ADB Ventures Investment Fund 1
What is the fund?
ADB Ventures Investment Fund 1 (Fund 1) is a multi-donor trust fund that reached final close at $60 million in September 2020. It will invest in early-stage companies with technology enabled solutions that contribute to multiple Sustainable Development Goals (SDGs), with a focus on climate and gender impact. The fund has a 17-year fund life for holding periods of up to 10 years to maximize the opportunities for success of an early-stage company requiring more patient capital.
What are the priorities?
Fund 1 will contribute to multiple SDGs by applying climate (80% of investments) and gender (75% of investments) impact investment lens, primary targeting ADB’s developing member countries (DMCs) in Southeast Asia and South Asia. Fund 1 will focus on clean technology, agricultural technology, inclusive financial technology, and health technology. ADB Ventures aims to mobilize at least $360 million private capital for early-stage companies through coinvestments.
What kind of activities are eligible?
Fund 1 plans to make at least 15 investments over its life ranging in investment size from $100,000 to $4 million, primarily in the form of equity and quasi-equity. 50% of funding is reserved for follow-on investments.
Who is eligible to receive financing?
All DMCs are eligible for ADB Ventures support. Since ADB Ventures is a non-sovereign platform managed by ADB’s Private Sector Operations Department, only private sector companies or entities are eligible for assistance. Companies can be domiciled globally, however, the impact focus must be in a DMC.
Who supports the fund?
Ministry of Foreign Affairs Finland, Clean Technology Fund, Nordic Development Fund, and the Ministry of Economy and Finance Republic of Korea. The Department of Foreign Affairs and Trade Australia, Clean Technology Fund and Nordic Development Fund contributed to project preparation.