Atlas Capital plans to raise USD10m for its fund next month to assist US climate tech startups looking to grow into Southeast Asia, as reported by Nikkei Asia on July 24. Atlas Capital is a Beijing-based private equity firm specializing in the new technology, entertainment, and consumer industries. According to the venture capital firm, the climate tech fund would eventually expand to USD50m. Djoann Fal, the fund’s general partner, revealed that one institutional investor and two corporate investors have committed to increasing the fund’s size to up to USD50m. Furthermore, Atlas Capital intends to have retail investors make up 30% of the fund’s LP base.

As investors become more concerned about environmental sustainability, financial institutions are joining the carbon neutrality bandwagon. According to Morningstar, global sustainable fund assets reached a record USD1.65tr by the end of 2020, representing an increase of about 30% YoY. BlackRock , the world’s largest asset manager, has made sustainability a primary focus and is pressing companies in its portfolio to increase their climate transparency. JPMorgan Chase also said in April 2021 that it will fund or enable USD2.5tr in investments over ten years to support solutions that address climate change and promote sustainable development. Venture capital firms are also getting involved in sustainable investment. According to PitchBook, worldwide venture capital investment in climate technology hit USD11bn in 2020, up from USD2.6bn in 2015, and the climate technology industry is expected to approach USD3.6tr by 2025.

Sources:

https://asia.nikkei.com/Spotlight/DealStreetAsia/Atlas-Capital-aims-to-net-10m-for-Southeast-Asia-climate-tech-fund

https://www.cdmfund.org/28600.html