Facebook co-founder's B Capital closes second fund at US$820m

B CAPITAL Group has closed its US$820 million second fund to invest in growth-stage startups, bringing the firm's total assets under management to US$1.44 billion.

The firm, founded by Facebook co-founder Eduardo Saverin and former Bain executive Raj Ganguly, has a portfolio of nearly 30 companies in Asia, Europe and the US. Its South-east Asia startups include insurtech firm CXA Group, logistics provider Ninja Van and Indonesian coffee chain Kopi Kenangan.

B Capital typically invests between US$10 million and US$60 million in companies at the Series B, C and D stages. The firm was represented by Ropes & Gray LLP in the recent fund-raising.

B Capital's US$360 million first fund was announced in February 2018. B Capital's partners were among the larger limited partners (LPs) in the first fund, while management consulting firm Boston Consulting Group was one of the fund's anchor LPs.

It recently announced investments in new companies including Synack, a California-based, crowd-sourced cyber security testing platform, and Khatabook, a Bangalore-based startup that digitises local businesses through book-keeping and online payments.

Each investment reflects a global trend the firm is tracking as the global impacts of Covid-19 are realised, said B Capital. For example, Synack's approach provides a flexible and responsive way for companies to protect critical assets and technologies that complement decentralised workplaces; Khatabook addresses the large community of small and mid-sized businesses that need access to enterprise-grade technologies.

"Although technology is already embedded in nearly every sector and aspect of daily life, the last three months show us there are still extensive unmet needs when it comes to digitisation,” said Mr Ganguly, B Capital's managing partner.

Kabir Narang, general partner and co-head of Asia at B Capital, said Asia is leading the world in digital innovation and is a mobile-first economy.

"As a global tech investor, we have the benefit of evaluating patterns and business models across the world. We are looking to back founders with a global-first mindset and which are leveraging technology to transform massive industries like healthcare, education, transport and financial services."

The company has more than doubled the size of its global team over the past year, bringing on several new partners and senior leaders to its offices in San Francisco, Los Angeles, New York and Singapore.

It also added key roles in areas such as investing, operations and the company's platform team, which provides support to portfolio companies for strategy and operations, business development and corporate partnerships, talent acquisition and capital formation.