A second fund will be used for funding startup ventures in Southeast Asia by 500 Startups, the venture firm that successfully backed ride-hailing startup Grab.

Managing Partner Khailee Ng plans to invest in 200 seed-stage companies through the $50 million Durian II fund. In a way that it did when it first debuted in June 2014, the new fund would be anchored by Malaysia Venture Capital Management Bhd., the country’s largest venture capital firm.

According to CB Insights, 500 Startups has been made the most active early-stage investor in the region, participating in more than 26 percent of deals from its launch through to May 2016, by the first Durian fund, named after the stinky tropical fruit popular in Southeast Asia. After being an early backer of the app that is now said to be valued at more than $3 billion, Ng is searching for the next Grab.

“We de-risk by spreading across many companies and get a higher probability to catch a unicorn. So far that strategy has proven in Southeast Asia and we are going to continue with that strategy,” Ng, 32, said in an interview.

In addition to the Indonesian shoe company Bro.do, online marketplaces Carousell Pte and Bukalapak.com was also among other startups that were backed by the first $25 million Durian fund. According to Ng, a total of 119 startups, a quarter of which have raised additional money while none have shut down, were backed by the earlier fund.

Ng said that one of the focuses would be local consumer brands like Bro.do, which has a cult-like following in Indonesia.

A region with rising incomes and a growing population has been chosen by 500 Startups for investing. According to a report by Google and Temasek Holdings Pte., Southeast Asia, which includes Singapore, Malaysia and Vietnam, is expected to have 480 million internet users by 2020.

Dave McClure, the founding partner of 500 Startups had started making angel investments with $300,000 he earned after his employer PayPal went public. The strategy of the founding partner was to sprinkles small amounts of money across a large number of startups. This is reflected in the present strategy of the firm.

While the funds f the firm are now dedicated to Southeast Asia, the Middle East and Latin America, McClure had started the Silicon Valley firm in 2010 and has expanded to $250 million in assets. In more than 50 countries, 500 Startups has invested in more than 1,500 companies so far.

The investment strategy is helped to be shaped by his own experience as an entrepreneur, Ng said. By the age of 30 had sold trending news site Says.com to Malaysia’s Catch Group and local daily deals site GroupsMore to Groupon Inc. and he had begun at the age of 24 by building his own internet companies.

“I’m betting on founders who will outlast their competition,” he said.

(Adapted from Bloomberg)

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