New USD10 million impact fund launches in Indonesia to promote women entrepreneursNews Stories Press Releases /20 July 2020
Jakarta, Indonesia, 20 July 2020 – Investing in Women is supporting the establishment of the Indonesia Women Empowerment Fund (IWEF) to address barriers to women’s economic empowerment by investing in disruptive tech solutions led by women entrepreneurs. The targeted USD 10 million fund is jointly managed by YCAB Ventures and Moonshot Ventures, with Investing in Women as sponsor investor.
Recent research from the Mckinsey Global Institute indicates that barriers to women’s economic participation translate to a potential loss for Indonesia of up to USD 135 billion by 2025. And many of Indonesia’s 30 million women entrepreneurs face ongoing struggles, particularly with lack of access to appropriate capital, in growing their businesses, despite forming the brunt of the country’s burgeoning SME sector.
“We need to tackle the underlying issues, which include barriers for women to grow their businesses. Providing women entrepreneurs with capital is a critical part of the solution, but we need to complement this with addressing the broader problems that prevent women from participating more in the economy. IWEF will aim to do this through investing in women-led startups that are breaking down these barriers with disruptive tech solutions,” said Stella Tambunan, CEO of YCAB Ventures; and Edgar Xie and Tom Schmittzehe, founders of Moonshot Ventures. A formal launch of the IW-IWEF partnership will take place as conditions permit.
IWEF will invest in 20-30 seed stage ventures over the next five years, which will also benefit from training and technical assistance. Investing will begin immediately, while fundraising for the fund’s USD 10 million close progresses. Investors are expected to come from Indonesia and across the region and will benefit from de-risking features, including first loss protection and preferred returns, provided for by Investing in Women as the fund’s sponsor investor. The fund will be led by a gender-balanced investment team with deep local experience.
“Investing in Women is excited to partner with both YCAB Ventures and Moonshot Ventures on IWEF, which will increase liquidity and strengthen the business case for investing in women’s SMEs during this critical period of COVID-19 response and recovery. This partnership can play an important role to stimulate economic recovery for long-term resilience in Indonesia,” said Julia Newton-Howes, CEO of Investing in Women.
IRIS GOKEELAO, Partnership Coordinator, Impact Investing, Investing in Women, +63 2 5304 9153, firstname.lastname@example.org.