- Southeast Asian investors are gearing up to fund electric vehicles and clean energy amid the boom.
- E-bike makers scored big deals as funds poured $156 million into 15 climate startups in 2023.
- VCs see ample room for growth in mobility, batteries, charging, solar, and agritech.
A hot market
Funds in the region poured $156 million into 15 climate-focused startups in 2023. Due to policy tailwinds, analysts forecast electric personal transport, infrastructure electrification, and next-gen power to remain hot.
E-bike makers scored big, with Indonesia’s Alva raising $50 million and Singapore’s Ion Mobility securing $18 million in recent leading deals. Manufacturing hubs emerging in nations like Vietnam and Malaysia also have VCs excited.
Electric two-wheelers, renewable energy sources, and sustainable agriculture rank among the climate tech themes catching investors’ eyes in Southeast Asia next year.
Targeting renewable energy
Firms see ample room for growth via financing options to boost EV scooter adoption. Similarly, they plan to back up surrounding battery and charging innovations, enabling the transition.
But mobility is only part of the climate opportunity. Investors also plan to target renewable energy suppliers like solar providers enjoying regulatory boosts. More developing solutions, including green hydrogen or even long-shot nuclear fusion, have piqued interest.
The rise of sustainability-focused funds
Analysts note new sustainability-focused funds are cropping up to serve the expanding field. So, VCs stand ready to support the next pillars of a greener regional grid.
Caution sounds around trends like alternative proteins despite past fanfare. Plant-based meats have seen backlash amid high prices. The immense scaling challenges facing lab-grown products have dampened hopes.
However, less glitzy segments like agricultural efficiency tech still hold promise to investors given climatic urgency. Southeast Asian VCs otherwise see climate solutions blossoming.
