On 31 January 2020, The Asian Development Bank (ADB) approved the establishment of ADB Ventures, a new venture platform that will support and invest in startups offering impact technology solutions that contribute to the achievement of the Sustainable Development Goals (SDGs) in Asia and the Pacific.
ADB Ventures Investment Fund 1, the facility’s anchor trust fund, has a target size of $50 million and is accepting contributions from multiple funding sources including bilateral and multilateral development partners. It will mainly invest in early-stage startups and focus on companies with solutions that can address climate change and empower women. The fund has a 17-year fund life, allowing ADB to invest patient capital into cleantech, fintech, agricultural technology, and health technology solutions.
The Nordic Development Fund, Climate Investment Funds, and the Government of Australia funded project preparation for the ADB Ventures facility. ADB Ventures Investment Fund 1 is expected to begin operations in the second quarter of 2020. One of its main aims will be to mobilize private capital through co-investing with private sector investors.
Unlike traditional venture capital funds, ADB Ventures Investment Fund 1 is augmented by a three-year, $12 million technical assistance program that will support impact technology startups through two main activities. ADB Ventures SEED is a grant program to validate and de-risk technology pilots and promote expansion into emerging markets that startup companies might otherwise not prioritize. ADB Venture Lab is a suite of corporate innovation programs implemented in partnership with industry and leading accelerators for startups. ADB Ventures will leverage ADB’s operational networks and industry expertise to generate technology pilot opportunities and support ADB Ventures Investment Fund 1 portfolio companies.