CLIMATE tech venture builder Wavemaker Impact announced the final close of US$60 million for its first fund on Tuesday (Dec 5), more than 2.5 times its initial target of US$25 million.

Limited partners (LPs) include international development finance institutions and impact investors, such as the United States International Development Finance Corporation, the British International Investment and the Dutch Good Growth Fund (DGGF). Regional LPs include Thailand’s KBank’s venture arm.

“Climate change is no longer merely a problem of technological development, but also of technology adoption, particularly in emerging markets,” said Sonia Srikuruwal, investment manager for DGGF.

The additional capital will be used to expand Wavemaker Impact’s portfolio and make follow-on investments in its best-performing companies till their Series B funding rounds.

The fund’s focus is on startups supporting the decarbonisation efforts in South-east Asia via technology that tackles climate change issues.

Wavemaker Impact has launched and invested in six companies, such as WasteX, dealing with agriculture waste, and Rize, a platform for reducing methane emissions in rice cultivation. The other four are currently in development. The firm said it is on track to finalise its 10th investment by year-end.

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Wavemaker Impact is part of the venture capital firm, Wavemaker Group, which includes Wavemaker Partners. By 2035, the venture builder aims to lower the global carbon budget by 10 per cent.

“There is a paradigm shift in the investor community’s perspective, with a growing belief that climate tech ventures can be profitable, high growth investments that significantly contribute to the fight against global warming. We look forward to working with all our LPs to realise this vision,” said Marie Cheong, founding partner of Wavemaker Impact.