• Published on 23 January 2024
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AC Ventures secures $210M for tech-enabled businesses in Southeast Asia

Indonesia-based AC Ventures (ACV) announced the final close of its fifth investment fund, ACV Capital V L.P. (ACV Fund V), totaling $210 million, including co-investment funds.

Indonesia's macroeconomic environment and digital economy, valued at $82 billion in 2023 is expected to reach $360 billion by 2030, positioning the nation as a key destination for global technology investors. AC Ventures Fund V's closure is an important milestone in AC Ventures’ journey, bolstering its commitment to serving as a generational partner to visionary founders and high-potential ventures that drive economic and societal impact across the region.

Pandu Sjahrir, founding partner said: "Indonesia stands out as a vibrant investment hub, thriving amidst global economic shifts. Our growth is fueled by a young and growing population, rising prosperity, and a stable pro-investment government. On this trajectory, Indonesia is on course to be among the top 10  largest economies in the world over the coming decade.”

AC Ventures Fund V has garnered support from a sophisticated group of global limited partners, with over 50% of commitments from returning investors and over 90% of funds composed of institutional capital. Key investors backing the fund include the World Bank’s IFC, along with prominent financial institutions from the US, the Middle East, and North Asia.

Euan Marshall, country manager for Indonesia and Timor-Leste at IFC, said: “The dynamic growth of tech-enabled businesses has become a major catalyst for innovation. It not only generates employment opportunities for young people, but it also provides innovative solutions that enable better delivery of vital services that address pressing development challenges.”

“By supporting venture capital through funds like ACV Capital V, IFC can help more startups and digital entrepreneurs innovate and amplify their impact in Indonesia and beyond.”

In recent years, AC Ventures has increased its emphasis on sustainable impact alongside high financial returns. The firm has prioritised companies that deliver not only strong economic value but also environmental and social impact. Illustrating this, the firm’s fund III delivered an overall net impact ratio of +37% as measured by The Upright Project in Finland. This ranks the firm and its portfolio above the Nasdaq Small Cap Index (NQUSS) average of +29% by a significant margin.

ACV Fund V has already started deployment and announced investments from the new fund including leading rounds in Indonesian electric vehicle manufacturer MAKA Motors, sustainable farming startup Koltiva, and more.

Adrian Li, founder and managing partner, said: “With ACV Fund V, we are not just investing in companies with significant financial upside, but in a future where economic success and societal impact go hand in hand.”

“Our focus on financial returns and sustainability is not only a reflection of what is trending in the market. It is a fundamental cornerstone of our long-term investment philosophy to create significant value for all stakeholders.”

AC Ventures differentiates itself in Indonesia by providing hands-on value-creation services to its portfolio companies. Its value creation team plays a role in steering startups toward growth, innovation, and sustainable success.

The division offers an array of services tailored to the needs of startups. These include functional support to portfolio companies in business development and strategic partnerships, talent advisory, government relations, financial planning, and fundraising.

Additionally, the team specialises in marketing, growth, public relation, and environmental, social, and corporate governance guidance, all further supported by a community of external expert advisors. This network includes industry veterans, entrepreneurs, and experts ranging from lawyers to tech innovators and Fortune 500 leaders.

Michael Soerijadji, founder and managing partner, said: “The Indonesian economy is on a very positive  trajectory. The current market environment provides an opportunity to invest in fast-growing, operationally efficient companies with a strong focus on profitability at more attractive valuations.”

AC Ventures is an advocate for diversity and inclusion. Within the firm, 50% of its senior leadership roles are filled by women. This extends to its portfolio companies, with 41% C-level female leadership representation.

Helen Wong, managing partner commented: “I am excited that we have fresh funds to deploy and will look for the best founders, including female founders who are often neglected in the tech ecosystem. We will also continue to advocate gender equality within our team, as we have found that it brings varied perspectives that are crucial for holistic decision-making and understanding diverse markets.”

Re-disseminated by The Asian Banker