How Quantum Ventures Combines Corporate Strategy and Venture Building To Drive Climate Innovation
In the fight against climate change, Quantum Ventures (QV) takes a distinctive approach – acting not just as an investor, but as a corporate venture builder dedicated to sustainability.
As part of Indonesia’s Bakrie Group, Quantum Ventures focuses on creating and scaling startups that align with the group’s net-zero goals. Through its corporate-backed sustainability ventures, Quantum Ventures is not only generating financial returns but also setting a bold example of how corporations can lead the way toward a greener, more resilient future.
Berdaya Talk is an initiative that explores the stories of change makers and the initiatives they have developed to support sustainable development in Indonesia. This time, we are joined by Benny Tjia – Managing Director at Quantum Ventures.
Tell us more about Quantum Ventures and how you got into the world of impact investing
Quantum Ventures did not emerge in the conventional sense of a venture capital firm; rather, it was initiated by Anindya Novyan Bakrie, President Director of Bakrie & Brothers (BNBR), as the corporate venture arm of the Bakrie Group.
Structurally, Quantum Ventures operates under three strategic pillars – corporate venture building, advisory, and through a lesser extent, venture capital. Quantum Ventures aims to drive financial return while supporting the Bakrie Group’s sustainability goals through these targeted investments and support functions.
Personally, I was exposed to the world of impact investing through an investment committee role in Mandiri Capital’s Impact Fund, representing Bakrie Group which was acting as one of the key LP investors in the fund.
Aligning Strategy with Corporate Transformation Goals
Quantum Ventures mainly focuses on corporate venture building as a strategy to generate outsized financial return and impact, with sector choices driven primarily by strategic fit to Bakrie’s net zero corporate transformation goals.
For example, each portfolio company – such as VKTR, Helio, and Modula3D – represents Bakrie’s net-zero transformations across different business units like Autoparts, Power, and Building Industries.
This close integration allows Quantum Ventures to foster transformative business models directly within Bakrie Group, rather than fitting into external frameworks such as the UNEP’s six-sector solution (which is regardless, a good starting point for corporations looking for references to achieve net-zero goals).
Supporting Bakrie’s Net-Zero Transformation
Quantum Ventures has played a pivotal role in Bakrie Group’s journey toward its net-zero goals. Key corporate startups, such as VKTR, Helio, and Modula, were identified and nurtured with targeted support from Quantum Ventures. This support included:
- Strategic Guidance: Quantum Ventures collaborates closely with the founding teams to ensure business strategies are aligned with Bakrie Group’s sustainability objectives.
- Operational Expertise: From resource allocation to operational scaling, Quantum Ventures provides critical operational backing to help startups achieve commercial success.
- Financial Investment: Strategic capital injections allow these startups to execute their visions and expand their operations.
- Network and Ecosystem Access: With Quantum Ventures’ connections to industry experts, investors, and stakeholders, portfolio companies gain access to resources that catalyze growth.
To illustrate, Anindya Bakrie, actively advocated for policies to bring EV buses onto Indonesian roads. This was a pivotal moment, as it happened back in 2019, before Quantum Ventures was established, and may have been the “aha” moment that ultimately led to its creation. Through collaboration with Anindya Bakrie, Quantum Ventures extensively contributes to policy shifts that enables Indonesia’s public transportation sector to adopt electric vehicles.
Measuring Impact in Climate Tech Investing
To ensure meaningful contributions to sustainability, Quantum Ventures sets sector-specific KPIs for each portfolio company. For instance:
- VKTR: Measures the number of deployed electric vehicles and the corresponding greenhouse gas reductions.
- Modula3D: Evaluates reductions in material waste, construction time, and structure quality in its 3D printing initiatives.
- Helio: Tracks solar energy production and the use of EV charging infrastructure.
Overcoming Challenges: Bridging Interests Across Stakeholders
Climate tech operates at the intersection of diverse stakeholder interests from corporates and entrepreneurs to investors and policymakers. Recognizing the unique priorities of each party, Quantum Ventures aims to foster win-win collaborations by:
- Defining the Problem Space: Identifying the specific climate or sustainability challenge the startup aims to solve, ensuring that all parties are aligned around the core mission.
- Understanding Economics & Business: Diving into the business model and economic viability to ensure that both the startup and corporate partners see a clear path to financial sustainability.
- Creating Synergy: Explore strategic fit between the startup and the corporate partner, crafting an investment thesis that highlights mutual benefits and growth opportunities. Here, the question becomes - how can we help the startups scale up its climate solutions meaningfully by partnering with any of our business units, leveraging our group’s assets and resources? If so, what would be the economic benefits to our business units?
Bakrie Group also maintains close relationships with state organizations e.g., KADIN (Indonesian Chamber of Commerce and Industry), ensuring they stay informed on evolving regulations that could either support or hinder the development of climate tech solutions.
Working With Climate Tech Founders
In the world of climate tech, Quantum Ventures emphasizes certain traits that are essential for founders to thrive in a challenging and evolving landscape. These include:
- Expertise and Adaptability: Founders need to possess in-depth knowledge in their field to understand not only the problem space but also their competitive positioning and evolving industry standards.
- Passion for Climate Action: A strong commitment to addressing climate change helps founders navigate the sector's inherent challenges and persevere through long timelines.
- Vision Paired with Pragmatism: Quantum Ventures looks for founders with big ambitions but grounded in practical, achievable short-term goals that allow for incremental growth.
- Execution Skills: Execution is crucial, as founders must lead everything from product development to navigating supply chain and regulatory challenges.
What do you think about the balance between pursuing large market opportunities and working with exceptional founders?
In the debate between prioritizing market size and team strength, Quantum Ventures places greater emphasis on exceptional founders. A highly skilled and experienced team can maneuver through market limitations and often find growth opportunities.
In many cases, focusing on niche markets allows for faster product-market fit, which serves as a strong foundation for later expansion.
What are some exciting trends you are on the lookout for in climate tech?
There are a few, but I’d expect to see more things happening in the energy storage industry. The development of advanced energy storage technologies, such as batteries and hydrogen fuel cells, is crucial not only for green mobility, but also for grid stability and the widespread adoption of renewable energy.
Furthermore, I also see exciting work being done to deploy and scale more non-intermittent energy sources by leveraging existing technologies like nuclear and geothermal. While some of these innovations are probably much further than solar and wind in terms of commercialization, they should be helpful in providing a solution to better energy reliability.
For those looking to break into climate tech or impact investing, what advice would you give to someone starting out today, especially in a region like Indonesia?
Given the vast and diverse nature of climate tech, I’d advise focusing on a specific sector. Whether it’s renewable energy, electric vehicles, sustainable agriculture, or carbon capture and storage, deep expertise in a particular area can be a significant advantage.
If people want to learn more about Quantum Ventures, where can they find you?
Learn more about Quantum Ventures and their works here:
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