AC Ventures closes its new $210M Indonesia-focused fund

In the course of a protracted funding winter, AC Ventures’ newest information will give Southeast Asian startups hope.

The Jakarta, Indonesia–primarily based enterprise agency introduced in the present day it has raised $210 million, ending the ultimate shut on its fifth fund, referred to as ACV Fund V. Restricted companions embody the World’s Financial institution’s IFC and traders from the USA, the Center East and North Asia. Greater than 50% of the fund got here from returning LPs and institutional capital makes up over 90% of its complete.

AC Ventures has already began investing from Fund V in startups like Indonesian electrical automobile maker MAKA Motors and sustainable farming startup Koltiva. The agency now has over $500 million in property beneath administration throughout its 5 funds. Fund V will add round 25 firms to AC Ventures’ present portfolio of 120 startups. Its verify measurement will vary between $2 million and $5 million however will depend on funding alternatives. For instance, startups which can be rising rapidly and align with AC Ventures’ influence objectives may get a verify of round $20 million to $30 million.

When requested what elevating Fund V was like through the ongoing funding slowing down, co-founder and managing accomplice Adrian Li tells TechCrunch “2023 was a challenging time for venture and technology businesses in the context of fundraising, perhaps one of the toughest in the past decade.” However, AC Ventures discovered new and returning restricted companions who noticed the identical upside in Indonesia and Southeast Asia because it oes.

“Our limited partners share a firm belief that challenging times often yield the best investment opportunities,” Li says. “We have strong confidence that our latest fund will prove to be one of the best vintages, thanks to Indonesia’s ongoing, long-term demographic trends and robust economic fundamentals.” He provides that over the previous 12 months, the AC Ventures staff has met extra high-quality groups that prioritize profitability and can be found for funding at good valuations than prior to now.

AC Ventures invests throughout Southeast Asia, however Indonesia is on the high of its funding technique as a result of the nation represents 40% of the area’s financial system. Jakarta’s financial system is anticipated to develop to $360 billion by 2030 and the nation has pro-investment insurance policies, together with initiatives and reforms to make its digital financial system stronger. AC Ventures co-founder and managing accomplice Michael Soerijadji says Indonesia’s financial development is pushed largely by personal consumption, plus manufacturing, providers and exports.

For Fund V, Li stated the agency is very curious about fintech, e-commerce, well being tech, MSME enablement and local weather. The staff can also be excited by startups that deal with customers in areas like on-line retail, shopper providers and consumption upgrades as digital adoption continues to develop.

“We believe there’s substantial business potential that can tap into these changing patterns and offer unique, value-driven solutions to Indonesian consumers which can not only displace incumbents but drive new markets as well,” Li says.

AC Ventures works with its startups by supporting their enterprise improvement and strategic partnerships, giving them recommendation on discovering expertise, authorities relations, monetary planning and fundraising. It additionally advises them on advertising, PR and ESG.

Certainly one of AC Ventures’ priorities is investing in companies which have excessive environmental and social impacts. It says that its third fund, Fund III, had an general influence ratio of +37% as measured by Finland’s The Upright Undertaking, placing it above the Nasdaq Small Cap Index common of +29%. Managing accomplice Helen Wong says that when AC Ventures appears at startups, it runs baseline assessments throughout 4 areas: setting, well being, society and data.

It additionally strongly encourages gender parity. Fifty % of its management are ladies, and in its portfolio, 41% of C-level leaders are additionally ladies. Wong says AC Ventures is a signatory of the UN’s Ladies’s Empowerment Ideas and IFC’s Invest2Equal program. It encourages its firms to take an inclusive method to hiring and growing management and has hosted occasions with LPs like IFC to facilitate networking and mentorship for feminine founders.

“Showcasing the success stories of female-led startups in our portfolio is another key aspect,” she says. “It sets powerful examples for others to follow.”