500 Startups wrestles $10m fund

The International Finance Corporation is a limited partner in 500 Startups’ second fund aimed at startups in Latin America.

VC firm 500 Startups has announced a $10m fund aimed at startups based in Latin America, attracting the International Finance Corporation (IFC), the private sector arm of the multilateral financial institution World Bank, as a limited partner, TechCrunch wrote yesterday.

The Luchadores II fund will target some 120 companies with the aim of boosting the number of unicorns in the region to double digits.

500 Startups has been investing in Latin America since 2010, but as a seed stage-focused firm has struggled in an ecosystem that lacks investors to support large series B, C and D rounds as well as potential acquirers that make exits difficult.

The firm’s portfolio businesses in Latin America have so far raised just over $95m in follow-on capital.

IFC hopes to help remedy that situation, bringing with it considerable expertise in later stage investments but having also shifted its focus onto seed rounds over the last two years.

Nikunj Jinsi, global head of VC investments at the IFC, said: “We are trying to find a best of breed microfund managers in all developing markets.”

See more from this Government Report: World Bank/IFC

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