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Vertex Ventures SEA & India hits final close of Fund V at US$541M

The Vertex Ventures Southeast Asia & India team

Vertex Ventures Southeast Asia and India has closed its fifth and newest fund with commitments of US$541 million, exceeding its original target of US$450 million.

Vertex Ventures Southeast Asia and India Fund V (VVSEAI Fund V) is backed by existing and new LPs, including sovereign wealth funds, financial institutions, corporates and family offices across Asia and Europe. Japan Investment Corporation, International Finance Corporation (IFC) and DEG (German Development Finance Institution) are some of its LPs.

The fund corpus includes a dedicated co-investment envelope of US$50 million for co-investing alongside the main fund in female-founded startups. More than 35 per cent of the startups in VVSEAI Fund IV have at least one female founder, and this envelope will be used to further the fund’s intention of supporting more women entrepreneurs.

The final close comes on the heels of Vertex Ventures’s exits from Grab, FirstCry, XPressBees, and Recko.

Also Read: ‘SEA needs to grow together and produce more quality unicorns’: Vertex Ventures’s Carmen Yuen

Vertex Ventures Southeast Asia and India invests in high-growth startups seeking their early round of institutional funding, with a primary focus on Singapore, India, Indonesia, Thailand, Vietnam, Malaysia and other emerging hubs across the region.

Since its launch, the VC firm has made more than 80 investments. It will continue investing in early-stage technology and technology-enabled companies in sectors such as enterprise technology, fintech, consumer internet, digital health, sustainability, mobility, etc.

Vertex Ventures has eight investing partners with 22 investing staff across its offices in Singapore, Bangalore, Jakarta, Bangkok, Ho Chi Minh and Gurgaon.

VVSEAI is one of six major funds in Vertex’s global network of VC funds. Each of these funds focuses on its respective region and industry specialisation and is independently managed. They raise the majority of their funds from global investors, with Vertex Holdings as the anchor investor.

Vertex Holdings is a wholly-owned subsidiary of Temasek Holdings.

Image Credit: Vertex Ventures Southeast Asia and India

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Revamped Innovate page: Innovation opportunities, impact, solutions, and partnerships

Leading the ecosystem in providing innovative and bespoke solutions to engage the community is e27. With e27’s deep network and program management expertise, brands have leveraged e27’s community to help them achieve their programs and business goals.

Previous projects include The BIG LEAP with Clevertap, SAFE STEPS Disaster Tech Awards with JETRO, and the Community Accelerator Program with Meta, among others. These bespoke programs have brought together crucial innovation stakeholders in the ecosystem, engaging with these organisations to elevate discussions on certain matters, highlight key aspects of the industries, and provide opportunities to the rest of the ecosystem.

Also read: Revamped Advertise page: Clearer value messaging, impact metrics, new partners, testimonials, and project showcase

Here are the updates to e27’s Innovate page

Clearer value messaging

To explain Innovate in an easy-to-understand manner, we have highlighted e27’s value-add that it can bring to an organisation’s project or goal through visuals and straight-to-the-point descriptions. A carousel of its previous clients is also showcased.

e27’s ecosystem engagement reach

We’ve helped clients reach new horizons around the region. e27’s deep network and engaged community open doors to new opportunities and markets for organisations we work with. To showcase these, we have revamped the way we present e27’s reach with an easy-to-understand visual representation of e27’s reach.

Highlighting previous projects

To help organisations visualise potential solutions that they can co-create with e27, we have showcased our previous projects in cards filled with descriptions of what was delivered and the impact they have created.

Testimonials and partners showcase

e27 is proud to present its previous partnerships with organisations that have trusted their programs with e27’s expertise and network to achieve their goals. Read what our partners have to say about these programs in this section.

Work with e27

Leverage e27‘s community, deep network, and program management expertise to provide customized innovation and bespoke solutions to help you achieve your program and business goals.

Learn more about Innovate here.

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Hydroleap revolutionises wastewater treatment, leading industries into a sustainable future

Hydroleap’s wastewater treatment facility

Recycling and reusing industrial wastewater is an important aspect of water conservation, but it comes with various unique challenges. The industrial wastewater itself is highly polluted; there is also a problem with the existing treatment methods, which often involve heavy use of chemicals and are energy-intensive. Apart from that, these conventional methods also generate secondary toxic sludge.

“The challenge for industrial wastewater treatment is that it needs to be tailored to respective industries, varying water qualities and unique customer problems, thereby requiring in-depth expertise, market knowledge and experience,” explains Hydroleap Founder and CEO Mohammad (Moh) Sherafatmand in an email to e27.

