Singapore Management University (SMU) announced the launch of the Urban SustaInnovator (USI) Fund, a US$10 million investment program created to support startups focused on urban solutions and sustainability across Singapore and Asia. The fund is designed to back ventures emerging from SMU’s flagship Urban SustaInnovator accelerator program, which began incubating its inaugural cohort in February 2026.
According to SMU, the USI Fund is believed to be Southeast Asia’s first university-anchored co-investment fund dedicated specifically to urban solutions and sustainability. The program is focused on helping early-stage deep-tech startups tackle major urban challenges, including decarbonization, energy transition, mobility, circularity, and the built environment.
The fund will invest in startups sourced through the Lee Kuan Yew Global Business Plan Competition, which attracted more than 1,500 applications from over 90 countries. Seven startups were selected for the inaugural accelerator cohort and are currently participating in the 12-month hybrid, non-residential, zero-fee, equity-free program.
SMU said the USI Fund will co-invest alongside established venture capital firms under market terms, with first investments from the inaugural cohort expected to begin by the fourth quarter of 2026. The university noted that the strategy is intended to provide catalytic early-stage capital while leveraging the expertise and commercial discipline of experienced venture investors.
The inaugural cohort has already demonstrated significant momentum. Qarbotech, a Malaysia-based nanotechnology company focused on agriculture, recently won the Grand Prix at SusHi Tech 2026 and secured a pilot project with Tokyu Fudosan Group. MacroCycle, a US-based startup developing chemical upcycling solutions for PET plastics, received backing from Volta Circle and was named a finalist at Temasek Foundation’s The Liveability Challenge 2026.
Other participating startups include Inviscid AI, Sesame Sustainability, Smart Tire Company, Mimicrete, and Pronoe, all of which are advancing projects related to industrial decarbonization, advanced materials, carbon removal, and sustainability infrastructure.
SMU also emphasized that the USI Fund supports the university’s experiential “teaching accelerator” model by allowing students to participate in startup evaluation, market analysis, due diligence, and portfolio support activities alongside founders and mentors.
KEY QUOTES:
“Urban sustainability innovation often fails not for lack of ideas, but for lack of capital that understands early–stage risk and long deployment cycles. The USI Fund addresses this pain point by co–investing with leading venture capital partners and backing deep-tech startups from SMU’s robust global pipeline, providing targeted early–stage capital to help founders scale proven solutions into Asian urban markets.”
“Selected SMU students are embedded across stages of the USI platform – from startup evaluation and market analysis to diligence and portfolio support – allowing them to develop venture literacy, climate and sustainability insight, commercialisation know-how and applied decision–making skills beyond the classroom.”
“By integrating capital deployment with deep experiential learning, the USI Fund reinforces SMU’s mission as a global city university, where education, innovation, and real–world impact are closely intertwined.”
Professor Sun Sun Lim, Vice President (Partnerships & Engagement), Singapore Management University
