Contxto – Corporate venture capital fund, Wind Ventures, is open for business. Although it had already been working behind the scenes, the VC fund only made the official announcement today (18). According to its website, it even has three portfolio companies.
Wind Ventures is the investment arm of Chilean energy company Copec. From its offices in San Francisco, this venture fund will be looking for startups that match the parent company’s tech-related interests.
Here’s the downlow on this new VC.
- Industry sweet spots: Energy, retail, and mobility
- Check sizes: US$1 million to US$10 million
- Round types: Series A, B, or C
It’s worth noting that a startup doesn’t have to be from Latin America in order for Wind Ventures to consider it. Ideally though it should have its eyes set on scaling within the region.
Wind Ventures and Latin America
Copec, through Wind Ventures, wants to serve as a gateway for startups to scale in each Latin American country. Because, according to Brian Walsh, the head honcho at Wind Ventures, “to succeed in the region, a startup must succeed in each country separately.”
Rightly so, Latin America is a patchwork of regulations for different industries that can impact startups’ survival. Consequently, having an investor at your table with boots on the ground can help soft-land the experience.
More so when it comes to tricky industries like energy.
Corporate venture capital
Considering the uncertainty Covid-19 has brought upon Latam’s startup ecosystem, it will be interesting to see the role corporate venture funds like Wind Ventures play. Venture capital funds have already stated they’d likely hunker down for the next year and a half or so.
But what of corporate venture funds?
- Related article: Corporate Venturing in Latam: more theater than actual stake
Undoubtedly, throughout this Covid episode, startups have shown a lot of agility in product pivoting to tender to new markets and demands. Something larger firms want but can’t achieve as easily. Meanwhile, besides funding, these investors offer the experience and network of a consolidated company that can take startups to the next level.
In that sense, corporate funds and startups can complement each other nicely.
But given the Covid context, it’s likely these investors will also tread with caution and focus on their portfolio companies.
However, as venture capital funds take refuge, corporate arms face less competition to snag hot deals.
Related articles: Tech and startups from Chile!