SEED
AND VENTURE CAPITAL

The challenge of funding constraints

It has been demonstrated that small, young, and high-growth businesses - also known as “dynamic businesses” - contribute significantly to economic growth, job creation and technological development, and thereby improve people’s lives. However, many of those businesses face substantial challenges to growth due to a lack of access to long-term financing, limited industry knowledge, informality, and little professionalization. Seed and venture capital funds specialize in providing financial resources and industry expertise to address the growth needs of high-impact businesses. Nonetheless, the few seed and venture capital funds in the region are able to cover only a small proportion of the current financing needs of dynamic businesses in Latin America and the Caribbean.

Objective

The MIF promotes local capacity-building and spreads out investment risks with other partners in the region, demonstrating that financial sustainability and positive social and environmental impact can be mutually attainable.

Focus

To achieve this goal, the MIF is executing projects and initiatives in the following areas:

• Fund of funds. We act as a fund of funds by investing in seed and venture capital funds which offer financing to early stage enterprises. We do not finance individual businesses directly.
• Building expertise. We promote the capabilities of new and existing seed and venture capital funds, as well as key institutions such as angel networks, venture capital organizations, and capital markets.
• Public initiatives. We provide technical support and advice to governments pursuing reforms aimed at improving the operating environment of the venture capital ecosystem.
• Visibility. We promote expansion of seed and venture capital ecosystems, with special emphasis on attracting investors through knowledge dissemination and mobilization of key actors.
• Women. We support the empowerment of women entrepreneurs and early stage business owners, particularly by addressing capital needs.

Results

• 17 years investing in the region
• More than US$323 mm committed
• More than 350 beneficiary businesses
• 52 active funds
• Participation in more than 65 funds
• Investment in 4-5 new funds every year
• More 50 events organized
• 7x Mobilization: For every US$ 1 invested in a fund, up to US$ 7 matched by third parties.
  
  

Are you looking for financing? Read our eligibility criteria here.