ADB Ventures

ADB Ventures is the corporate venture arm of the Asian Development Bank (ADB), launched in 2020 to invest in early-stage startups offering technology solutions that address climate change and contribute to the Sustainable Development Goals (SDGs) in Asia and the Pacific. Its mission is to scale up impact-driven climate and sustainability technologies by providing patient venture capital and technical assistance to startups, particularly in emerging markets where access to risk capital is limited. The firm focuses on sectors such as clean energy, sustainable agriculture, sustainable mobility and supply chains, circular economy, green finance, and inclusive communities. By leveraging ADB’s extensive network and resources, ADB Ventures aims to catalyze innovation, accelerate market entry, and mobilize private capital to drive sustainable development and gender equality impact in the region[1][2][3][4].

ADB Ventures operates through two main funding mechanisms: the SEED program, which provides grants to very early-stage startups to validate and pilot climate-focused technologies, and the Equity Fund, which invests equity in growth-stage companies ready to scale. This dual approach helps startups overcome early financial barriers and accelerates their expansion into emerging markets. The fund raised $60 million in 2020 and targets investments ranging from $100,000 to $4 million, with a focus on climate and gender impact. Its impact on the startup ecosystem includes de-risking innovative solutions, fostering networks between startups and early adopters, and supporting regulatory navigation, thereby strengthening the climate tech ecosystem across Asia-Pacific[1][2][3][4].

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Origin Story

ADB Ventures was established in January 2020 as a non-sovereign platform under the Asian Development Bank, headquartered in Manila, Philippines. It was launched with support from key partners including the Nordic Development Fund (NDF), the Ministry of Foreign Affairs Finland, the Clean Technology Fund, and others. The initiative emerged from the recognition of a supply-demand gap in climate technology solutions in developing Asia-Pacific markets, where promising startups faced significant barriers to market entry and scaling. The fund was designed to address these challenges by combining venture capital with technical assistance over a three-year program, enabling startups to pilot, validate, and expand their solutions. Since its inception, ADB Ventures has evolved to focus strongly on climate and gender impact, leveraging ADB’s operational networks to support startups across Southeast and South Asia[1][2][3].

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Core Differentiators

• Unique Investment Model: Combines venture capital with a dedicated technical assistance program to de-risk early-stage startups and accelerate market entry.
• Network Strength: Leverages ADB’s extensive regional presence and partnerships with governments, accelerators, and industry players to connect startups with early adopters and regulatory support.
• Impact Focus: Applies a dual lens of climate (80% of investments) and gender (75% of investments) impact, targeting Sustainable Development Goals in developing member countries.
• Flexible Funding Mechanisms: Offers both SEED grants for pre-revenue startups and equity investments for growth-stage companies, addressing different stages of startup development.
• Long Fund Life: A 17-year fund life allows patient capital with holding periods up to 10 years, accommodating the longer timelines often needed for impact tech startups to mature[1][2][3][4].

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Role in the Broader Tech Landscape

ADB Ventures rides the global trend of impact investing and climate tech innovation, focusing on emerging Asia where climate vulnerability and development needs are acute. The timing is critical as Asia-Pacific countries increasingly prioritize sustainable development and climate resilience, creating demand for innovative solutions in clean energy, sustainable agriculture, and circular economy. Market forces such as rising climate risks, regulatory shifts, and growing investor interest in ESG (Environmental, Social, and Governance) criteria favor ADB Ventures’ model. By bridging the financing gap for early-stage impact startups, ADB Ventures plays a catalytic role in strengthening the regional ecosystem, encouraging private sector participation, and accelerating the adoption of transformative technologies that contribute to the SDGs[1][2][3][4].

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Quick Take & Future Outlook

Looking ahead, ADB Ventures is poised to expand its portfolio and deepen its impact by mobilizing more private capital alongside its core funds. Trends such as digitalization, green finance, and gender-inclusive innovation will shape its investment focus. The fund’s patient capital approach and technical assistance will remain crucial in helping startups navigate complex markets and regulatory environments. As climate urgency intensifies and sustainable development becomes central to Asia’s growth, ADB Ventures’ influence is likely to grow, positioning it as a key enabler of climate tech innovation and inclusive growth in the region. Its continued success will depend on scaling its impact, fostering stronger ecosystems, and leveraging ADB’s unique position to connect startups with policy and market opportunities[1][2][3][4].