Impacta VC, a Chilean venture capital firm specializing in social and environmental impact investments, recently announced the completion of its first investment fund, totaling $7 million. This milestone, reached in the last week of November, marks the end of a two-year effort. The fund commenced with an initial $2 million, later bolstered by an additional $5 million.
The fund targets early-stage startups to assist them in reaching Series A funding rounds. David Alvo, the managing partner, stated the firm’s method involves using the expertise, networking, and financial support of entrepreneurs to aid new ventures. The portfolio includes startups such as Airbag, Betterfly, Carryt, Cuéntame, Kilimo, Lab4U, and Wheel the World, all based in Latin America.
The fund has 66 limited partners from six countries, with 80% being founders. Partners include Eduardo Della Maggiora of Betterfly, Matias Muchnick of NotCo, and Alejandro Silberstein of Raya. Additionally, 16 entrepreneurs from the Endeavor network are involved. The first eight investments by the fund have secured follow-up funding rounds with increased valuations, supported by investors like Kayyak Ventures, Softbank, Salkantay Ventures, Morgan Stanley, and Natura & Co’s Corporate Venture Capital.
Investment amounts start from $100,000 to $400,000 for each startup, with the possibility of reaching $1 million in total per startup. Alvo mentions that the fund is focusing on growing its portfolio and generating returns.
Since the initial funding round, Impacta VC has invested in eight startups and plans to invest in ten more, aiming for a total portfolio of 18 companies. Alvo notes the growth and market performance of most of their startups, despite the challenges associated with early-stage investments.
Impacta thesis arrives at a significant time for early-stage startups in the region. Crunchbase data for Q3 2023 shows an 8% increase in investments compared to Q2, totaling approximately $699 million. This is a 46% drop from the same period in 2022, reflecting investment fluctuations. In 2021, startup investments in Latin America reached $13 billion. However, the first three quarters of 2023 saw only $2 billion in investments.
