AC Ventures (ACV), a Southeast Asia-based investment firm, has joined the International Finance Corporation’s (IFC) We Fund Climate program.

This initiative aims to integrate gender equity into climate investment strategies by co-developing a Gender Smart Climate Commitment and Action Plan.

As part of the program, ACV will participate in expert-led clinics and peer learning sessions. These sessions will help incorporate gender-inclusive practices in its investment processes.

This move is based on studies showing that women-led startups generate higher cumulative revenues over time, even with less funding than their male counterparts.

The We Fund Climate program, facilitated by Value for Women on behalf of IFC, seeks to address disparities in capital access for women-led climate solutions.

In line with this mission, ACV has invested in startups such as Accacia, Xurya, Waste4Change, and Koltiva.

🔗 Source: AC Ventures

🧠 Food for thought

1️⃣ The economic case for gender-smart climate investing goes beyond social impact

The persistent gender funding gap exists despite compelling evidence of superior financial performance from women-led ventures.

Despite receiving less than half the funding of male counterparts, women-led startups generate 78 cents in revenue per dollar invested compared to just 31 cents for male-founded ventures, as noted in AC Ventures’ announcement 1.

This efficiency extends beyond startups. Research across 700+ funds shows that gender-balanced investment teams deliver 10-20% higher returns compared to teams dominated by one gender 2.

The pattern of outperformance is consistent over time, with women-founded companies generating 10% more revenue over five years compared to male-led teams 3.

These performance metrics suggest that AC Ventures’ 40% women-led portfolio isn’t just about diversity targets but represents a strategic investment approach focused on superior returns.

This economic reality makes gender-smart climate investing particularly compelling as it combines two factors, gender diversity and climate focus, that individually demonstrate financial outperformance.

2️⃣ Systemic barriers persist despite proven performance advantages