Mexican venture capital funds Nazca and Bridge are merging to form a single firm, whose name is not yet defined, according to Luis Enriquez, partner and co-founder of Bridge. This transaction is the first of its kind in the Latin American investment ecosystem.
The collaboration between Nazca and Bridge Latam began three years ago with the launch of Nazca III, a fund that, in addition to its core strategy, allocated a portion of its capital to invest in emerging managers to foster strategic alliances in the region.
Now after the merger, Nazca Fund IV will be launched in 2025 with the ambition to lead the investment ecosystem in Latin America. “We are yet to define the size, but we are looking to lead the Spanish speaking Latam region,” Enriquez told Contxto.
VC consolidation
Hector Sepulveda, co-founder and managing partner of Nazca, said in a statement, “By combining the strengths of Nazca and Bridge, we are creating a powerhouse that will shape the future of the startup ecosystem in the region.”
Throughout its trajectory – which began in 2013 in Mexico City – Nazca has backed some of the most relevant startups in the region, including Kavak, Z Brands (Luuna), Ben & Frank, Albo and Jüsto. While Bridge, founded in 2022 by angel investors, has bet on growth companies such as Aplazo, Mendel, Koywe and Niko, demonstrating the effectiveness of its early-stage investment model.
Nazca has managed more than $300 million dollars in assets and has obtained returns in excess of 30% IRR in its first fund. Bridge, on the other hand, has consolidated a data-driven investment approach that has proven to generate significantly superior early-stage returns.
The merger will integrate the managing partners of both funds and its thesis will be “to invest in early-stage, industry-agnostic tech companies with great entrepreneurs,” said Enriquez.
In addition, the new merged structure will have the backing of recognized local, regional and international institutional investors. This union will allow the integration of two large networks of venture partners, formed by some of the most influential entrepreneurs and founders in Latin America, among which stand out: Daniel Vogel (Bitso), Liza Schwartzman (Fitpass), Eduardo Paulsen (Ben & Frank), Javier Mata (Yalo), Federico Ranero (Draiver), Alejandro Maza (OPI), Miguel Garcia (Infosel) and Alison Campbell (Zubale), on Bridge’s side. On Nazca’s side, the network includes Carlos García (Kavak), Carlos Salinas (Z Brands) and Ricardo Weder (Jüsto).
The merger will also bring new technological capabilities. Bridge will leverage its proprietary predictive algorithms, in collaboration with Nazca’s Artificial Intelligence unit, to improve data-driven decision making. It is worth noting that Bridge is the only Latin American VC that is part of the global Data-Driven VC network, showing leadership in the application of artificial intelligence to venture capital.
Both firms believe that mergers between venture capital funds are beginning to play a key role in the expansion and consolidation of the sector.
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