AC Ventures closes new $210 million fund focused on Indonesia

Image credits: AC Ventures

In the midst of a long fundraising winter, the latest news from AC Ventures will give hope to startups in Southeast Asia.

The Jakarta, Indonesia-based venture firm announced today that it has raised $210 million and completed the final close of its fifth fund, called ACV Fund V. Limited partners include the World Bank’s IFC and investors from the United States, the Middle East, and North Asia. More than 50% of the funds come from returned LPs, and institutional capital accounts for more than 90% of the total.

AC Ventures has already started investing in startups from Fund V, including Indonesian electric car maker MAKA Motors and sustainable agriculture startup Koltiva. The firm currently manages more than $500 million in assets across five funds. Fund V adds approximately 25 companies to AC Ventures’ current portfolio of 120 startups. Check sizes range from $2 million to $5 million, depending on the investment opportunity. For example, a startup company that grows quickly and aligns with AC Ventures’ impact goals may receive a check of approximately $20 million to $30 million.

When asked what it was like to raise Fund V as funding continues to slump, co-founder and managing partner Adrian Lee told TechCrunch: Ten years. ” Meanwhile, AC Ventures has found new and returning limited partners in Indonesia and Southeast Asia who see similar upside.

“Our limited partners share the strong belief that the best investment opportunities often arise during difficult times,” Mr. Lee said. “We are very confident that our latest fund will be one of the best vintages due to Indonesia’s ongoing long-term demographic dynamics and solid economic fundamentals,” said AC. He added that over the past year, the Ventures team has been able to meet high-quality teams that prioritize profitability and are able to invest at better valuations than in the past.

AC Ventures invests across Southeast Asia, but Indonesia is at the top of its investment strategy as it accounts for 40% of the region’s economy. Jakarta’s economy is expected to grow to $360 billion by 2030, and the country has adopted investment promotion policies, including initiatives and reforms to strengthen its digital economy. Michael Soerijadji, co-founder and managing partner of AC Ventures, said Indonesia’s economic growth is primarily driven by consumer spending, as well as manufacturing, services and exports.

Regarding Fund V, Lee said the company has particular interest in fintech, e-commerce, healthtech, MSME enablement and climate. The team is also excited about consumer-facing startups in areas such as online retail, consumer services, and consumption upgrades as digital adoption continues to expand.

“We see significant business potential to leverage these changing patterns and offer Indonesian consumers unique value-driven solutions that can not only displace incumbents but also drive new markets. I believe there is,” Lee said.

AC Ventures works with startups by supporting their business development and strategic partnerships and providing advice on talent identification, government relations, financial planning, and financing. We also advise on marketing, PR and ESG.

One of AC Ventures’ priorities is to invest in companies that have a significant environmental and social impact. The company said its third fund, Fund III, had an overall impact ratio of +37% as measured by Finland’s The Upright Project, outpacing the Nasdaq Small Cap Index average by +29%. It is said that it has surpassed that amount. Managing partner Helen Wong says that when AC Ventures considers a startup, he performs a baseline assessment across four areas: environment, health, society and knowledge.

We also strongly encourage gender equality. His 50% of the company’s leadership is female, and in that portfolio, his 41% of C-level leaders are also female. Ms Wong said AC Ventures is a signatory to the United Nations Women’s Empowerment Principles and IFC’s Invest2Equal program. The company encourages companies to take a holistic approach to leadership recruitment and development, and hosts events with LPs such as IFC to foster networking and mentorship for female founders. .

“Showing successful stories of women-led startups in our portfolio is also an important aspect,” she says. “This sets a powerful example for others to follow.”