Temasek Trust wants to bridge financing gap for impact startups

Temasek Corporate logo / Source: Temasek

Temasek Trust and DBS Foundation are planning to launch Co-Axis, a fundraising digital platform that matches impact startups with potential investors.

Through the platform, impact startups can raise capital from private investors, such as venture capitalists and private equity firms, but also public funds and philanthropists.

Like all startups, impact startups aim to generate financial returns for their investors. However, their social and environmental goals are also top priorities.

These startups typically find it difficult to fundraise through the traditional VC or private equity structure, said Dawn Chan, CEO of Temasek Trust’s Centre for Impact Investing and Practices, in an interview with Tech in Asia.

Adi Reza Nugroho, co-founder and CEO of Indonesian biotech startup MYCL, said that some investors are often reluctant to invest in impact startups because of unproven concepts or track record.

Co-Axis seeks to use philanthropic capital, which is more risk tolerant, to attract private or commercial capital towards projects with social and environmental goals. Chan believes that by doing so, private investors can reduce their risk of investing in emerging impact startups.

Co-Axis’ beta version will be launched at the Ecosperity and Philanthropy Asia Summit in April 2024.

See also: Mapping Temasek’s role in the startup space (updated)