Touchstone Partners Launches US$10M Fund to Accelerate Southeast Asia’s Green Transition

With a US$10 million Green Transition Fund, the VC firm is adopting a blended finance model to scale climate innovation across the region.

Touchstone Partners, a Southeast Asia-focused venture capital firm, has launched a US$10 million Green Transition Fund to accelerate climate-tech innovation across Vietnam and the region. The fund will target startups in sustainable agriculture, circular economy solutions, waste management, and new energy technologies. Deployment is set to begin in December 2025, with portfolio companies set to receive not only capital but also mentorship and operational support from Touchstone’s advisory network.

The firm views Vietnam as a strategic entry point for scalable green solutions, supported by a growing entrepreneurial base and an increasingly supportive policy environment.

A Track Record That Signals Commercial Potential

Since 2021, Touchstone Partners has developed a strong climate-tech track record in Asia, investing in companies such as Enfarm, Forte Biotech, Selex Motors, Neorice, Stride, and Alterno. These startups are helping farmers and small businesses adopt sustainable practices while proving that climate-focused solutions can generate viable returns.

Several of these companies have expanded into regional markets including China, Japan, Indonesia, Malaysia, the Philippines, and Thailand—an indicator that Southeast Asian climate innovation can scale beyond national borders.

Touchstone believes this validates its “high-impact, high-return” investment thesis and signals that climate-tech is entering a commercially viable phase in the region.

A Blended Finance Model to De-Risk Climate Innovation

A notable aspect of Touchstone’s strategy is its blended finance approach. The firm collaborates with organisations such as Temasek Foundation, P4G, and the Global Green Growth Institute to structure financing that combines venture investment with non-dilutive grants.

Between 2023 and 2025, startups in its portfolio secured more than US$3 million in catalytic funding through these collaborations. The Green Transition Fund is designed to expand this model, enabling investors to de-risk capital allocation while helping startups scale responsibly.

Agriculture: A Key Region for Transformation

Agriculture remains one of Southeast Asia’s most important economic sectors and its highest-emission segment. It accounts for:

• 30 percent of regional employment
• 54 percent of total emissions
• 31 percent of all land use
  

A recent Project Drawdown assessment, conducted with the Asia Philanthropy Circle, identified Vietnam’s most urgent opportunities in rice production and converting agricultural waste into value-added products. These areas align closely with the categories targeted by the new fund.

Policy Momentum Is Accelerating Market Readiness

Vietnam’s policy direction has become increasingly supportive of climate innovation. Following its commitment at COP26 to reach net-zero emissions by 2050, Ho Chi Minh City implemented Resolution 98 to expedite the testing and deployment of green initiatives. National frameworks are also emerging to strengthen climate resilience, promote low-carbon urban planning, and drive private-sector participation in green growth.

These measures create the enabling conditions needed for climate-tech startups to expand from pilot testing to commercial deployment.

An Ecosystem Reaching an Inflection Point

General Partner Tu Ngo noted that while Southeast Asia faces some of the world’s most severe climate pressures, it also possesses the innovation capacity to respond. According to her, both government and corporate stakeholders increasingly view sustainability as critical to long-term economic resilience. This convergence of policy, capital, and entrepreneurship suggests that the region may be approaching a strategic turning point in its green transition.

Conclusion

The Green Transition Fund represents more than a new VC initiative; it reflects a maturing climate-tech ecosystem rooted in policy alignment, blended finance, and regional ambition. With Vietnam serving as a testbed for scalable sustainability solutions, Touchstone Partners is betting that the next wave of climate innovation in Southeast Asia will be driven not only by technology—but by collaboration across capital, industry, and public policy.

If its model proves successful, it may provide a roadmap for how climate-tech ventures can scale across emerging markets while delivering both impact and returns.

Quick Takeaways

• Touchstone Partners has launched a US$10 million Green Transition Fund focused on climate-tech innovation.
• Deployment begins in December 2025, targeting agriculture, circular economy, waste management, and energy technologies.
• The firm has backed several leading climate-tech startups that have already expanded beyond Vietnam.
• A blended finance approach combines venture investment with catalytic grant funding to reduce risk.
• Policy support, particularly through Resolution 98 and COP26 commitments, is accelerating Vietnam’s climate readiness.