MIF approves equity investment in seed capital fund

Friday, December 9, 2011

The Multilateral Investment Fund (MIF), a member of the IDB group, has approved a US$4mn equity investment in Angel Ventures Fund I, which will invest in knowledge-intensive, technology-based firms in Mexico, IDB said on its website.

Through this project, MIF and Angel Ventures México, the fund's manager, will contribute to financing early stage companies through seed capital in Mexico. The fund will match qualified angel investments in innovative projects and startup companies with high growth potential, as well as in existing early stage companies that are relatively new and need support to scale up.

The fund will target companies that have capital requirements of US$200,000 to US$2mn, and present high growth potential and a scalable model. The capital contributed by the fund will represent between 20% and 50% of each project's total size. Up to 25 projects and early stage companies will receive seed financing.

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The fund intends to target five sectors it says are most relevant - technology companies capable of rapid growth to meet rising domestic demand from low and middle-income segments of the population; healthcare; manufacturing; retail; and companies whose business models focus on benefiting vulnerable sectors of the population or on the environment.