Korean VC firm launches $33m fund to help startups in ESG adoption

Korean early-stage VC firm Ascendo Ventures has launched a US$33 million fund to back startups that are implementing environmental, social, and governance (ESG) solutions into their tech development or business models.

(From left) Aaron Shin, co-founder and managing director/CEO of Ascendo, Jason Lee, co-founder and managing director of Ascendo, and Alex Namkung, co-founder and director of Ascendo /Photo credit: Ascendo Ventures

Called the Ascendo New Horizon Fund, the new investment vehicle will find opportunities in startups looking to drive developments in the renewable energy, food tech, and carbon emissions technology sectors, as well as businesses with blockchain-driven and decentralized governance structures.

Ascendo said it looks to eventually take New Horizon Fund’s size to US$70 million through several closings.

According to the company, it will also invest in the follow-on fundraises of the rapidly growing portfolio companies of its first fund, the Ascendo Genesis Fund. These include series A firms that operate in the contactless tech field, those that focus on operations automation via AI and robotics, and digital healthcare companies.

One of Ascendo’s most recent investments is in the US$21 million round of Korean agritech firm N.Thing.

“Unlike traditional Korean VCs, we have deep experience in bridging this gap and will continue to do so by connecting portfolio companies with our global network of partners, advisors, and investors,” said Jason Lee and Aaron Shin, co-founders and managing directors, and Alex Namkung, co-founder and director of Ascendo Ventures, in a joint statement.

The two will be managing the new fund. Lee previously held senior VC investment roles at LB Investment, Cheil Worldwide, and BA Partners, while Shin was an ex-venture capitalist at SoftBank Ventures and led Formation 8’s investments in Korea.