Bicycle Capital, backed by anchor investors Claure Group, Marcelo Claure’s Family Office, and Mubadala Investment Company, has announced the launch of a $500 million later-stage fund. The fund aims to support Latin American startups that have achieved product-market fit, established a successful business model, and demonstrated strong sales.

With ticket sizes ranging from $30 million to $50 million, Bicycle Capital will selectively partner with growth-stage companies and assist them in scaling their operations. This is particularly valuable in an ecosystem where securing funding becomes challenging due to the presence of larger ticket sizes of $20 million, $50 million, or even $100 million.

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In a statement, Claure assured that:

This fund will be a key component of my commitment and focus on Latin America, which has a unique combination of excellent entrepreneurs, a digitally savvy population that adapts well to technology, and more opportunities than available capital.

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Marcelo Claure and Shu Nyatta, both managing partners at Bicycle Capital, bring extensive experience in Latin American venture capital from their previous roles at Softbank, where they were instrumental in establishing and managing SoftBank’s $8 billion Latin America Funds.

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What does this fund mean for Latin American venture capital?

  • Increased availability of funding: Bicycle Capital’s $500 million fund means that there is more capital available to invest in Latin American startups, expanding financing opportunities for venture capital firms in the region.
  • Rising competition: With such a significant fund in play, it is likely that competition among Latin American venture capital firms will increase to secure investments in promising companies, potentially leading to higher quality and maturity levels among backed projects.
  • Boost to the entrepreneurial ecosystem: Bicycle Capital’s fund is a positive indicator for the Latin American entrepreneurial ecosystem, as it demonstrates confidence in the potential and profitability of startups in the region. This could attract more investors and foster further growth and development of the entrepreneurial ecosystem in Latin America.

What does this fund mean for Latin American startups?

  • Increased access to substantial funding: The $500 million fund launched by Bicycle Capital provides Latin American startups with the opportunity to secure significant investment, enabling them to scale and expand their operations.
  • Enhanced growth prospects: With access to larger funding amounts, Latin American startups can pursue ambitious growth strategies, enter new markets, and accelerate their development, potentially leading to higher valuations and increased market presence.
  • Enhanced credibility and validation: The establishment of a substantial fund specifically targeting Latin American startups sends a positive signal to the market, indicating confidence in the region’s entrepreneurial potential. This can enhance the reputation and credibility of Latin American startups, making them more attractive to other investors and partners.

For detailed information, visit: LatamList