AC Ventures’ recent news will inspire Southeast Asian companies during a protracted fundraising winter.
ACV Fund V, the Jakarta-based venture firm’s fifth fund, closed today with $210 million from the World Bank’s IFC and US, Middle East, and North Asian investors. The fund has over 90% institutional capital and over 50% returning LPs.
From Fund V, AC Ventures has invested in Indonesian electric car producer MAKA Motors and sustainable farming firm Koltiva. The business manages about $500 million across five funds. Fund V will add 25 firms to AC Ventures’ 120. The check amount will range from $2 million to $5 million, depending on investment prospects. Startups that expand rapidly and meet AC Ventures’ impact targets may receive $20 million to $30 million.
Adrian Li, co-founder and managing partner of Fund V, tells Eltrys, “2023 was a challenging time for venture and technology businesses in the context of fundraising, perhaps one of the toughest in the past decade.” However, AC Ventures found new and returning limited partners who recognized the same potential in Indonesia and Southeast Asia.
“Our limited partners share a firm belief that challenging times often yield the best investment opportunities,” Li explains. Due to Indonesia’s long-term demographic trends and solid economic fundamentals, we’re certain our current fund will be one of the greatest vintages. He says AC Ventures has encountered more high-quality teams who emphasize profitability and are open for investment at favorable prices in the previous year.
AC Ventures invests in Southeast Asia, but Indonesia is its top pick because it accounts for 40% of the region’s GDP. Pro-investment policies, particularly digital economy reforms, are predicted to boost Jakarta’s GDP to $360 billion by 2030. Private consumption, manufacturing, services, and exports fuel Indonesia’s economic development, says AC Ventures co-founder and managing partner Michael Soerijadji.
Li said Fund V prioritizes finance, e-commerce, health tech, MSME enablement, and climate. The team also likes firms in online retail, consumer services, and consumption improvements as digital usage grows.
Li argues there’s enormous commercial opportunity to tap into these changing patterns and deliver distinctive, value-driven solutions to Indonesian customers, disrupt incumbents, and drive new markets.
AC Ventures advises companies on people, government relations, financial planning, and financing as they expand their businesses and strategic relationships. It offers marketing, PR, and ESG advice.
AC Ventures prioritizes investing in environmentally and socially responsible companies. Fund III, its third fund, had an effect ratio of +37%, higher than the Nasdaq Small Cap Index average of +29%, according to Finland’s The Upright Project. AC Ventures assesses businesses in four areas: environment, health, society, and knowledge, according to managing partner Helen Wong.
It actively promotes gender equality. Its portfolio has 41% female C-level leaders and 50% female leadership. Wong said AC Ventures signed the UN’s Women’s Empowerment Principles and the IFC’s Invest2Equal. It pushes its firms to hire and grow inclusive leaders and hosts events with LPs like IFC to assist female entrepreneurs.
“Showcasing the success stories of female-led startups in our portfolio is another key aspect,” she says. This establishes tremendous examples for others to follow.
