Emerging and Growth Markets | February 14, 2022

Brazil’s Velvet raises $200 million to give early emerging market venture investors an exit

Jessica Pothering
ImpactAlpha Editor

Jessica Pothering

ImpactAlpha, February 14 – Exits are a persistent and nagging question in the relatively young field of impact investing. Brazil’s Velvet wants to remove some of the uncertainty for founders, employee equity-owners and early investors in emerging market companies.

The investment firm has launched a secondary market on which owners can sell their early shares as other investors buy in.

Velvet has raised $200 million, led by Yolo, to close its first 40 deals.

Big valuations

Velvet has paid more than $30 million to buy shares from the early employees of companies valued at $500 million or more. Its portfolio includes e-commerce venture Nuvemshop, which in August raised $500 million, Mexican fintech CrediJusto and Indian neobank Open. Founders Carlos Naupari and Edouard de Montmort say their primary mission is to deepen emerging markets’ bench of experienced entrepreneurs by enabling founders to cash out of their businesses and start new ones.