The Radical Fund, a climate-focused early-stage investor headquartered in Bangkok, has successfully achieved the first close of its climate tech fund, raising an initial amount of US$40 million.
The fund is specifically targeted at supporting early-stage startups in the Southeast Asia (SEA) region that are dedicated to addressing climate-related challenges. The Radical Fund operates under the Utopia Capital Management (UCM) group, supporting more than 130 startups in emerging markets.
According to a statement released by The Radical Fund, the firm is currently engaging in discussions with various stakeholders, including family offices, corporations, foundations, and institutional investors, to further enhance its fund. The fund has received backing from regional family offices in Singapore, the Philippines, and Thailand, as well as individual investors from Europe and the United States.
The investment focuses on early-stage startups operating in Southeast Asia (SEA) that are actively scaling climate adaptation and mitigation solutions. The fund specifically targets tech-enabled startups in the pre-seed, seed, and pre-Series A stages.
These startups should either be based in SEA or have a strong regional operational presence. The fund seeks startups that have the potential to deliver both scaled commercial returns and positive climate outcomes for the local and regional communities they serve.
In addition to climate tech startups, The Radical Fund also seeks to invest in non-climate tech startups with business models addressing climate concerns. These startups operate in agriculture, food, circular economy, finance, mobility, logistics, and other sub-sectors.
The fund recognizes that these ventures may not fit the traditional definition of climate businesses but have the potential to make a climate impact as part of their operations and ethos.
Furthermore, portfolio companies supported by The Radical Fund will receive financial investment as well as operational and technical assistance.
In a recently released media statement, Alina Truhina, CEO and managing partner of The Radical Fund, said, “Southeast Asia is one of the most adversely affected regions of the world when it comes to climate change, and yet investments are still predominantly going toward US and European ventures.”
The investment made by The Radical Fund comes at a time when green investments in the region have experienced a decline. The Radical Fund has set investment plans to support over 30 companies, with funding ranging from US$250,000 to US$800,000 per company.
In addition to capital investment, The Radical Fund distinguishes itself by delivering hands-on operational and technical support to its portfolio companies. The firm, consisting of a six-person team based in Bangkok and Singapore, with global members in London, is also expanding its workforce in the Philippines, Vietnam, and Indonesia.