JG Summit Holdings, a large conglomerate in the Philippines, has launched a US$50 million fund to target startups that operate in sectors similar to its current holdings, according to Esquire.

Called JG Digital Equity Ventures (JG DEV) the venture fund is part of an effort to “build new businesses beyond its core”. It wants to invest in companies that will either supplement or disrupt its current holdings.

The company plans to invest in Series A or Series B rounds. The logic is to invest in companies on the precipice of scale. It anticipates cheque sizes that range from US$1 million to US$10 million.

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An interesting part of the fund is the focus on startups that work in similar areas as its subsidiary companies. This could include real estate, retail and airlines (Cebu Pacific is one famous JG Summit company). It also plans to target startups in finance, consumer services, new media, logistics and healthcare.

JG Summit has already invested in the startup sector, albeit at a later stage. It invested in Sea Group back in 2017 and a Chinese fintech firm called Oriente which owns Cashalo. JG DEV will be separated from the investments made by the parent corporation.

Growsari and Snapcart are also portfolio companies.

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Photo by Thor Alvis on Unsplash