MDI Ventures to Launch "Impact Fund" This Year

By definition, impact investment or impact investing is an investment strategy that has specific environmental and social objectives, in addition to financial gain.

Seeing this potential, MDI Ventures planning to launch impact funding or impact funds in the near future to provide opportunities for startups targeting social, environmental and governance (ESG) impacts.

Previously, MDI Ventures had expanded its investment horizon by establishing Arise Fund with Finch Capital, emerges for angel investors, and Bio-Health Fund with Biofarma.

To DailySocialVP Business Development MDI Ventures Alvin Evander emphasized that currently, even though it is still within the same entity, the impact funding will be managed separately.

Still in preparation, the plan impact funds it will launch in Q2 or Q3 this year.

"Later we will launch an impact fund Dedicated focuses on startups that can contribute to the social impacts, especially for Indonesian startups. We launched this funding option as part of the expansion of MDI Ventures as CVC," said Alvin.

Alvin added, the company also wants to expand limited partners (LP). Previously Indonesian Impact Fund, managed by Mandiri Capital Indonesia (MCI) and UNDP, has announced the first closure of its managed funds since Q4 2021.

Some of the local and global VCs and investor networks targeting this segment are WIND, Teja Venturesand Beacon Fund from Patamar Capital.

Startup category

Now is considered the right time for MDI Ventures to launch impact funds to support the startup ecosystem in Indonesia. Although reluctant to mention specifically, Alvin emphasized that agritech, healthtech, edtech, and fintech startups that focus on financial inclusion become a choice based on the understanding and experience they already have.

"However, it is possible that we will also explore startups targeting climatetech and those who focus on energy utilization and waste management. We are still learning and are willing to do more in-depth exploration," said Alvin.

Mentioned how much investment value will be given through iimpact fund this, Alvin hasn't mentioned the nominal yet fund and ticket sizes per startup. They open up opportunities for startups at the entry level (seed), Series A, and Series B to contact them further if this funding has been launched.

There are several important points thathighlight as a consideration in selecting funding, starting from business potential, revenue, and conditions positive.

"We believe as a company or startup they can have social impacts positive even though their business is running fast. It is our thesis for impact funds. The hope is that we want to invest in startups that can support both. It's not that socially focused startups can't benefit. That is our point through this funding," said Alvin.

In the future Alvin sees impact funds or funding based on ESG (Environmental, Social, and Governance) values ​​will have a positive future.

ESG does not always focus on social and environmental aspects, but also touches on governance, so as to minimize the occurrence of fraud and monitor potential startups that violate the rules.

"I believe ESG will have a promising future in the Indonesian startup ecosystem, because we think startups have started to look in that direction."

People care more

Di articleDailySocial previously noted, the shift in people's behavior will affect business actors in sustainable issues. Startups that focus on environments like Breath up to the platform food waste managementSurplus has proven that current conditions have given rise to new habits and general public awareness of health and application waste management right.

"The future of this category is clear. Science has confirmed the urgency of a number of environmental issues that could result in the growth of profit-oriented business models that will focus on avoiding harm to our planet," said Co-Founder & Chief Growth Officer, breath Piotr Jakubowski in an interview.

Managing Director of PT Ekonomi Circular Indonesia Muhammad Agung Saputra separately said, "Unlike other platforms, in particular, Surplus is not only as a food market which sells food products like some other players, but the concept is only to sell excess food products and imperfect product to customers, to solve problems food waste."