Newtopia closes the first $ 50 million fund to invest in Latin American startups – TechCrunch

Early stage venture capital fund Newtopia VC launched Monday with $ 50 million to invest in Latin American-based tech startups.

The fund will invest between $ 250,000 and $ 1 million in early stage startups to help them achieve the necessary milestones along the way to build a Series A.

Newtopia is led by five main players in the regional business ecosystem:

  • Patricio Jutard, co-founder of MURAL;
  • Mariano Mayer, former national secretary for entrepreneurs and SMEs in Argentina and founder of Marea Venture Partners;
  • Sacha Spitz, co-founder and partner of Yavu Ventures and former director of the incubation program at the University of San Andrés;
  • Jorge Aguado, former national secretary of science, technology and innovation in Argentina;
  • Juan Pablo Lafosse, founder and former CEO of Almundo.

The group has already invested in startups in Mexico, Brazil and Argentina, including Aleph (B2B SaaS for e-commerce), Apperto (social commerce), Choiz (healthtech), Exactly (DeFi), Elevva (e-commerce brands), Inipay. (fintech), Leef (sustainability), Wibson (e-privacy) and Yerbo (well-being).

Mayer told TechCrunch that he sees a great moment in Latin America around global venture capital firms, such as Sequoia Capital, Andreessen Horowitz and SoftBank –placing bets in the region, especially aimed at investments in later stages. There are also homegrown venture capital firms doing well, citing Kazek’s $ 1 Billion Funds.

“However, we see a gap in investments in seeds and on the way to Series A,” he added. “Our goal is to help entrepreneurs in these stages. Newtopia began with conversations during the pandemic, and now we see a great momentum for the transformation of traditional sectors and the talent to do business from these opportunities.

Newtopia offers investment and a hands-on mentoring model to guide startups through the initial stages so they can grow regionally or globally. The fund has already amassed a community of more than 70 founders to invest in, advise, and be venture partners of portfolio companies.

Newtopia’s 10-week program works with companies to find the right product to market, achieve initial goals, and lay the foundation for further growth. The firm opened the call for applicants and will select 10 startups to receive a place in the program and $ 100,000 each.

By taking the lead in investing in the early stages, you will feed into the rest of the venture capital firms that are making investments in the later stages, Mayer said.

He sees investments growing in Latin America each year, estimating that there was a record $ 4 billion spread across the region, turning some companies into unicorns, including Jutard’s Mural, which raised $ 50 million in July. That has more than validated that there will be more money in the coming years, Mayer added.

Jutard said the fund’s founders were investing or advising companies on their own, but the new funding will allow them to structure that assistance to help hundreds of startups instead of just a handful.

“Early stage companies go through an emotional roller coaster where they feel lonely, they encounter times where it is difficult to sell their product or recruit, so we are focused on building a community of support,” added Jutard.

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