In the middle of a long financial winter, AC ProjectsThe latest news will give Southeast Asian startups hope.
The Jakarta, Indonesia-based venture firm announced today that it has raised $210 million, bringing the final close to its fifth fund, called ACV Fund V. Limited partners include the World Bank’s International Finance Corporation and investors from the United States, the Middle East and North Asia. . More than 50% of the fund came from LPs and institutional capital makes up more than 90% of its total.
AC Ventures has already begun investing from Fund V in startups such as Indonesian electric car maker MAKA Motors and sustainable agriculture startup Koltiva. The firm now has more than $500 million in assets under management across its five funds. Fund V will add about 25 companies to AC Ventures’ existing portfolio of 120 startups. The size of his checks will range from $2 million to $5 million, but depends on investment opportunities. For example, startups that grow quickly and align with AC Ventures’ impact goals may receive a check for $20 million to $30 million.
When asked what fundraising for Fund V will look like during an ongoing funding slowdown, co-founder and managing partner Adrian Li told TechCrunch: “2023 has been a challenging time for venture and technology companies in the context of fundraising, perhaps one of the most difficult times in the past.” Hold.” AC Ventures, on the other hand, found new and returning limited partners who saw the same upside in Indonesia and Southeast Asia as they do now.
“Our limited partners share a firm belief that difficult times often lead to the best investment opportunities,” Lee says. “We have strong confidence that our latest fund will prove to be one of the best, thanks to Indonesia’s ongoing and long-term demographic trends and strong economic fundamentals.” He adds that over the past year, the AC Ventures team has met a greater number of high-quality teams that prioritize profitability and are available to invest at good valuations than in the past.
AC Ventures invests across Southeast Asia, but Indonesia is at the forefront of its investment strategy because the country accounts for 40% of the region’s economy. Jakarta’s economy is expected to grow to $360 billion by 2030, and the country has pro-investment policies, including initiatives and reforms to make its digital economy stronger. Indonesia’s economic growth is largely driven by private consumption, as well as manufacturing, services and exports, says Michael Surijadji, co-founder and managing partner of AC Ventures.
For the fifth fund, Lee said the company is particularly interested in fintech, e-commerce, healthtech, SME empowerment and climate. The team is also excited about consumer-facing startups in areas such as online retail, consumer services, and consumer modernization as digital adoption continues to grow.
“We believe there is great business potential that can capitalize on these changing patterns and offer unique value-based solutions to Indonesian consumers that can not only displace incumbents, but also drive new markets,” Lee says.
AC Ventures works with its startups by supporting their business development and strategic partnerships, giving them advice on finding talent, government relations, financial planning and fundraising. It also provides advice on marketing, public relations, environment and ESG.
One of AC Ventures’ priorities is to invest in companies that have high environmental and social impacts. It says its third fund, Fund III, had an overall impact ratio of +37% as measured by the Upright Project in Finland, putting it above the Nasdaq Small Cap Index average of +29%. When AC Ventures looks at startups, it makes key assessments across four areas: environment, health, community and knowledge, says managing partner Helen Wong.
It also strongly promotes gender equality. Fifty percent of its leadership is women, and in its portfolio, 41% of executive-level leaders are also women. Wong says AC Ventures is a signatory to the UN Women’s Empowerment Principles and the International Finance Corporation’s Invest2Equal programme. It encourages its companies to take a comprehensive approach to recruiting and developing leadership, and has hosted events with limited partners such as the International Finance Corporation to facilitate networking and mentoring for organizations.
“Featuring the success stories of women-led startups in our portfolio is another key aspect,” she says. “He sets powerful examples for others to follow.”