The Australian government’s flagship impact investment fund, Australian Development Investments (ADI), has committed $10 million to Vietnamese venture capital firm Do Ventures Fund II, per an announcement.
The investment will support early- and growth-stage small and medium enterprises (SMEs), driving Vietnam’s energy transition and climate adaptation across manufacturing, sustainable consumption, and AI-enabled climate solutions.
This is the ADI’s first commitment under its Vietnam investment window. This is a $13 million Vietnam-focused climate and gender lens investment window under the Australia-Vietnam Private Sector Clean Energy Partnership.
DealStreetAsia had earlier reported that Do Ventures is raising a second fund with a larger target than its $50-million debut vehicle closed in 2020.
By backing Do Ventures, an established woman-led venture capital firm, ADI is helping address structural barriers, with women representing just 11% of senior private equity and venture capital investment professionals in emerging markets.
Vietnam represents 40% of ADI’s current portfolio. Across five investment funds, ADI drives growth in 26 Vietnam-based SMEs, supporting 5,781 jobs, better access to finance for 260,000 small entrepreneurs, and the installation of 19.2 MW of new solar capacity, according to the announcement.
“Australia is a trusted, reliable partner for Vietnam, supporting Vietnam’s energy transition and climate adaptation,” said Australia’s Ambassador to Vietnam, H.E. Gillian Bird. “This significant commitment will strengthen Vietnam’s climate investment market to attract more private finance, to drive climate solutions in Vietnam.”
Vy Le, General Partner of Do Ventures, said, “This commitment allows us to strengthen our portfolio of climate investments and support more Vietnamese founders seeking to pioneer innovative and sustainable climate solutions. With ADI’s catalytic support, our Fund II can enable more startups to scale and create positive climate impact.”
ADI will also work with Do Ventures to strengthen its climate investment capabilities, including environmental, social, and governance practices and impact measurement, to support the fund and its portfolio companies to grow and perform over time.
ADI is the Australian government’s flagship AU$250-million impact investment fund, deploying capital and technical assistance to mobilise private investment and deliver climate and gender outcomes at scale.
In Vietnam, last year, ADI invested US$5 million in the Asia Business Builders Fund II (ABB Fund II), via its Investing in Women (IW) window. The IW window seeks to increase investment in businesses focused on benefitting women, thus contributing to greater gender equality.
Earlier, ADI, through the Emerging Markets Impact Investment Fund (EMIIF), also invested A$4.9 million (US$3.5 million) in venture capital investment firm Ascend Vietnam Ventures. EMIIF is a $40 million Southeast Asian-focused gender lens investment window.
Do Ventures announced the closing of its debut fund, Do Ventures Fund I, at $50 million in 2020. Its first fund focuses on early-stage companies and invests in seed to Series B rounds.
Recently, the VC investment firm roped in former Pavilion Capital executive Archer Goh as general partner as it prepares to raise its new vehicle.
Do Ventures has so far backed 22 companies in its portfolio.
