Singapore-based climate tech venture builder Wavemaker Impact has hit the final close of its debut fund at $60 million, surpassing the vehicle’s initial target of $25 million, according to an announcement.
The firm’s latest limited partners include development finance institutions such as the British International Investment (BII), the United States Development Finance Corporation (DFC), and Triple Jump / DGGF. Beacon Capital, KBank’s venture arm, and Autodesk Foundation also committed to the fund.
“We are pleased to have brought together a diverse group of investors, including development finance institutions, institutional investors, sector-leading corporations, and strategic family offices, all of whom are committed to supporting our efforts to achieve success with Fund 1 and create a platform for subsequent funds,” says Quentin Vaquette, Co-Founding Partner at Wavemaker Impact.
For new investor BII, the partnership with Wavekmaker Impact will mark BII’s entry point into climate tech in SE Asia, managing director and head of Asia Srini Nagarajan said in the statement.
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.
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.
Another four investments are on track before the end of this year, per the announcement.
Wavemaker Impact’s current portfolio
| Agros | Sustainable farming platform for horticulture farmers |
| WasteX | Distributed biochar technology company that sequesters agricultural waste emissions |
| Rize | Platform for farmers to reduce methane emissions in rice cultivation |
| Helios | Southeast Asia’s first residential solar mortgage company |
| BumiBaru | Degraded land flipping company in Indonesia |
| RegenX | Regenerative agriculture platform focusing on commodity crops like coffee and cacao |
The firm plans to invest in over 18 companies in the next 2-3 years, with a typical cheque size of $500,000. Founders of the investee companies get to keep 70% of the stake, while the fund takes 20% and Wavemaker Impact Studio takes 10%.
“There’s a paradigm shift in the investor community’s perspective, with growing belief that climate tech ventures can be profitable, high growth investments that significantly contribute to the fight against global warming,” said Marie Cheong, founding partner of Wavemaker Impact.
Wavemaker Impact said the fresh capital will allow it to expand its portfolio companies and continue making follow-on investments in its best-performing ventures all the way to their Series B funding rounds.
Each company created by Wavemaker Impact is a ‘100×100’ company, with the potential to abate 100 million metric tonne of carbon and achieve $100 million in revenue.
The firm has also 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.