Alive Ventures closes $ US$55 million fund to invest in impact startups in Latin America

Alive Ventures completed the final close of its second venture capital fund at $ US$55 million, consolidating its investment strategy in startups seeking to expand access to essential services for underserved populations in Latin America.

The fund, called ALEG II, brings the firm’s assets under management to more than $ US$80 million and strengthens its position as one of the leading impact investment managers in the Andean region.

A fund backed by global institutional investors

The new investment vehicle attracted commitments from international and regional institutional investors. Participants include Proparco, FMO, Impact Fund Denmark, Dutch Good Growth Fund, the MacArthur Foundation and Acumen, as well as Latin American players such as Bancoldex, Cofide, Sonen, Fundación Bancolombia and Fundación WWB Colombia.

According to Santiago Álvarez, co-founder and managing partner of Alive Ventures, investor interest reflects the relevance of the firm’s impact strategy.

“This $ US$55 million close reflects the strong interest investors have in our local, impact-focused approach. Our portfolio companies have positively impacted more than 13 million lives to date, 52 % of whom are vulnerable populations living on less than $ 11 a day,” he explained.

According to the executive, nearly 60% of the capital comes from development banks, while 20% comes from foundations and endowments, 10% from funds of funds, and the remainder from family offices.

By geographic source, Europe accounts for approximately 50% of the capital, followed by Latin America at 40% and the United States at 10%.

Fintech and financial access make up a large share of the portfolio

ALEG II has already invested in 11 startups, with a significant concentration in fintech and business models focused on expanding access to financial services.

This segment represents around 40% of the portfolio, with investments in companies such as Agricapital, Finmaq, Creditu and Prestamype, which focus on solutions such as productive credit, equipment financing, and access to housing for people outside the traditional financial system.

Álvarez noted that the growth of connectivity and technology adoption in Latin America is opening up new opportunities to serve these historically underserved segments.

“We’re seeing how innovation and the widespread adoption of technology and connectivity in the region are creating major investment opportunities in models that aim to reach underserved segments,” he said.

The executive added that these markets represent large opportunities with relatively low levels of competition compared with other, more established segments.

Energy and climate adaptation are also part of the strategy

In addition to its focus on financial inclusion, Alive Ventures is also backing solutions related to climate adaptation and energy.

In this area, the fund has invested in companies such as Hybrico, which provides energy as a service to telecommunications towers through photovoltaic systems, and Solfium, a platform that helps neighborhood stores in Mexico adopt solar solutions.

With this second fund, the firm plans to build a portfolio of around 15 companies, expanding on the strategy launched with its first fund of $ US$28 million, which invested in eight companies.

Investing in companies with traction and growth potential

Alive Ventures’ strategy focuses on a stage it calls Early Growth, targeting startups that already have a validated product and market traction but still face limited access to capital.

In this context, the firm seeks to lead investment rounds that enable these companies to move toward Pre-Series A or Series A financing.

Álvarez said the first fund has performed well, even amid a challenging environment for the region’s venture capital industry.

“Our first fund is performing very well. Despite the industry’s challenges in recent years, our bet on investing in high-impact social models is proving resilient,” he said.

The executive added that companies focused on underserved segments have maintained steady growth, reinforcing the firm’s conviction to continue backing this approach with its second fund.

Technical assistance and an impact focus

Alongside its capital, Alive Ventures maintains a technical assistance program to support portfolio startups through specialized consulting.

These initiatives cover areas such as impact measurement, gender inclusion, commercial strategy, data management, talent and processes, as well as a dedicated workstream focused on climate issues.

Alongside the fund’s close, the firm also announced the promotion of Maria Pia Morante to partner, after nearly nine years at the organization, where she has led transactions and strengthened impact, gender, and climate frameworks within the investment strategy.