IMPAQTO Capital announces first close of $2MM fund to invest in early-stage impact startups in the Andean Region
Michelle Arevalo-Carpenter and Justin Schwartz, Partners of IMPAQTO Capital
Photo: Courtesy of IMPAQTO
Quito, January 5, 2023
IMPAQTO Capital announced today the first close of IMPAQTO Capital Fund I, which offers flexible capital primarily through revenue-based financing instruments with the goal of accelerating startups’ growth and supporting them in scaling their impact. IMPAQTO Capital will continue to fundraise to reach the final close target of $2MM.
Justin Schwartz, Managing Partner of IMPAQTO Capital, said: “we are excited about the first close of IMPAQTO Capital Fund I to offer innovative financing solutions to impact startups in the Andean Region, a region that is often overlooked but has a great pipeline of high-potential impact companies that need the right type of capital in order to grow”.
IMPAQTO Capital addresses the financing gap for early-stage startups known as the “missing middle”, which represents an enormous impact opportunity that is not currently being met by the market. The first close of IMPAQTO Capital Fund I includes a diverse group of local and international investors.
“IMPAQTO Capital Fund I is unique in the region due to its focus on closing the ‘missing middle’ gap in access to capital for impact startups, providing alternative investment structures and activating local investors in order to strengthen the impact investing ecosystem in the region”, commented Michelle Arévalo-Carpenter, General Partner of IMPAQTO Capital.
The fund will invest in innovative and scalable companies generating positive impact in Ecuador, Peru, Bolivia, Colombia, and Chile using revenue-based financing instruments that provide an alternative to traditional equity and debt financing. The fund focuses on four sectors that create scalable impact in the region: 1) education, 2) health and wellness, 3) agroindustry and food supply chains, and 4) environmental solutions. In addition, IMPAQTO Capital Fund I applies a gender-lens to promote equality in all phases of the investment process.
IMPAQTO Capital is born from a deep understanding of entrepreneurs’ needs based on the 8 years of experience that IMPAQTO has in building the entrepreneurial and impact investing ecosystem in the region. The IMPAQTO team has worked with over 300 startups from 13 countries in Latin America through its accelerator IMPAQTO Lab + Google for Startups. Its team also hosts the Latin American Impact Investing Summit (CLIIQ), the flagship impact investing event for the Andean Region that facilitates connections between entrepreneurs and impact investors.