Impacta VC, a venture capital firm specializing in social and environmental impact investments, has successfully completed raising its first fund, totaling $7 million. This milestone, achieved in November, marks the end of a two-year process that began with an initial $2 million and was later boosted by an additional $5 million.
The fund attracted 66 investors (or Limited Partners) from six countries, with 80% being entrepreneurs. Notable contributors include Eduardo Della Maggiora of Betterfly, Matias Muchnick of NotCo, and Alejandro Silberstein of Raya. Additionally, 16 of these investors are part of the Endeavor network.
David Alvo, founder and Managing Partner of Impacta VC, explains that the fund's strategy is to support early-stage startups in reaching Series A funding, leveraging the experience, connections, and capital of successful entrepreneurs. This approach is designed to provide unprecedented support to startups, aiding their growth journey.
The early performance of Impacta VC's investments has been impressive. Within just two years, five of its first eight investments have secured additional funding at higher valuations from notable sources such as Kayyak Ventures, Softbank, Salkantay Ventures, Morgan Stanley, and Natura & Co's CVC.
Since its initial launch, Impacta VC has invested in eight startups and plans to invest in ten more, aiming for a portfolio of 18 high-potential companies. David Alvo highlights the challenge and satisfaction of selecting early-stage startups for investment, noting that seven of their eight investments are performing well in a short time.
The average investment size for future startups will range between $100,000 and $400,000, potentially reaching up to $1 million per startup in total.
A significant achievement for Impacta VC is the investment from VC Lab, founded by Adeo Ressi. Out of over 12,000 general partners and funds, VC Lab chose Impacta VC as one of only nine funds to invest in and the only one to receive two investments, making it VC Lab's largest investment.
Alvo added that for this first fund, the focus was not on institutional LPs, Funds of Funds, Family Offices, Corporates, or Foundations. These entities typically invest in more globally recognized funds and GPs with already invested funds. Impacta VC plans to invite them for their second fund but is currently focused on building their portfolio and generating substantial returns.
Impacta VC's portfolio includes early investments in Latin American companies like Airbag, Betterfly, Carryt, Cuéntame, Kilimo, Lab4U, and Wheel the World. The firm aims to double its portfolio by 2024 with impactful enterprises across Latin America.