The Asian Infrastructure Investment Bank (AIIB) stated that it will soon provide scarce capital to early-stage companies through small-scale venture capital (VC) funds, thereby promoting innovation in green and technology-enabled infrastructure across AIIB members. The bank has launched the AIIB Venture Capital Investment Program for green and technology-enabled infrastructure, mobilizing $130 million with an additional $30 million as a co-investment sleeve for its first inaugural VC program for sustainable infrastructure.
Despite the prolonged economic uncertainties in the global markets, VC investment has exhibited continued strength in South and Southeast Asia and collectively across the Caucasus, Central Asia, Africa and the Middle East. However, these regions are facing less representation, which invites further capital to bridge the funding gap.
“This is the first time since its founding that AIIB is entering the Asian venture capital market,” said AIIB Director General, Banking Department (Region 1), Dongik Lee. “The VC investment space is characterized by fast transaction speed, smaller average ticket size and a unique risk-return profile. The VC Program will help AIIB build strategic partnerships and diversify its equity portfolio by partnering geographically with reputable and seasoned VC fund managers.”
***
