ADB Ventures
ADB Ventures is a multi-donor facility under the Asian Development Bank (ADB) that was approved by the ADB Board of Directors on January 31st, 2020.[1] Its project preparation donors include the Nordic Development Fund, Climate Investment Funds, the Finnish Ministry of Foreign Affairs, and the Ministry of Economy and Finance (South Korea).[2] ADB Ventures was formed with the aim to work towards the Sustainable Development Goals (SDGs) in emerging markets in the Asia Pacific region (with a specific concentration on Southeast Asia and South Asia) by supporting mature tech startups with solutions within health technology, agritech, cleantech, and fintech, as seen through a climate change and gender lens.
Structure
The facility consists of two main elements: A Technical Assistance (TA) program and an Investment Fund. The TA program runs accelerator programs (called Labs) and disperses reimbursable seed grants to fund pilots for revenue-stage tech companies. The TA program was built to generate an investment pipeline for the Investment Fund by building the market for impact technologies in ADB's developing member countries (DMCs), in addition to mitigating market risks for early-stage companies (ESCs) providing impact technologies in those countries.[3] There are two components to the TA program:
- ADB Ventures Labs: The Labs component operates on an accelerator model that precipitates the deployment and scaling-up of impact technologies by pairing ESCs with large customers and rewarding both parties to work together to develop pilot testing proposals. It also seeks to produce proof-of-concept proposals to test impact technology solutions in DMCs.
- ADB Ventures SEED: The SEED component is a funding mechanism that allows ADB to validate potential impact technologies, including potential investees. Its output is investment opportunities to deploy and scale impact technologies in one or more DMCs.[4]
The Investment Fund co-invests in companies with impact technology solutions to SDG issues in the emerging Asia Pacific markets, particularly (but not exclusively) in South Asia and Southeast Asia.[5] The Investment Fund was formed to invest in ESCs with technology-based solutions operating in developing member countries. The overarching investment strategy of the fund includes a climate and a gender lens, as it seeks to build a diverse portfolio of ESCs contributing to ADB Ventures' objectives of climate change mitigation and gender equality.[6]
Criteria for support eligibility
All ADB developing member countries are eligible for support from ADB Ventures. Since it is managed by the bank's Private Sector Operations Department, only privately-owned entities are allowed for assistance. Each investment fund or TA program may have a different geographical and/or SDG focus based on market conditions, requests from partners and/or donors, and available expertise. ADB Ventures investment funds will be used to finance operational expenses pertaining to eligible projects in the form of foreign exchange and/or local expenditures for goods, work and services from ADB member countries in accordance with ADB's applicable guidelines and procedures.[7]
References
- ↑ Bank, Asian Development (2020-01-31). "ADB Unveils Venture Platform to Invest in Impact Technology Startups". Asian Development Bank. Retrieved 2020-03-10.
- ↑ https://www.smart-energy.com/industry-sectors/finance-investment/adbs-new-investment-arm-exceeds-fund-capitalization-target-adb/
- ↑ https://www.adb.org/sites/default/files/institutional-document/562671/adb-ventures-financing-partnership.pdf
- ↑ https://www.adb.org/sites/default/files/institutional-document/562671/adb-ventures-financing-partnership.pdf
- ↑ "The Landscape For Impact Investing In Southeast Asia – Intellecap". Retrieved 2020-03-10.
- ↑ https://www.adb.org/sites/default/files/institutional-document/562671/adb-ventures-financing-partnership.pdf
- ↑ https://www.adb.org/sites/default/files/institutional-document/562671/adb-ventures-financing-partnership.pdf
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