned subsidiary of online game publisher IP E-Game Ventures. It manages over US$40 million of assets and is led by Gonzalez, who is also a partner at the SB Kaikaku Fund and IP Ventures.