German development finance institution DEG is proposing an additional $10 million loan to JC Growth Credit Fund 1 LP, a venture debt vehicle managed by Singapore-based investment firm January Capital, according to a disclosure seen by CrowdFund Insider.
The proposed financing would top up an earlier $20 million unsecured, senior long-term loan from DEG to the fund, which was fully disbursed in March 2026.
The additional capital will be used to provide venture debt to growth-stage technology companies in DEG partner countries across Southeast Asia, according to information published by the German development lender.
JC Growth Credit Fund 1 was established to provide credit to growth-stage technology businesses, offering companies an alternative source of capital at a time when access to traditional equity funding has become more selective.
DEG said venture debt remains underserved in Southeast Asia, with only a limited number of dedicated providers operating in the market.
The financing can give technology companies additional liquidity without requiring founders and existing shareholders to accept the same level of equity dilution associated with another fundraising round.
The proposed top-up would bring DEG’s total financing for the fund to $30 million.
DEG initially committed €20 million, then equivalent to about $23 million, to JC Growth Credit Fund 1 in 2025.
U.S. International Development Finance Corporation records also show a $20 million commitment to the vehicle, while Japan’s SBI Holdings announced an investment in the fund through its Singapore-based subsidiary SBI APAC Credit Capital in December 2025.
SBI described the investment as its first private credit transaction in Asia under a global private credit initiative launched in October 2025.
The participation of development finance institutions and other institutional investors highlights growing interest in venture debt and private credit as alternative sources of capital for Asian technology companies.
Unlike venture capital, venture debt allows companies to raise financing without immediately issuing additional equity, although borrowers must meet repayment obligations and typically face tighter financial and operating conditions.
JC Growth Credit Fund 1 targets sponsor-backed, growth-stage technology companies and provides credit designed to complement rather than replace equity financing.
For Southeast Asian startups, the expansion of venture debt could be particularly relevant as the region adjusts to a more disciplined fundraising environment following years of abundant venture capital.
Companies that have already raised institutional equity but need additional capital to extend their runway, finance expansion or bridge the period before another equity round can potentially use venture debt to limit further shareholder dilution.
DEG said the investment is also expected to support job creation and the development of venture debt as a financing product in Southeast Asia.
The lender will require the fund to comply with its environmental and social standards and is providing support to incorporate those requirements into the fund’s investment guidelines and internal processes.