When Amplifica Capital launched in 2020, investors questioned whether the new manager would find enough deals for a gender-lens venture fund in Latin America. The team has since screened 1,500 companies, diligenced hundreds and invested in 25.
“A lot of people were doubtful of whether we would see enough deal flow, and also about what it means to ‘invest in women’,” Amplifica founder Anna Raptis told ImpactAlpha. “The data speaks for itself.”
The early stage VC firm invests at the intersection of gender and climate and/or digital inclusion, backing companies that are led by women or have designed products and services that center women. Mexico-based Verqor provides access to credit to farmers and helps them adopt sustainable farming practices. Tani Salud provides surgical patients with better information and cost estimates for their procedures. MicroTerra is partnering with aquaculture farms in Mexico to grow duckweed, which purifies and nourishes the farms; it’s using the mature plants to make a sugar alternative for food manufacturers.
Stick to the basics
Amplifica focuses on Latin America’s “fundamental” economic sectors that are less susceptible to tech hype-cycle volatility.
“So many basic needs aren’t being adequately served, and that isn’t just happening at the base of the pyramid,” said Raptis. “It’s the middle class as well.”
Long-haul bus service Kolors is making intercity travel in Mexico more efficient and affordable; it’s also partnering with large companies to provide shuttle services for their employees to reduce traffic congestion and help people get to work on time. Clupp is addressing low rates of car insurance in Mexico with affordable policies.
By the numbers
The Mexico City-based venture fund sources about 30% of its pipeline from Mexico. Another 15% of companies are based in Colombia, and 10% each are in Chile, Argentina and the US. Its biggest sectors are climate solutions (16%), software (14%), fintech (13%), marketplaces (10%) and health tech (10%). “It’s been fundamental for us to demonstrate that there is significant investable dealflow, and that there is both breadth and depth in the investment possibilities,” said Raptis.
Women supporting women
Amplifica closed $11 million for its first fund at the end of 2022. Eighty percent of its investors were based in Latin America; 60% were women.
Research has shown that when women manage more money, they invest in women-led businesses more often than male managers.
“We want to see more funds like ours,” Raptis said. “We also hope we can continue to broaden the investor base and bring in more women.”
