Fundación Chile is joining the ranks of the growing venture capital scene in Chile. This week, Fundación Chile launched a US$18M fund, which received 67% of its backing from CORFO and 33% backing from private capital, including Zoma Capital, Engie Factory, and Entel.
The fund will focus on investments in sustainability and productivity, specifically in the natural resource sector, including energy, water, and mining. They look to invest in early-stage, high impact startups with a B2B business model that are looking to grow and turn Chile into a global problem-solver.
Said Andres Pesce, the business manager at Fundación Chile, in the original article for El Mercurio:
“The sustainability challenges that Chile’s productive sectors face are an opportunity rather than a restriction, since they provide a space to add value and innovation. Furthermore, big technological changes are threatening traditional businesses, so this fund is a way to explore options that allow those industries to evolve more rapidly. The fund seeks returns, but it also wants to jumpstart development in the country.”
The fund plans to invest in 20-25 startups in Chile over four years. The average ticket size for a seed round is set at US$200K to US$500K, with potential follow-on investment of US$800K to US$1M.
Read more in the original article for El Mercurio.