This is where Hydroleap comes in with its industrial wastewater treatment solutions.

“Our solutions are helping water-intensive industries move away from chemical and energy-intensive processes. Instead, utilising advanced electrochemical technologies to enhance purification performance and water quality without any need for chemicals or high energy,” he says.

He further explains that the Hydroleap solution is based on advanced electrochemical technologies such as Electrocoagulation (HL-EC) and Electrooxidation (HL-EO), which present a shift from traditional chemical-based and energy-intensive methods.

Also Read: How Third Derivative assesses the impact of a potential climate tech investment

This leads to an enhanced operational outcome, financial savings and environmental benefit.

“These can reduce up to 95 per cent of pollutants in industrial wastewater. Due to automation, modularity and high treatment capabilities, we manage to reduce man-hours by up to 95 per cent and cost of ownership by 30 per cent for industries,” the CEO says.

Capturing the audience

Sherafatmand explains that Hydroleap serves a diverse array of customers, spanning public organisations, government enterprises, and private sector entities across various industries. Some of its key commercial clients include significant players in the food and beverage industry, cooling towers, and data centres.

“We work with Universal Robina, one of the largest branded consumer food and beverage product companies in the Philippines; CapitaLand, one of biggest developers in Asia; one of the blue-chip companies (data centres) and Shanaya, a local recycling company in environmental services,” he shares.

The CEO states that a three-pronged approach underpins the company’s acquisition strategy.

“Firstly, we leverage our lab intelligence and skill to offer unique solutions that address traditional issues like ineffective water impurity removal and high energy requirements. Secondly, we concentrate on industrial sectors, which are a significant consumer of water, often more so than domestic use,” he says.

“Thirdly, we build solid collaborative relationships with the regional water ecosystem. For example, we have been working closely with the Public Utilities Board, Singapore’s Water Agency, over the past few years on a desalination project which has resulted in 40 per cent fouling reduction on the membrane systems.”

Also Read: Preference for green jobs is the “most exciting” climate tech development: Lightspeed

For Hydroleap, while this project’s primary objective is securing a sustainable freshwater supply for Singapore in the face of rising sea levels and climate change, it is also an avenue for the company to enhance operational efficiency with its proprietary electrical technology.

“Lastly, with the ESG spotlight becoming brighter, water-intensive industries are looking for environmentally friendly ways to manage water and wastewater treatments.”

The company offers its solutions through two business models: Lease and capex.

Coming up with the solutions

When asked about how Hydroleap builds wastewater treatment solutions, Sherafatmand explains that the company started off early stage development of its technology by resolving “some of the well-known challenges in the electrochemical world” such as corrosion and high power consumption.

“Once we found solutions to those, we began building pilot and bigger systems to test the reliability and consistency of the technology,” the CEO says.

“Our technology has been a continuous effort and always work in progress to bring new innovations and features to firstly, solve more challenges and also build a clear competitive edge for Hydroleap.”

Currently, Hydroleap says that it has a “strong” dataset and knowledge of some of the industries that help it develop a reliable solution in a short time. For verticals that the company has less experience in, Hydroleap approaches it by looking on a case-by-case basis.

Also Read: TRIREC Partner Mike Lim: Interest in climate tech investments remains buoyant despite challenges

“We usually begin by assessing water quality which involves lab-scale experiments on water samples provided. After this we determine how our technologies can treat it by running electrochemical treatment processes under controlled conditions. While doing so, there are various assessment parameters and considerations, such as flow rate, discharge limit, and reuse requirements of the customer,” Sherafatmand says.

“We are continuing to innovate to advance and apply these technologies to more industries, for example, the palm oil industry that generates highly polluted Palm Oil Mill Effluent (POME). There is a huge potential to build on current solutions to make them smarter and intuitive, apart from improving water purification efficiencies.”

On the way to make a difference

In order to make its ambition come true, Hydroleap is currently expanding its team from 15 to 20 within the upcoming months.

Following a US$2.4 million funding round in 2019 that helped the company build the foundation of its solutions development and initial operations, Hydroleap has raised a US$4.4 million Series A funding round this year.

“We plan to scale up our capabilities and make headway into new markets such as Australia, Japan, and Indonesia over the next two years. Our focus is on supporting businesses across various industries – including data centres, F&B, mining, and manufacturing – with best practices for wastewater treatments and management,” Sherafatmand says.

“We will strengthen and build a strong world-class R&D and operation teams in Singapore and Australia. This involves establishing Hydroleap’s manufacturing and R&D presence in Victoria in the time to come.”

