Contxto – HCS Capital recently invested US$3 million in a Chilean financial crowdfunding platform, RedCapital.
This is RedCapital’s first venture round. CEO and founder of RedCapital, Gustavo Ananía, intends to increase operations in Chile and Peru while pursuing an internationalization plan.
Specific countries in mind are Colombia and Mexico. However, the end result will be the rest of Latin America as well as the United States.
“We are very happy that HCS has trusted our company and that we can count on their support today,” said Ananía. “There is no doubt that it will be a great contribution in terms of experience and knowledge, especially for their focus on fintech and machine learning companies.”
RedCapital has subscribed over 5,000 investors and 1,000 SMEs since its 2014 founding. Functioning like the middleman, the platform connects investors with SMEs needing funds that certain traditional banks can’t provide.
Besides playing matchmaker between investors and SMEs, RedCapital provides other services ranging from leasing, factoring, credits, among others.
“We fulfill a social role,” said Ananía.”So much for us at RedCapital but also the investors that support the SMEs through investment tools.”
Known for its good rates, it has processed over 3,800 transactions worth over US$90 million. The company also financed US$50 million in 2018, which it expects to double this year.
HCS Capital is a U.S.-based fund known for its tech focus and interest in machine learning. Previously it supported Jooycar, We Technologies and Ceptinel. Now with RedCapital, it continues to follow through on its commitment to supporting fintech and insurtech endeavors.
“We were very impressed by what the RedCapital team has managed to build in such a short time,” said CEO of HCS Capital Partners, Alex Horvitz.
“With a portfolio of US$ 90 million, a growth rate over 100% per year, and a default rate below the market, we see in RedCapital’s business model a tremendous opportunity to grow in Latin America and the United States,” added the executive.
So far, RedCapital has coordinated two funding rounds between HCS Capital Partners as well as Seedstars for a seed round in 2015.