ADB ventures raises $50 million, exceeding fund capitalization target
ADB Ventures was established in January to support and invest in technology-driven businesses
ISLAMABAD (Web Desk) – The Asian Development Bank (ADB) announced that ADB Ventures, its new impact investment platform, will soon commence operations after successfully raising the equivalent of US $ 50 million from multilateral and bilateral development partners and exceeding its first fund close target.
The first investors in the platform’s inaugural fund are Finland’s Ministry for Foreign Affairs, the Clean Technology Fund, the Nordic Development Fund, and the Republic of Korea’s Ministry of Economy and Finance.
ADB Ventures was established in January this year to support and invest in technology-driven businesses with significant potential to scale and deliver impact, while helping ADB’s developing member countries to achieve the Sustainable Development Goals.
Its inaugural ADB Ventures Investment Fund 1 has a 17-year fund life and supports early-stage and growth-stage cleantech, agricultural technology, fintech, and health technology businesses. Its focus will be on companies with solutions that can address climate change and empower women, said a statement issued by the bank on Monday.
Finland’s Minister for Development Cooperation and Foreign Trade Ville Skinnari said: “ADB Ventures underlines Finland’s longstanding support for clean technology investments in emerging markets. It provides a new mechanism to leverage best-in-class clean technologies, including many from the Nordics, for climate and gender impact.”
Nordic Development Fund Manager Aleksi Lumijärvi said: “Nordic Development Fund is pleased to expand our Asian Development Bank partnership to private sector operations. We have supported this innovative facility from the early concept design phase because we believe it will unlock exciting new avenues for progress on climate, gender, and the Sustainable Development Goals.”
Director General Il Young Park from the Development Finance Bureau of the Republic of Korea’s Ministry of Economy and Finance said, “The Government of the Republic of Korea has developed a virtuous cycle of venture ecosystems as the core axis of innovative growth.
I hope that the launch of ADB Ventures will also lead the region to achieve innovative and sustainable growth by enhancing partnerships with innovative players in the Republic of Korea.”
ADB Director General for Private Sector Operations Mike Barrow said, “These commitments by some of the world’s most forward-thinking development donors will be catalytic in achieving ADB’s vision to convene one of the region’s largest impact venture platforms.
As the world battles the COVID-19 pandemic, we believe that our patient-capital venture fund will be a timely shot in the arm for early-stage impact investment in Asia and the Pacific.”
