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The Asian Development Bank has established a new venture capital division to support and invest in start-ups in Asia and the Pacific, called ADB Ventures.

The new arm will target start-ups and female-led projects developing solutions that would help the region to achieve climate change goals set under the Paris Agreement’s Sustainable Development Goals by 2030.

The project will run for 17 years as from the second quarter of 2020 utilising funds secured from the Nordic Development Fund, Climate Investments Funds and the Government of Australia.

ADB Ventures will mobilise private-sector capital through co-investing with private sector investors and will operate under multiple divisions including:

  • ADB Ventures Investment Fund 1 – Will provide technical assistance programmes that will support impact technology startups through two main activities.
  • ADB Ventures SEED is a grant programme to validate and de-risk technology pilots and promote expansion into emerging markets that startup companies might otherwise not prioritise.
  • ADB Venture Lab is a suite of corporate innovation programmes implemented in partnership with industry and leading accelerators for startups.

Mike Barrow, ADB director general for Private Sector Operations, said: “Our vision is for ADB Ventures to become the region’s largest impact technology platform, crowding in more than $1 billion of risk capital to achieve the SDGs by 2030.”

“This region is brimming with technology solutions to conserve energy, reduce waste, fight climate change, and deliver public services effectively.

“ADB Ventures will help bring these solutions to market by leveraging our extensive operational networks and filling the risk capital gap facing innovative early-stage companies in developing Asia and the Pacific, particularly smaller and frontier markets, capital into cleantech, fintech, agricultural technology, and health technology solutions.”

The energy transition is a hot topic disrupting the utility industry in Asia and will be a key focus at Enlit Asia which takes place in Jakarta, Indonesia from 23-25 March. For more details click here.