If seed funding is hard for Latin American startups building products and services in agriculture, education, health and clean energy, growth funding may be even harder.
The average impact investment deal size in the region is below $1 million, according to a 2016 report from Aspen Network of Development Entrepreneurs. Startups looking to scale, as well as early-investors seeking ways to exit, need later-stage investors.
That’s an opportunity for firms such as Performa Investimentos, a Brazilian private equity and venture capital firm seeking to “fully transition into an impact investment firm.” Performa is targeting its third, $80 million, fund towards series B and C opportunities in healthcare and financial technology, education, agriculture technology and clean technology in Brazil.
Through its first two funds, Performa invested $75 million in 13 companies. Performa is working with Capria, an impact investing fund-manager accelerator, to lower its transaction costs, build a deal pipeline, build impact assessment capabilities and network and learn from other impact fund managers.
For more on Capria, which is recruiting its fourth cohort now, see:
Network Effects: Impact Seed Funds in Africa and Latin America Share Secrets and Struggles
