Imagen vía: Nascent VC
Nascent, the venture capital firm founded by operators and backed by the founders of startups such as KAVAK, Bitso, Nexu, Merama, 99 minutos, Ben & Frank and Belvo, has completed the first closing of its $15 million Fund II.
The new investment vehicle seeks to identify and support the next generation of pre-seed and seed stage technology entrepreneurs in Latin America, according to the firm.
The fund is led by Archie Cochrane (PayU), Bernardo Cordero (Linio), and Víctor Noguera (Clau.com), and has demonstrated the effectiveness of its model with an outstanding performance of its Fund I. During its first version, it achieved returns of 6.5 times what was invested, of which 5.2 times were already returned in cash to investors, by backing early stage companies such as Klar, Belvo and Worky.
Noguera, General Partner of Nascent, told Contxto exclusively that the strategy of Fund II maintains the fundamental principles that led to the success of the first fund, but with greater capacity for execution. “We remain focused on investing at very early stages, even in what we call the ‘pre-powerpoint’ phase, and in sectors where we have direct operational experience such as fintech, proptech, e-commerce and marketplaces, with special attention to those solutions that integrate artificial intelligence in a disruptive way.”
Unlike Fund I, which functioned as a proof of concept with $2.5 million, this new vehicle multiplies its investment capacity sevenfold. Noguera emphasizes that they maintain a concentrated focus, with average checks of $500,000 and the goal of generating returns above 3x DPI without necessarily depending on the appearance of unicorns in their portfolio.
The startup selection process is rigorous and is based on three fundamental pillars: the quality and experience of the founding team, the size and potential of the market opportunity, and the synergy with the support network that Nascent has built. The firm prioritizes leading investment rounds where it can contribute not only capital, but also its operational knowledge and access to a valuable network of contacts, always looking to enter at initial valuations below $6 million.
One of Nascent’s competitive advantages lies in its limited partner network, which includes founders of companies such as Kavak, Bitso, Merama and Belvo, as well as investors such as DCG. Aaron Fu, Director, Venture at DCG, commented: “In 2024, DCG backed four early-stage companies in Mexico as we continue to increase our activity in the region. Working with local, knowledgeable teams like Nascent VC’s, led by Archie, Victor, and Bernardo, has been invaluable. They are building a powerful platform for the region’s next wave of innovation.”
Archie Cochrane, General Partner at Nascent, explains that while these investors do not directly participate in investment decisions, they are an invaluable asset to the portfolio startups. “We have built an active community that opens doors, shares expertise and in many cases collaborates directly with our founders. This community approach is a fundamental part of our model.”
Accompanying startups goes far beyond injecting capital. Nascent’s team, with its experience as operators, works side-by-side with founders in areas critical to early growth: from defining go-to-market strategies and hiring the first key employees, to regulatory structuring and preparing for future funding rounds. This hands-on approach has been key to the success of companies such as Klar, Belvo and Worky, which see Nascent as a true strategic ally.
In terms of performance expectations, Nascent aims to repeat and even exceed Fund I results. Noguera points out that a DPI of 3x or more is perfectly achievable with just three portfolio companies reaching valuations of $200 million, thanks to the early entry strategy and active accompaniment.
In addition to financial returns, the firm says it maintains its commitment to the development of the regional entrepreneurial ecosystem, co-founding initiatives such as Mexico Tech Week.
The macroeconomic context reinforces the opportunity that Nascent seeks to capitalize on. According to the Atlantico Digital Transformation Index (2024), technology companies in Latin America account for just 2.9% of regional GDP, compared to 7% in markets such as India. This gap implies an estimated $800 billion value creation opportunity in the coming years as more traditional industries adopt technology solutions.
Nascent’s Fund II has attracted investors from 10 different countries, demonstrating the growing global interest in Latin America’s technological potential. The firm will continue to focus on sectors where its partners have direct experience as founders or operators, maintaining its philosophy of investing with conviction at early stages and building long-term relationships with entrepreneurs.
For Noguera and his team, this new fund represents an opportunity to deepen their impact on the ecosystem: “Latin America is in the early chapters of a technology transformation story that will last for decades. We want to continue to identify and support the exceptional teams that will lead this change,” he said.
With the first closing completed, Nascent will begin deploying capital in the coming months, seeking 20 to 25 investment opportunities that meet its selection criteria and align with its vision of building lasting, regionally impactful technology companies.
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