Impacta VC's Inaugural Fund Reaches $7 Million Mark
In a significant milestone, Impacta VC, a social and environmental impact investment fund in Latin America, proudly announces the successful closure of its inaugural fund, securing a total of US$7 million. The conclusion of this fundraising effort marks the end of a two-year journey that commenced with an initial closure at US$2 million and later expanded by an additional US$5 million in subsequent stages.
Investor Landscape and Strategic Approach
The first fund of Impacta VC attracted contributions from 66 investors, or Limited Partners, spanning six countries. Notably, 80% of these investors are entrepreneurs, including prominent figures such as Eduardo Della Maggiora of Betterfly, Matias Muchnick of NotCo, and Alejandro Silberstein of Raya. Sixteen of these contributors are part of the esteemed Endeavor network.
David Alvo, founder and Managing Partner of Impacta VC, outlines the strategic approach, emphasizing the focus on early-stage investments to propel startups towards their Series A funding. The fund actively sought out successful entrepreneurs who have navigated the growth of their own ventures to provide invaluable support to emerging businesses in terms of knowledge, connections, and capital.
Impacta VC's early performance has been nothing short of impressive. Within just two years, five out of its initial eight investments have successfully secured new rounds at higher valuations with backing from notable funds, including Kayyak Ventures, Softbank, Salkantay Ventures, and Morgan Stanley.
Impressive Early Performance
Since the initial fund closure, Impacta VC has already invested in eight startups and aims to expand its portfolio to a total of 18 high-potential companies, with intentions to invest in 10 more.
Alvo expresses satisfaction with the current success rate, acknowledging the challenges of selecting early-stage startups. The fund plans to continue its strategic investments, with an average ticket size ranging from US$100,000 to US$400,000 as the initial investment, potentially reaching up to US$1 million per startup in total.
An interesting highlight is the endorsement from VC Lab, founded by Adeo Ressi, which selected Impacta VC as one of the nine funds for investment and is the only fund to receive investment twice, making it the largest investment for VC Lab.
Future Investment Plans
Impacta VC deliberately chose not to target institutional LPs, Funds of Funds, Family Offices, Corporates, or Foundations for its first fund. The focus was on First Time Fund Managers or General Partners, despite initial challenges in attracting such LPs. The invitation to these entities is reserved for the second fund.
The fund's strategic vision is to continue building its portfolio for the first fund while working towards delivering impactful returns.
Diverse Portfolio and Future Projections
Impacta VC's current portfolio includes early-stage investments in Latin American companies such as Betterfly, Carryt, Cuentame, Kilimo, Lab4U, and Wheel the World. The fund aims to double its portfolio by 2024, supporting impactful companies throughout Latin America.
This fund remains committed to its mission of creating a better world for all through investments and support in purpose-driven startups, striving to be the most prominent impact-driven VC in Latin America.