Terratai: Asia's first venture builder to tackle nature and biodiversity loss

We cannot have healthy, prosperous societies if we don’t protect the natural systems on which they depend. To achieve this in the long term, we need a transformational shift in how we value nature within our economies. Actions that are designed to protect, sustainably manage or restore natural or modified ecosystems to address climate change and biodiversity loss - also known as nature-based solutions "NBS"- offer the most impactful pathway to reduce ASEAN’s emissions. They can also address the economic inequalities that underpin the drivers of ecosystem loss.

However, NBS are severely under-funded. According to a 2020 estimate by the Nature Conservancy, the current funding gap for conservation and ecosystem restoration is as high as USD 824 billion per year, and is widening year on year. This gap cannot be closed by philanthropic and donor financing alone - the only viable solution is to mobilise more capital from private investors.

Terratai, Asia’s first “venture builder for nature”, is designed to identify, co-create and scale early-stage nature-based companies that can tackle the systemic challenges driving nature and biodiversity loss in Asia. Terratai’s team provides the tailor-made resources, expertise and early-stage investment needed to foster the growth of these companies until they can reach scale and attract institutional capital, with a typical minimum engagement of two years. Along with access to its venture-building and service provision model, Terratai provides venture partners with direct financing (through loans, equity, revenue shares or other instruments) and/or “sweat equity”, tailoring investment to the needs of each company.

One element of the suite of solutions Terratai supports is the Jembatan (which means “Bridge” in Bahasa Indonesian), a tailored working capital financing solution based on a revolving loan. The Swiss Re Foundation now funds the revolving loan facility as well as Terratai’s overall operations.

Terratai will build a vibrant movement of investable opportunities that demonstrate the broad viability of NBS business models and the positive impact they can have on environmental challenges in Southeast Asia. Terratai’s approach reflects the urgency of the nature and climate crises and the need for patience in developing the complex solutions required.

Terratai’s primary goal under this grant is to support the development of NBS companies in Indonesia. Expected impacts include:

• Enhanced protection or restoration of biodiversity and natural ecosystems.
• Enhanced resiliency of ecosystem services, particularly ones that support livelihoods, and mitigation of climate and disaster risks.
• Increased economic resilience of communities adjacent to areas of high ecological importance – via job creation, improved food security, skills development and financial access.

Terratai

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