Four startups receive $790,000 in funding at Net Zero Challenge

Four startups receive $790,000 in funding at Net Zero Challenge

The Net Zero Challenge 2025 concluded on November 21 with $790,000 in combined catalytic grants and investment prizes awarded to outstanding startups, which will pilot innovative climate technologies in Vietnam.

The catalytic funding will support innovative solutions that address the world’s pressing challenges in renewable energy, sustainable agriculture, and circular economy solutions.

Co-organised by Touchstone Partners and Temasek Foundation, in partnership with the Ho Chi Minh City Institute for Development Studies (HIDS), the Net Zero Challenge is an annual global climate innovation platform that identifies and supports global technology startups with the potential to contribute to Vietnam’s green transition, laying the foundation for regional scalability.

This year, the challenge received over 700 applications from more than 60 countries and territories, making it the most competitive edition since its inception in 2023. Nine finalists presented their solutions at the Grand Finale in Ho Chi Minh City, showcasing technologies ranging from AI-enabled to nature-based solutions across key themes in renewables, agriculture, waste management.

This year’s programme was supported by a diverse group of partners, including leading corporates and venture capital firms with a focus on climate and deep-tech innovation. Strategic partner GS Engineering & Construction joined the challenge for the first time. Key investor partners included AiViet Ventures (a Vietnam-focused VC firm backing high-impact tech-based startups), 38M Ventures (Singapore-based family office investing in with triple bottom line companies), and Sembcorp Industries (leading energy and urban solutions provider).

The Grand Prize winners included Alcarbo Technologies from Hong Kong, China; Shoes Agtech; and Vietnam Food from Vietnam. Alcarbo Technologies was the winner of Track 1 – Renewables and Carbon Removal. The startup specialises in automated algae systems that convert carbon into valuable products using only 1 per cent of the energy compared with traditional methods.

Shoes Agtech was the winner in Track 2 – Food Systems and Sustainable Agriculture. The startup provides an ultralight farming robot that automates seeding, spraying, and fertilising to reduce agricultural carbon by 70 per cent.

In addition, Vietnam Food was honoured in Track 3 – Circular Economy and Waste Management. The startup is a pioneer in nutrient recovery innovation, capturing up to 80 per cent of nutrients from food wastewater for cost-competitive circular regeneration.

Two Vietnamese startups were also recognised as Investment Prize recipients. Vietnam Food secured a $150,000 investment from 38M Ventures, AiViet Venture, and Touchstone Partners, while Shoes Agtech received a $50,000 cash prize from Sembcorp Industries.

“Vietnam stands at a crucial point in its sustainability journey. At Touchstone Partners, we believe early-stage climate technology investment not only drives innovation but also strengthens the foundation for long-term economic resilience,” shared Tu Ngo, general partner at Touchstone Partners. “Through the Net Zero Challenge and our upcoming investments, we aim to nurture visionary founders tackling complex environmental challenges with scalable, impactful solutions.”

“Net Zero Challenge 2025 continues to be a powerful climate-tech platform to spotlight the next wave of bold and practical environmental innovations. Temasek Foundation is proud to be part of this inspiring movement as Asia accelerates its net-zero transition for a more sustainable and resilient future. Congratulations to these trailblazers who pave the way for real and scalable impact. This reaffirms our commitment to building lasting partnerships with governments, businesses, investors, and innovators to advance solutions that create impact for the people and planet,” shared Heng Li Lang, head of climate and livability at Temasek Foundation.

The Net Zero Challenge aims to address the gap in catalytic funding for climate solutions and foster collaboration in Vietnam. In partnership with Temasek Foundation, Touchstone Partners also provides mentorship, market access, and local partnerships to help innovators scale their technologies for real-world impact in Vietnam.

At the Grand Finale of the Net Zero Challenge 2025, Touchstone Partners also announced the launch of a new $10 million Green Transition Fund. The fund will invest in startups and innovations in sustainable agriculture, circular economy, waste management, and new energy technologies in Vietnam and Southeast Asia. Deployment is scheduled to begin in December. Startups will also receive direct coaching and strategic support from Touchstone and its network of advisors.

Since 2021, Touchstone Partners has been the pioneering investor in climate innovations in Asia, backing leading companies such as Selex Motors, Stride, Alterno, Enfarm, Neorice, and Forte Biotech. The firm’s climate-technology portfolio has consistently outperformed while supporting Vietnamese small- and medium-sized enterprises and farmers to leapfrog to sustainability, reinforcing the “high-impact, high-return” potential of the new green economy. Alterno, Enfarm, and Forte Biotech notably have successfully expanded into China, Japan, Indonesia, Malaysia, the Philippines, and Thailand.

In addition to equity investments, Touchstone Partners collaborates closely with leading 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 investment offers to startups, helping investors de-risk while nurturing startups with non-dilutive grants coupled with result-driven investments.

“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. We’re standing at a turning point on our sustainability journey,” Ngo stated.

VIR