Cocoon Capital, a Singapore-based early-stage venture capital firms, has announced the first close of its third fund, Cocoon Capital Fund III, securing $30 million in commitments towards a target of $50 million.

The new fund will continue the firm’s high-conviction strategy of backing the region’s most promising enterprise and deep tech startups from the earliest stages, combining capital with intensive hands-on support to help them scale globally, the firm said in a statement on Wednesday.

The fund will continue to target pre-seed and seed-stage investments in business to business (B2B) software and deep tech startups across Southeast Asia, while selectively exploring opportunities across broader Asia and Australia.

Cocoon plans to invest in 20 companies over the next four to five years.

Roughly 55 percent of the fund is reserved for follow-on investments up to Series A, allowing the firm to maintain support for its strongest companies as they scale.

“We chose to avoid chasing the hype around consumer tech and the latest buzzwords like AI and blockchain,” said Michael Blakey, Managing Partner at Cocoon Capital.

“Instead, we are focusing on overlooked opportunities – founders solving hard, unsexy problems in enterprise infrastructure, advanced manufacturing, robotics, and healthcare,

“Fund III doubles down on that strategy. We’re not looking to build the biggest portfolio, we’re looking to build the most resilient and transformational one,” he added.

According to the statement, Cocoon quietly built a track record of backing exceptional founders in overlooked markets across Southeast Asia, always leading seed rounds before others took notice.

This disciplined approach has enabled the firm to invest in companies that are now setting the pace for Southeast Asia’s enterprise and deep tech ecosystem.

The firm’s model is distinct from traditional early-stage investors. It leads every deal, takes a board seat, and implements a comprehensive 10-step diligence process that evaluates governance, technical depth, founder aptitude, and product potential even at the seed stage.

Its post-investment platform, known as Cocoon Academy, provides founders with access to governance playbooks, financial fundamentals, personal coaching, and a network of domain experts and follow-on investors.

With a disciplined pace of up to five investments a year, the team remains deeply engaged with every portfolio company.

The firm’s Fund I and Fund II are actively returning capital to investors and achieving a leading distributed to paid-in capital (DPI) in the region.

“The digital transformation of traditional industries in Southeast Asia is still in its infancy,” said Carol Cheung, Partner at Cocoon Capital.

“We are especially excited about backing founders using technology to modernize sectors long underserved by innovation – whether that’s to optimize industrial processes, combat climate change, improve healthcare outcomes, or reshape financial infrastructure,

“These are long-term problems that require long-term partnerships, and that’s what Cocoon is built for,” she added.

With its portfolio companies now emerging as leaders in enterprise and deep tech, Cocoon’s investment continues to validate its thesis.

Deep tech companies, such as Aprisium, which enables micron-level industrial contamination detection, and Augmentus, an industrial no-code robotics reprogramming platform now being used by leading manufacturers worldwide, exemplify how local startups are building globally competitive solutions.

Other investments include TransTRACK, a fleet optimization and logistics platform; BuyMed, one of Vietnam’s leading digital pharmaceutical distributors; and Shomvob, a Bangladesh-based job-tech platform improving access to employment and embedded financial services.

“These founders aren’t just building regional plays. They’re solving universal problems with Southeast Asia as their launchpad,

“Whether it’s reducing emissions from manufacturing or improving access to healthcare, these companies are positioning themselves to scale globally from day one,” said Zongxi Sia, Investment Director.

It is noted that Fund III’s first close of more than half of the target includes a significant number of returning limited partners (LPs), many of whom have increased their commitments, as well as new LPs from across Asia, Europe, and North America. Investors include institutional capital providers, successful founders, and family offices.

The strong number of returning investors underscores continued confidence in Cocoon’s disciplined, high-engagement model and its track record of generating both returns and impact.

“In today’s challenging fundraising environment, it’s rare to find a firm like Cocoon,

“Their ability to identify and nurture deeply technical companies solving critical challenges, and to actually deliver real cash returns, makes it an easy decision to continue supporting them. LPs have seen Cocoon’s exit strategy work, with DPI achieved across multiple funds,” said Gregoire Baudin, a returning investor.

“We’re building a fund that delivers more than returns. We’re helping build companies that matter – companies that survive downturns, reshape industries, and set new standards for what innovation in this region can achieve,” he added.

Cocoon Capital Fund III will remain open to new commitments until its final close, targeting $50 million in total capital.

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