The US International Development Finance Corporation (DFC) has invested US$15 million in Wavemaker Impact, a Southeast Asian climate tech venture builder.
The raise is part of Wavemaker Impact’s ongoing fundraise for its inaugural fund, which it expects to be oversubscribed by the end of this year. The venture builder hit the first close of this fund in November 2022, raising US$25 million.
Meanwhile, DFC said its investment supports its climate goals in Southeast Asia, a region that is more exposed to climate crises such as rising sea levels.
Launched by Wavemaker Partners in 2021, Wavemaker Impact works with experienced entrepreneurs to establish sustainability startups that aim to cut 10% of global emissions by 2035.
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Wavemaker Impact said in a statement that each company it co-founds must have the potential to reduce 100 million metric tons of carbon and generate US$100 million in revenue. Its partners include the Singapore government, te United Nations Development Program, Breakthrough Energy Ventures, GenZero, and Temasek.
With the new investment, Wavemaker Impact plans to establish 10 companies by the end of the year and 16 companies by 2024. So far, the firm has co-founded six companies in the areas of biochar, solar, regenerative agriculture, land restoration, food waste, and sustainable fuels.
See also: SEA tech companies’ efforts into net zero
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