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News - July 8, 2021

Magic Fund raises $30m for second fund, picks Payfazz CEO as partner

Magic Fund, a global VC fund managed by a group of startup founders, announced it has raised US$30 million for its Fund II.

It counts Y Combinator’s Michael Seibel, American venture capitalist Tim Draper, and Ace & Company as its limited partners. Recently, it also brought on Payfazz chief executive Hendra Kwik as general partner for Southeast Asia, who joins Oxy2 founder Elvis Zhang.

A third of the fund was contributed by its general partners, the company said.

Founded in 2017, Magic Fund recruits founders that are experts in various geographies and industries to become its partners. According to Kwik, it has no specific vertical or sector that it wants to target. “We only want to help other fellow founders who have built great products but have difficulty in raising money,” he told Tech in Asia.

Through its first fund, Magic Fund has invested in 70 companies, including Indonesian fintech firm Payfazz, Vietnamese property financing company Homebase, and Hong Kong-based ecommerce startup Peeba. In India, it has invested in management tool FieldProxy and insurance firm Bimaplan.

From the new fund, Magic Fund plans to make at least five investments per year in Southeast Asia, with an average check size of US$300,000 per deal.

Aside from his role at Magic Fund, Payfazz’s Kwik has also started a multi-million fund called Number Capital. It counts Payfazz, logistic startup Shipper, edtech firm Pahamify, and biometric verification tool Verihubs as its portfolio firms.

“I started it when I had almost run out of money building Payfazz . [This was] before we joined Y Combinator. I decided to use my own savings to keep the operation running. From that experience, I learned that sometimes, great founders can’t continue to build their product because they can’t raise funding, and I want to help them through this fund,” Kwik explains.

However, he adds that his main concentration right now is still being the chief executive of Payfazz.