Touchstone Partners has launched a new $10-million climate fund to invest in sustainable agriculture, circular economy, waste management and new energy technologies in Vietnam and Southeast Asia.
The fund, named Green Transition Fund, will start deploying capital next month, the Vietnam-based early-stage venture capital (VC) firm said.
Climate innovation has been a central theme in its investment, with investee companies such as Selex Motors, Stride, Alterno, Enfarm, Neorice, and Forte Biotech.
Touchstone claimed its portfolio has demonstrated the “high-impact, high-return” potential of the new green economy. Alterno, Enfarm and Forte Biotech – for example – have expanded into other Asian markets, it said.
The VC firm also collaborates with international grant funders, including Temasek Foundation, P4G, and the Global Green Growth Institute. Between 2023 and 2025, companies within its climate-tech portfolio attracted over $3 million in catalytic funding through these partnerships.
“The new Green Transition Fund will continue trusted partnerships with international philanthropy to structure efficient blended finance,” the firm said.
In 2023, Touchstone Partners and Temasek Foundation co-launched the Net Zero Challenge to help close the funding gap and strengthen Vietnam’s climate-innovation landscape, which has to date received over 1,600 startup submissions across 60 markets.
This year’s cohort saw four startups raise 20 billion dong ($760,000) from grant providers and investors, including Touchstone, Vietnam-based AiViet Ventures, Singapore-based family office 38M Ventures, and Sembcorp Industries.
“While most impacted by climate change, Vietnam and Southeast Asia also flourish with advanced agriculture and adaptation innovations. The ecosystem is resilient and entrepreneurial, with the public sector and conglomerates realising the green economy is a must to continue our growth trajectory,” noted Tu Ngo, General Partner at Touchstone Partners.
The firm cited data that agriculture provides 30% of jobs, utilises 31% of all land, and is responsible for 54% of emissions in Southeast Asia.
Vietnam, particularly, has established national frameworks to strengthen climate resilience, promote green urban planning, and accelerate low-carbon economic growth from the private sector across the country.
In 2023, DealStreetAsia reported that Touchstone was looking to raise a second early-stage fund. Its first fund was a $50-million vehicle launched in 2021.
Touchstone was founded by Khanh Tran, former founding partner of VinaCapital Ventures, and serial entrepreneur Tu Ngo.