Also Read: What is left behind in our conversation on climate change

Apart from that, Hydroleap is looking to set foot in a new vertical for POME.

“[It] poses one of the most challenging problems to the wastewater treatment industry due to its adverse effect on the environment and high degree of oil and organic content,” Sherafatmand closes.

Image Credit: Hydroleap

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Temasek, NUS, NTU to invest US$55M in deeptech startups in Singapore

The Nanyang Technological University, Singapore (NTU Singapore), the National University of Singapore (NUS), and Temasek have launched a joint S$75 (US$55) million pilot programme to accelerate the creation of successful deep-tech startups from the pipeline of research at NTU and NUS.

Temasek will invest S$65 (US$48) million, mostly through its early-stage deep-tech investing platform Xora Innovation, in deeptech startups, while NTU and NUS will each invest S$5 million.

Temasek and Xora will collaborate with NTU and NUS to launch and build globally competitive ventures with strong potential to address large global market opportunities in energy transition, biotechnology, and the future of computing and cognition.

Also Read: Singapore’s seed and early fundings in Aug 2023 drop 30 per cent from July: Tracxn report

In addition, the two universities will develop a common Intellectual Property (IP) licensing framework, which will expedite the licensing and translation of university technologies for spin-off companies. The outcome will be a shorter process of one month instead of the usual period, which can take up to five months.

Xora’s team of deep tech founders will collaborate with the IP and technical teams from the universities to develop and hone their go-to-market strategies.

NTU and NUS will also develop a unified online platform to provide potential licensors with a one-stop shop to identify and select IPs from both universities that align with their business requirements.

Furthermore, Temasek, NTU, and NUS will also provide the startups access to their networks of businesses and mentors. At least two startups will be launched annually and provided entrepreneurial mentorship, funding, and support to position them for long-term global success.

The image used in this article is AI-generated.

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E-motorcycle adoption in Indonesia: How to tap into this US$19.2B opportunity

As the third largest motorcycle country in the world, Indonesia is ambitious with its e-motorcycle adoption target of 13.5 million by 2030. But this number is not unrealistic. Within the last two years, according to a white paper on electric vehicles (EVs) by Deloitte, the market has seen a 15.4 times increase in e-motorcycle ownership.

In 2022, there were already 25,782 e-motorcycles in Indonesia, with more than 1,500 swapping stations available per Q1 2023. However, this does not mean that the journey into e-motorcycle adoption is not without barriers.

There are three barriers to adoption for Indonesian consumers:

1. Inadequate energy distribution infrastructure, such as charging station availability, range anxiety, and charging duration, are hindering consumers from shifting to e-motorcycles.

2. Expensive price of the EV. According to the white paper, approximately 56.77 per cent of electric motorcycles are sold with upfront battery cost (charging model), which results in spiking prices for customers.

3. Reliability and performance of the current products. With motorcycles being the primary mode of transportation and a source of income for low to middle-income families, performance factors such as driving range, charging duration, and speed result in hesitation towards trusting e-motorcycles.

Also Read: Exponent Energy unlocks a zero to 100 per cent 15-min rapid charge for electric vehicles

The following table gives an explanation of the factors that affect consumers’ decisions:

Battery swapping is the way to go

Indonesia’s e-motorcycle industry showcases a US$19.2 billion opportunity from both the manufacturers and energy distribution standpoint, according to Deloitte.

The current e-motorcycle industry is dominated by startups that raised equity and debt financing from institutional investors such as venture capitalists and private equities, especially as OEM players deploy a “wait and see” approach to EVs.

Also Read: SLEEK EV secures funding from ORZON Ventures to advance affordable electric mobility in SEA

The report also stated that the battery-swapping model of e-motorcycles, as opposed to the charging model, has proven its compatibility in the market. Of the 25,782 e-motorcycles on the road, the battery-swapping model accounts for 43.23 per cent.

There are several benefits that might have drawn customers to the battery-swapping model, including the 10-second lag time to switch batteries (as opposed to the three or four hours with battery charging).

In order to help consumers switch to e-motorcycles, there are several forms of support that the government is providing. For example, since 2019, the Indonesian government has continually imposed regulations to incentivise consumers, reduce manufacturing costs, and accelerate infrastructures for electric two-wheelers to achieve its targets by 2030.

The subsidies to promote procurement include sales subsidies totalling ~US$455.8 million, which will be deployed in 2024, with combustion conversion subsidies amounting to US$339/unit to cover the conversion cost for electrical engines.

Image Credit: RunwayML

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