MICROCAPITAL BRIEF: Multilateral Investment Fund Approves $4m Equity Investment in Angel Ventures Pacific Alliance Fund for SMEs in Chile, Colombia, Mexico, Peru

The Multilateral Investment Fund (MIF), a member of the US-based Inter-American Development Bank (IDB) Group, recently announced an equity investment USD 4 million in the newly-established Angel Ventures Pacific Alliance Fund (AVPAF), a Mexico-based venture capital fund targeting “start-up” and “scale-up” businesses in Chile, Colombia, Mexico and Peru. AVPAF aims to provide investment and advisory services to 25 “high growth potential” companies in the following sectors: financial technology, biotechnology and health, agricultural technology, information and communication technology, and retail.

According to IDB, AVPAF hopes to grow to USD 80 million and plans to invest in companies with “an innovation-centric competitive advantage, high-growth potential, good governance practices, a well-defined plan to expand into the region’s biggest markets, and [that] are engaged in generating a positive social, economic, and environmental impact on society.”

Angel Ventures’ other fund is the Angel Ventures Mexico (AVM) Co-Investment Fund I, a venture capital fund that raised USD 20 million for start-ups headquartered in Mexico and in which MIF was also an investor. The firm also manages a network of approximately 250 angel investors. As of December 2015, MIF had a portfolio of approximately USD 612 million financing 435 projects. As of the same date, IDB reports total assets of USD 111 billion.

By Michelle Dold, Research Associate

About Angel Ventures

Angel Ventures is a Mexico-based venture capital firm that provides “seed” and “early-stage” capital investments as well as mentorship and business advisory services to entrepreneurs in the Americas. It focuses its investments in the following sectors: financial technology, biotechnology and health, agricultural technology, information and communication technology, and retail. As of 2016, Angel Ventures manages a co-investment fund of USD 20 million called  Angel Ventures Mexico (AVM) Co-Investment Fund I and a network of approximately 250 angel investors. During 2016, it launched its second fund, Angel Ventures Pacific Alliance Fund (AVPAF).

About Multilateral Investment Fund (MIF)

The Multilateral Investment Fund (MIF), founded in 1993 and administered by the US-based Inter-American Development Bank (IDB), was created to provide funding to micro- and small enterprises (MSEs) in Latin America and the Caribbean. Its donors comprise 39 member countries, which are located in Latin America and the Caribbean, North America, Europe and Asia. It also receives financing from private investors including the Latin American Challenge Investment Fund, the Emergency Liquidity Facility and Accion Investments. As of December 2015, MIF had a portfolio of approximately USD 612 million financing 435 projects.

About Inter-American Development Bank (IDB)

The Inter-American Development Bank (IDB) is a US-based multilateral finance institution that was established in 1959 and operates in Latin America and the Caribbean. IDB works with governments, companies and nongovernmental organizations (NGOs) to provide both loans and grants to support small and medium-sized enterprises (SMEs), health, education and other sectors. IDB also provides technical assistance and conducts research in these areas. IDB has 48 member countries and offices in Washington, DC; Japan; France; and all of its 26 member countries in Latin America and the Caribbean. As of December 2015, IDB reports total assets of USD 111 billion.

About Pacific Alliance

The Pacific Alliance is a regional integration initiative entered into by Chile, Colombia, Mexico and Peru in April 2011 to: 1) encourage the free movement of goods and services among members; 2) drive economic development; and 3) create a unified platform for “political articulation, economic and commercial integration and projection” to the rest of the world. The Inter-American Development Bank (IDB) has delivered advisory and financial support to various public and private sector entities participating in the Pacific Alliance.

Sources and Additional Information:

[1] Inter-American Development Bank (IDB): MIF invests in a new fund for innovative companies in the Pacific Alliance

[2] MicroCapital Universe Profile: Angel Ventures

[3] MicroCapital Universe Profile: Multilateral Investment Fund (MIF)

[4] MicroCapital Universe Profile: Inter-American Development Bank (IDB)

[5] MicroCapital Universe Profile: Pacific Alliance

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