Singapore-based climate tech venture capital fund Wavemaker Impact has raised $15 million from the United States International Development Finance Corporation (DFC) for its debut fund.
Wavemaker Impact is currently fundraising for its inaugural vehicle, which is expected to be oversubscribed by the end of 2023. “We are delighted to welcome the DFC as a limited partner to Wavemaker Impact to help us catalyse more investments in the region,” said founding partner Quentin Vaquette in a statement.
The firm seems strong alignment with the DFC’s focus on agriculture, food, and land use, which account for approximately half of SE Asia’s emissions, as well as decentralised infrastructure, Vaquette continued.
Earlier in May, DealStreetAsia reported that Wavemaker Impact was nearing the final close of its first vehicle, which was estimated to close by mid-2023. The report said that the fund has a target size of $25 million although the VC firm declined to comment.
Launched in October 2021, Wavemaker Impact is the first VC-backed climate tech venture builder in Southeast Asia. The team co-founded startups with experienced entrepreneurs, aiming to reduce 10% of the global carbon budget by 2035.
Each company created by Wavemaker Impact is a ‘100×100’ company, with the potential to abate 100 million metric tonne carbon and achieve $100 million in revenue.
Wavemaker Impact has forged strategic partnerships with prominent organizations, including the Singapore government’s Enterprise Singapore and EDB New Ventures, as well as the United Nations Development Programme. It also launched an agri-tech joint venture with Bill Gates’ Breakthrough Energy Ventures, GenZero, and Singapore state investor Temasek.
The firm has launched six companies so far in various segments such as carbon sequestration, residential solar penetration through mortgage integration, regenerative agriculture, degraded land restoration, food waste, and sustainable fuels.
With this new investment, Wavemaker Impact aims to expand its portfolio to 20 companies by the end of this year and to 16 companies next year.
“DFC is proud to support Wavemaker Impact in catalyzing investment for innovative climate solutions in Southeast Asia. This transaction demonstrates DFC’s commitment to providing impactful financial support for innovative, sustainable, values-based enterprises promoting scalable climate solutions,” said Mateo Goldman, acting vice president of DFC’s Office of Equity and Investment Funds.
Climate change is an imminent problem in SE Asia that needs concrete solutions. Over the past year, several climate tech and impact-focused funds have emerged to support startups creating solutions in this space. Besides Wavemaker Impact, other notable funds include The Radical Fund and Energy Ignition Ventures by TRIREC and INNOPOWER.