- Broota’s third fund, DS3, introduces a lowered entry ticket of $2 million.
- The fund aims to gather $2 billion, investing in 15 startups with impactful solutions by year-end.
- Broota emphasizes a commitment to adding value and generating positive externalities through its investments.
Broota, a collective financing platform, has launched its third investment vehicle, DS3, in response to the high entry costs deterring younger investors. With a reduced entry ticket of $2 million, the initiative aims to attract a wider range of investors and fund 15 high-impact startups, providing investments between US$50,000 and US$200,000 in their early stages.
In 2022, the platform successfully raised over $2.6 billion through its first fund, supporting 18 companies. Its second fund in 2023 continued the trend, gathering over $2 billion and backing companies like Algramo, Políglota, and Ecoterra. However, the realization that less than 10% of investors were under 30 prompted the strategic adjustment in investment entry costs.
The selection process, managed by Broota’s team, will mirror previous funds, focusing on company scouting, metric analysis, and legal backgrounds. The firm’s approach to investment is influenced by the need for startups to demonstrate a positive impact, emphasizing solutions that add value and have positive external impacts. According to José Antonio Berríos, co-founder of Broota, their goal is to foster an investment ecosystem that encourages more diverse participation and facilitates liquidity in the secondary market, enhancing overall market dynamics.
As for the venture capital activity, Broota anticipates a strong year ahead with favorable economic conditions and a more active investment landscape, particularly in the latter half of the year. The lower interest rates expected by year-end are seen as an additional incentive for investment growth.