Expanding Despite Economic Challenges
Impacta VC has announced the closure of its inaugural fund, successfully raising a total of $7 million. David Alvo, the founder and managing partner, shared that despite the challenging economic climate, they managed to complete this process which began two years ago with an initial fund closure of $2 million, later expanding by an additional $5 million.
Alvo also revealed that 66 investors from six different countries contributed to the fund, predominantly Chileans. Prominent entrepreneurs such as Della Maggiora, Muchnick, and Silberstein are among the contributors. Notably, 80% of these investors are entrepreneurs themselves, including 16 from the Endeavor network.
A Focus on Early-Stage Investment
"The strategy of this first fund, focusing on early-stage investment, is to assist our startups to an unprecedented level, helping them reach their Series A. To achieve this, we sought successful entrepreneurs and business owners who have experienced growth in their companies. They can support our entrepreneurs with knowledge, connections, and capital," explained Alvo.
Since the initial fund closure, they have already invested in eight startups and plan to invest in 10 more, aiming for a portfolio of 18 high-potential companies. They have just finalized a deal with Retorna, making it their ninth investment, with a contribution of $300,000.
From their first 'batch', Alvo notes that in just two years, five out of the eight startups have raised new rounds at higher valuations with funds like Kayyak Ventures, Softbank, Salkantay Ventures, Morgan Stanley, and Natura & Co's CVC.
"Choosing startups for early-stage investment is not easy because the odds of success are low. Having seven out of eight companies performing exceptionally well in their markets and achieving new valuations in a short period is quite rare, so we are very pleased," Alvo highlights.
On average, the upcoming investments will range between $100,000 and $400,000 as the initial contribution per investment and could go up to $1 million per startup in total.