NxtGen Capital, a Singapore-based fund of funds with a focus on early-stage investment vehicles in the US, has unveiled its first fund.
Wee Ping Goh, general partner at NxtGen Capital, wrote in a LinkedIn post that the fund, called NxtGen Capital Fund 1, aims to invest money into venture capital funds with a small fund size. The company will primarily search for funds with a size of less than US $150 million with the intention of creating a diversified portfolio of 300–400 startups.
Goh, Shihao Koh, and Sean Teo established NxtGen Capital Fund 1. They are experienced investors from firms like iGlobe Partners and KK39 Ventures.
According to Goh, the fund of fund model is especially appealing to family offices that want to invest in venture capital but lack the resources or expertise to research investment opportunities. By diversifying its bets, among other things, the strategy enables NxtGen to reduce the risks associated with venture investing, he continued.
Family offices can allocate funds to venture capital with the help of NxtGen Capital, which also provides advice on how to do so. The intention is for family offices to eventually amass sufficient knowledge and experience to invest directly in these funds.
