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Endeavor Catalyst is the co-investment fund created by the international accelerator Endeavor and is created “by and for entrepreneurs”. It is among the top five global investors outside the US and China with the most unicorns in its portfolio, making it one of the most successful early-stage investors in emerging markets.
This year, the fund plans to raise US$260 million. This will enable it continue investing in high-impact entrepreneurs who have the potential to create more jobs and transform economies, especially in emerging markets.
Endeavor Catalyst started operations in 2012 with US$10 million in its first fund. The second was US$20 million, the third US$80 million and the fourth US$130 million.
It has been part of the history of some of the most visible companies in the region, including Globant. This iconic Argentinian technology company, listed on Nasdaq, was one of its first investments.
At the moment, Endeavor Catalyst has made more than 230 investments in more than 30 countries. It has US$250 million in assets under management and 21 exits in its history. In addition, it has invested in 31 unicorn companies. Among the Latin American ones are Kavak, Bitso, Clip, Rappi, Mural and Ebanx.
Focus on Co-investments
To avoid conflicts of interest with its entrepreneurs, Endeavor Catalyst is strictly a co-investment vehicle. In other words, it participates only in the first round of investment and co-invests in rounds of a minimum of US$5 million, which are led by qualified investors.
From there, it invests up to 10% of the round with a maximum of US$2 million dollars and acquires the role of a passive investor. This means that it is not part of a managerial position nor does it define the terms of the investment.
One of the requirements for a company to receive co-investment from Endeavor Catalyst is that its founder or founders be Endeavor Entrepreneurs; that is, they have been selected by this organization to receive the support of its acceleration network. In addition, the round must mean at least US$5 million for the company and the fund that leads the round must be recognized by Endeavor Catalyst.
The fund invests within the 40 markets in which Endeavor operates and has typically invested in technology companies or those enabled by technology tools. Among its portfolio, the most common investments are in retail and consumer tech (29%), fintech (22%) and services and business software (20%).
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