Capital for seed-stage ventures and other small and growing businesses in emerging markets — the dreaded ‘missing middle’ — has been hard to come by.
To tackle that challenge, Capria Ventures began in 2015 training and investing in a network of first-time fund managers in Latin America, Africa and Asia. Now, Capria says its network of 11 fund managers is on track to raise nearly $200 million in 2018 (The network currently manages $105 million).
Last year, funds in the Capria network completed seven investments, including Pomona Impact’s investment in Organic Gum in Guatemala and Zimbabwe-based Vakayi Capital’s investment in Homelux, an affordable housing provider.
Capria also says it expects to close the first tranche of a new $100 million fund-of-funds in the first half of 2018.
“In addition to investing in funds, we also look to provide capital to the management company as needed, and we will warehouse deals on behalf of managers we select prior to the formal formation of their fund,” said a Capria spokeswoman.
Capria is currently recruiting new fund managers in Latin America, Africa and Asia through its sixth investment cycle.