Catalyzing change: ADB Ventures’ focus on impact startups in Asia

Startups with great ideas often struggle to put their solutions into the hands of those that need it most.

This is especially true in the case of impact-focused startups, those that tackle challenges in areas such as sustainability and income inequality. These companies often struggle to raise funds, especially in the current market, where global economic and political uncertainties have VCs are turning to so-called “safer” bets.

Thankfully, catalytic investors such as ADB Ventures exist.

Jussi Ahonen, head of ADB Ventures / Photo credit: ADB Ventures

Founded in 2020, ADB Ventures is the venture capital arm of the Asian Development Bank (ADB), and it plays a critical role in supporting early-stage companies in impact-related sectors.

Jussi Ahonen, head of ADB Ventures, shares more about what it does and its vision for Asia’s impact startups.

1. Why was ADB Ventures launched?

First, access to early-stage capital remains limited in developing Asia, particularly for startups in the climate tech space. Many high-impact growth companies struggle to raise the funding they need to scale. ADB Ventures was established to help fill this critical gap.

Second, as a catalytic investor, our role is to help de-risk and scale innovation. ADB Ventures’ investment signals credibility, which in turn helps attract additional capital, addressing the broader funding challenges faced by these companies.

Ultimately, this aligns with the broader mandate of the Asian Development Bank: to deploy capital in ways that drive inclusive, sustainable economic development across the region.

2. What industries or markets is ADB Ventures most interested in?

Fund I, which closed in 2020 at US$60 million, is primarily focused on climate tech. The mandate and sector focus of our funds have consistently centered around this space, so we’ve been supporting the electric vehicle (EV) segment, as well as the accelerated adoption of EVs across the region, especially with two- and three-wheeled vehicles.

We’ve also invested in adjacent ecosystems, such as battery swapping and EV financing.

What battery swapping stations could be / Image credit: Made by Tech in Asia using Midjourney

We run our Seed Capital+ program as well, which supports earlier-stage startups that have yet to raise significant external funding. Under this program, our mandate is slightly broader, and we look beyond climate tech to include other development themes such as financial inclusion, sustainable food systems and supply chains, and green materials, among others.

Broadly speaking, we invest in early-stage growth companies – especially in high-impact businesses that also have the ability to scale commercially – and in emerging Asian countries, particularly South and Southeast Asia.

3. What are some exciting companies in ADB Ventures’ portfolio?

One exciting startup is Tiger New Energy, a battery-swapping business in Bangladesh. It supports low-income electric truck drivers, who can simply swap their batteries to reduce vehicle downtime, instead of having to wait for their vehicles to charge.

Tiger New Energy offers battery swapping solutions / Photo credit: Tiger New Energy

This gives these drivers more time to focus on their work, helping them to increase their earnings by 60% while also promoting sustainable mobility.

Additionally, it’s founded by two great women, Nicole Mao and Yiwei Zhu, and gender diversity is important to ADB Ventures in the companies we back. Tiger New Energy has been very successful while operating in one of the most challenging markets in developing Asia.

Another great startup is Electrifi Mobility, now known as Astranova Mobility, which operates in India. Founded by Nikhil Aggarwal and Kunal Mundra, it’s a fintech company that provides financing solutions for the EV sector to help facilitate the purchasing and leasing of EVs.

The founders of Astranova Mobility / Photo credit: Astranova Mobility

It’s a great example of a company that isn’t directly involved in climate solutions but offers much needed support and makes a huge impact all the same.

Aside from their work in the climate tech space, what drew us to these companies was the founders and the management. Both of these companies have really strong management that share our values and our vision.

4. How does ADB Ventures support its portfolio startups beyond funding?

One of ADB Ventures’ key strengths is its convening power, which allows us to bring together different parties to take on the climate challenge and create impact.

Startups we invest in must meet rigorous standards – not only in terms of commercial viability but also integrity and environmental and social safeguards. This provides like-minded investors with a level of quality assurance, which in turn helps these startups raise further capital.

Beyond funding, we bring deep sector expertise in the impact space and a big regional presence. We support portfolio companies in identifying new markets where ADB is present across Asia and the Pacific and help them assess, navigate, and scale within the segment more effectively.

5. How has ADB Ventures’ Fund 1 performed so far?

It’s still early days, but the signals are promising.

From an impact perspective, Fund I has already delivered strong results. We’ve met several key development targets, including significant carbon dioxide emissions reductions and meaningful progress on gender inclusion.

About 25% of our portfolio companies have female founders or senior leadership, which is notable in Asia’s climate tech ecosystem. Many of these companies also align with the United Nations’ Gender Action Plan, reinforcing our commitment to inclusive innovation.

Photo credit: ADB

We’ve just concluded the investment period for Fund I, and as expected at this stage, there have been no exits yet. As a long-term investor, ADB Ventures is committed to supporting its portfolio companies over several years, focusing on value creation and sustainable growth.

Our Fund 2 is now up and running, with its first close completed in early 2025, retaining a strong focus on climate tech and impactful innovation across Asia. Fund 2 has the same anchor investor as Fund 1, and the continued support reflects strong confidence in our model and approach, so we’re optimistic about deepening our impact in the years ahead.

6. What does the road ahead look like for ADB Ventures?

The winds of the global economy are constantly changing, but there will always be a need for capital for innovative businesses. We’re focused on scaling our operations by expanding our portfolio, deepening support for existing companies, and exploring new sectors where catalytic capital can unlock meaningful change.

The demand for mission-aligned capital remains strong, and we’re building on the momentum of Fund I – and Fund 2, as it progresses – to help accelerate the next generation of climate and development solutions across the region.

ADB Ventures is the venture capital arm of the Asian Development Bank. It aims to back bold technology startups with solutions that transform lives and impact society, partnering with them for the long term.

Learn more about ADB Ventures on its website.

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This content was produced by Tech in Asia Studios, which connects brands with Asia’s tech community. Learn more about partnering with Tech in Asia Studios.