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Impact of Early Stage Equity Funds in Latin America

201 Pages Posted: 15 May 2016 Last revised: 6 Aug 2016

Josh Lerner

Harvard Business School - Finance Unit; Harvard University - Entrepreneurial Management Unit; National Bureau of Economic Research (NBER)

James Tighe

Bella Research Group

Steve Dew

Bella Research Group

Vladimir Bosiljevac

Harvard Law School

Ann Leamon

Bella Research Group

Sandro Díez-Amigo

Inter-American Development Bank (IDB)

Susana Garcia Robles

Inter-American Development Bank (IDB)

Date Written: April 21, 2016

Abstract

This report contains the findings of research commissioned by the Multilateral Investment Fund (MIF), a member of the Inter-American Development Bank (IDB) Group, to study the effectiveness of three recent venture capital fund investments in Latin America. The profiled funds, Vox Impact Investing Fund I, a Brazilian impact investment fund headquartered in São Paulo; Progresa, a classic VC fund located in Medellín, Colombia and focused on healthcare and technology companies; and NXTP Labs, a LatAm regional seed fund managed by an investment firm that runs an accelerator modeled on Silicon Valley’s Y Combinator, serve as case studies to explore the direct and indirect impacts of the MIF’s investments on the portfolio companies and the wider communities and region in which they operate. The researchers found evidence that the MIF’s investments in the three funds were effective along several dimensions, such as providing risk capital in credit-constrained environments, arranging beneficial networking opportunities and business training, and supporting the region’s innovation. Most notably, the MIF’s funding and engagement markedly improved the VC ecosystems in which the funds operated.

Keywords: Venture Capital, Latin America, MIF, Multilateral Investment Fund, Inter-American Development Bank, IDB, Vox Capital, Progresa, Promotora, NXTP Labs, Accelerator, Impact, Effectiveness

Suggested Citation

Lerner, Josh and Tighe, James and Dew, Steve and Bosiljevac, Vladimir and Leamon, Ann and Díez-Amigo, Sandro and Garcia Robles, Susana, Impact of Early Stage Equity Funds in Latin America (April 21, 2016). Available at SSRN: https://ssrn.com/abstract=2778640

Josh Lerner

Harvard Business School - Finance Unit ( email )

Boston, MA 02163
United States
617-495-6065 (Phone)
617-496-7357 (Fax)

HOME PAGE: http://www.people.hbs.edu/jlerner/

Harvard University - Entrepreneurial Management Unit

Cambridge, MA 02163
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

James Tighe (Contact Author)

Bella Research Group ( email )

221 Essex St. Suite 21
Salem, MA 01970
United States
(845)264-1803 (Phone)

HOME PAGE: http://www.BellaResearch.com

Steve Dew

Bella Research Group ( email )

221 Essex St. Suite 21
Salem, MA 01970
United States

Vladimir Bosiljevac

Harvard Law School ( email )

1875 Cambridge Street
Cambridge, MA 02138
United States

Ann Leamon

Bella Research Group ( email )

221 Essex St. Suite 21
Salem, MA 01970
United States
9784984467 (Phone)

Sandro Díez-Amigo

Inter-American Development Bank (IDB) ( email )

1300 New York Avenue NW
Washington, DC 20577
United States

Susana Garcia Robles

Inter-American Development Bank (IDB) ( email )

1300 New York Avenue NW
Washington, DC 20577
United States

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