Southeast Asia’s rapidly growing startup ecosystem offers a compelling investment opportunity to VC Firms. The region has produced four extra unicorns in the last year. For example, a decade ago, the majority of large investors in Southeast Asia focused on primary industries such as oil and gas, mining, and agricultural commodities. Today, several investors are supporting business models that build sustainable solutions. Several examples include businesses engaged in the development of renewable energy initiatives, i.e. solar based, batteries innovation, etc., which are in huge demand in the present market.
With increasing global warming, and rising concerns over diminishing resource availability of fossil fuels, renewable energy has garnered huge attention in the current environment. Good solutions built in the renewable energy domain will have immediate demand in the present market. Many governments provide subsidies and other incentives to increase adoption of alternative energy sources. Such favourable market conditions prompted investors also to fund startups in the renewable energy domain. This is also one of the reasons why many startups working on renewable energy are attractive to investors.
In this article, we’ll list down major investors and VC Firms investing in SEA region based energy startups.
- Armstrong South East Asia Clean Energy Fund
This private equity firm specialises in small-scale renewable energy and resource efficiency projects in Southeast Asia, with a primary focus on Thailand. The region’s high energy consumption and solid market fundamentals underpin this approach. No technology risk, early cash flows, low entry valuations due to lack of investor competition, competitive advantage due to local operating experience, and a clear exit strategy underpin the investment strategy. - Renewable Energy Asia Fund (REAF)
REAF is a South and South-East Asian focused private equity fund. nm Renewable energy legislation, deregulation of the electricity sector, and future demand growth for power are all targets for REAF. REAF’s investment activity has centred on the huge possibility in the Philippines and India. REAF seeks to eliminate technical risk by investing in small and medium-sized hydro, wind, solar photovoltaic, geothermal, and biomass projects that are operationally and economically mature. REAF invests in renewable energy projects and project developers during the development stage, and aims to produce profits via individual or aggregated portfolio exits, regionally or technologically. - Renewable Energy Asia Fund II (REAF II)
REAF II is a private equity firm specialising in investments in renewable energy infrastructure in South and Southeast Asia. REAF II is the successor fund to REAF, which received a € 12.5 million commitment from GEEREF. REAF II focuses on markets and assets where value is supported by mature and developing local renewable energy laws, deregulation of the electrical sector, and demographic and commercial forces underlying future power demand growth, most notably in India, the Philippines, and Indonesia. REAF II’s primary investment objective is to invest in renewable energy projects that utilise operationally and economically mature technologies that have a track record of success, namely small and medium-sized hydro, wind, solar photovoltaic, geothermal, and biomass, in order to avoid technology risk. - Vickers Venture Partners
Vickers Venture Partners is a growth stage venture capital company that makes investments in countries such as Singapore, China, and other emerging markets. The business makes investments in a variety of industries, including Fintech, Mobile Technology, Biopharma, and Renewable Energy. DrugArray, MediaTab, SkyRoam, GuavaPass, and other leading portfolio firms are examples. - Petronas Ventures
A recent agreement between PETRONAS and SOLS Energy Sdn Bhd to invest in a solar photovoltaic (PV) system startup that provides sustainable energy for the residential and small-to-medium-sized enterprise (SME) sectors in Malaysia was signed by PETRONAS Ventures, the company’s corporate venture capital arm. In this second venture capital investment project, PETRONAS seeks to expand its commitment to renewable energy as a solutions partner by increasing its investment in the renewable energy area. - Wavemaker Group
Wavemaker is a cross-border early-stage venture capital business that focuses on early-stage technology startup prospects. It was founded in 2007. Wavemaker Group, formed in 2003, is a multi-faceted cross-border venture capital business with a global reach. The business has offices in both Los Angeles and Singapore and has raised more than $580 million across a number of different funds. There are 70 employees working in our firm now, spread across both sides of the business. Wavemaker is one of the most active early-stage investors in Southern California and Southeast Asia, having invested in more than 360 firms over the course of the previous seventeen years. - Clime Investment Management
The Clime Group is an Australian Financial Services Company. Clime (previously Loftus Capital Partners) was founded in 1996 by John Abernethy, who advised and managed portfolios for some of Australia’s wealthiest individuals. Clime has continued to succeed in the field of investment since then. Consistent usage of their proven absolute return focused value investing approach and continuous stock market research indicates their commitment to investing and expanding client wealth. Their past record speaks for itself, but more significantly, their focus on long-term development rather than short-term gains has resulted in their shown success. They have also invested in startups working in SEA regions in the renewable energy domain. The team is overseen by Chief Investment Officer John Abernethy and guided by a solid and established investment procedure.
Renewable energy startups come in a variety of forms and sizes; while some create solar and wind energy technology, others assist the development and funding of such projects. Not to mention the renewable energy businesses that develop environment friendly and efficient grid batteries, as well as those that investigate the possibilities of microgrids and harness the power of nature. Sustainable technology and solutions will act as market disruptors, ushering in new business opportunities and innovation. Startups working on building strong, scalable solutions in this domain will get access to a lot of opportunities, can secure funding at favourable terms, and can scale rapidly. It’s a good time for founders to bank on this favourable market environment and move their initiatives to the next level.
