At a convening in Nairobi, Kenya this month, consolidation weighed on the minds of upstart fund managers. The tough fundraising environment, coupled with the overseas aid and development finance retreat by the US and Europe, has some managers thinking about whether joining forces offered a surer path to fundraising and growth, several managers told ImpactAlpha.
On the other side of the world, in Mexico, two early stage venture capital funds have merged ahead of plans to raise a new fund.
Nazca, with its $300 million in assets under management, is joining up with Bridge, a $20 million manager, Bloomberg reported. The new firm, which has not yet announced a name, is planning to head back to the market later this year with what will be the Nazca team’s fourth fund and Bridge’s second.
“By combining the strengths of Nazca and Bridge, we are creating a powerhouse that will shape the future of the startup ecosystem in the region,” Nazca’s Héctor Sepúlveda said.
Portfolio impact
Nazca has played a prominent role in supporting Mexico’s tech innovation through early-stage capital and support. Bridge launched with the idea that startup founders make the best investors in other founders.
Neither are impact investors, though both have a number of impact startups in their portfolios.
Nazca has invested in insect farming venture Entocycle; PhageLab, which is addressing antibiotic resistance; Finkargo, an online trade platform for underserved small businesses; Glago, a motorcycle finance startup for the underbanked, and many others.
Bridge has backed Jefa, a mobile financial services company focused on women; insurance tech company Super; Treinta, which provides a mobile business app for small businesses that operate largely offline; and Elenas, an e-commerce platform for Colombia’s female micro-entrepreneurs.
