Impacta VC announces final close of its first fund at US$ 7 million
Impacta VC, a social and environmental impact investment fund, announces the close of its first fundraise, which reached a total of US$ 7 million.
Impacta VC, a social and environmental impact investment fund, announces the close of its first fundraise, which reached a total of US$ 7 million. The final close took place in November, concluding a process that began two years ago with an initial close of US$ 2 million, which was later increased by US$ 5 million.
66 investors (or Limited Partners) from 6 countries contributed to Impacta VC’s first fund; 80% of them are entrepreneurs, including Eduardo Della Maggiora of Betterfly, Matias Muchnick of NotCo, and Alejandro Silberstein of Raya. In addition, 16 of them belong to the Endeavor network.
“The strategy behind this first early-stage fund is to help our startups like never before so they can reach their Series A. That’s why we set out to find successful entrepreneurs and business leaders who have experienced the growth of their companies and can support our entrepreneurs on their growth journey with knowledge, connections, and capital”, says David Alvo, founder and Managing Partner of Impacta VC.
Impacta VC’s early performance continues to impress. In just two years, 5 of its first 8 investments have raised new rounds at higher valuations from funds such as Kayyak Ventures, SoftBank, Salkantay Ventures, Morgan Stanley, and Natura & Co.’s CVC.
Since the fund’s initial close, Impacta VC has invested in eight startups and plans to invest in 10 more, with the goal of building a portfolio of 18 high-potential companies.
“Choosing early-stage startups to invest in isn’t easy, because you know the odds of success are low. Having seven out of eight companies growing very well in their respective markets and achieving higher valuations in such a short time is rare, so we’re very pleased”, Alvo notes.
On average, initial checks for upcoming investments will range from US$ 100 thousand to US$ 400 thousand per investment and could reach up to US$ 1 million per startup in total.
One of the most notable aspects of the fundraise is that VC Lab, the fund founded by Adeo Ressi, which has reviewed more than 12.000 general partners / funds, chose Impacta VC as one of the 9 funds it has invested in. Impacta VC is the only one it has invested in twice, making it VC Lab’s largest investment.
“For this first fund, we decided not to focus on seeking out institutional LPs, Funds of Funds, Family Offices, Corporates, or Foundations. First-time Fund Managers or General Partners face challenges adding this type of LP to their first fund, as these investors look to invest in funds with greater global recognition and GPs with funds already invested. We’ll invite them to our second fund, but for now our focus will be on continuing to build our Fund I portfolio and working to generate truly impactful returns”, Alvo added.
Impacta VC’s portfolio includes early-stage investments in Latin American companies Airbag, Betterfly, Carryt, Cuéntame, Kilimo, Lab4U, and Wheel the World, and the firm plans to double its portfolio during 2024 with impact companies across Latin America.
