Cheng also offers this insight: “Family offices will overtake venture capital as the largest source of funding for impact entrepreneurs in Asia over the next decade. This new generation of wealth holders sees impact differently from prior generations. Instead of just giving money away through philanthropy, they are becoming impact investors who see investment as a tool for driving positive social and environmental impact alongside wealth creation.”

He also notes that more large corporate players like Tencent, Grab and Samsung have funded Asia’s impact startups in recent years. “They have the deep pockets, market expertise and brand power to help you succeed.”

Read more: Grab partners with OpenAI to develop advanced AI solutions for Southeast Asia

“Amongst our Asian family office community, climate tech and natural capital investments focusing on climate change mitigation and adaptation are gaining major traction as the region is particularly vulnerable to these issues,” says Katy Yung, managing partner of the Sustainable Finance Initiative, a Hong Kong-based community of private investors.

Yung observes that Asian family offices in Hong Kong and Singapore, with backgrounds in real estate or manufacturing, are interested in startups that use advanced or upcycled materials to develop new products and technology focused on waste reduction. There is also a growing interest in companies addressing issues related to agricultural practices and supply chains, such as reducing greenhouse gas emissions and water consumption in the region.

Read more: 5 eco-warriors repurposing plastic for good

Ramanan Raghavendran, managing partner of venture capital firm Amasia, says it’s crucial for startups to provide clarity around the impact of their businesses during fundraising. “Key barriers to climate and impact investing today are concerns around data availability and uncertainty around impact definitions and frameworks.” 

Raghavendran explains that although it is difficult to collect data at the early stage of business, the founding teams should illustrate a detailed roadmap through a “theory of change” model that includes the resources the company requires, its action, output, outcome and impact. They should also give details of their impact assessment method and any relevant international standards.

Read more: Recently Funded: What Allies of Skin’s Nicolas Travis learnt from successfully raising $20 million

For startups to succeed, certain critical factors include the total commitment of the founders to their mission and their teams’ ability to adapt and bring their vision to life. Sonalie Figueiras, who built sustainability and impact media Green Queen, says that businesses that carry all these qualities are rare.

Read more: “It’s not an if, it’s a how”: Green Queen founder Sonalie Figueiras on ending industrial animal agriculture

Besides getting the fundamental part right, Figueiras, a Gen.T Leader of Tomorrow from 2019, suggests startup founders keep track of their financial situation. “How much runway do they have? Then, try to seek out alternative funding sources—Now’s the time to apply for grants and other non-dilutive investment,” she explains.

A company may need to cut costs after an objective and realistic assessment. “This can mean letting go of some great hires or lowering marketing budgets which is painful,” the entrepreneur says.

Meet the Gen.T Leaders of Tomorrow 2024.

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