AC Ventures Closes Final Round of Fifth Managed Fund of IDR 3,2 Trillion

AC Ventures (ACV) closed the final round of its fifth managed fund ACV V LP (ACV Fund V) with a total of $210 million (around IDR 3,28 trillion). This value includes co-investment funds.

ACV Fund V is supported by a number of global Limited Partners (LP), involving IFC and leading financial institutions from the United States, the Middle East and North Asia. Of this total value, 50% of the funds collected came from previous investors, and 90% of the funds came from institutional capital.

His first round closing in 2022 valued at IDR 2,4 trillion. Based on summarized data DailySocial.id Throughout 2023, ACV has invested in a number of Indonesian startups, including ALAMI, BRIK, Broom, Maka Motors, and Rosé All Day Cosmetics.

"Indonesia is becoming a dynamic investment center, growing rapidly amidst global economic shifts. This growth is driven by a young population, increasing prosperity, and a stable, pro-investment government. Indonesia is on track to become one of the ten largest economies in the world in next decade," said ACV Founding Partner Pandu Sjahrir.

Furthermore, ACV expressed its commitment to sustainable impact in line with achieving positive financial performance, not only the creation of economic value.

He said that managed funds III achieved a net impact ratio of 37% by The Upright Project, an AI-based model made in Finland to measure the net impact of companies and managed funds. This achievement is said to have placed ACV and its portfolio above the Nasdaq Small Cap Index (NQUSS) average of 29%.

"Our focus on balancing financial results and sustainability, not only reflects the current market response. It is a fundamental tenet of our long-term investment philosophy to create substantial value for all stakeholders, with a strategic approach and emphasizing sustainable impact and sound financial governance responsible," said AC Ventures Founder & Managing Partner Adrian Li.

In providing added value to its portfolio, ACV has a value creation team (value creation) which accompanies startups to achieve growth, innovation and sustainable success. The team also has specialized expertise in marketing, growth, public relations, and ESG guidance.

Indonesia's digital economy is predicted to continue growing in the next few years with a projected total GMV of $110 billion in 2025. However, Indonesia's startup investment climate this year is predicted to remain difficult, triggered by global economic uncertainty.

According to a number of investors, 2024 will still be the momentum for technology and digital startups to improve their business fundamentals. Startups need to achieve profitability to restore investor confidence in their business.