TIM teams up with VC group for first LatAm telco-backed 5G fund

Brazilian telecom operator TIM teamed up with Latin American VC fund Upload Ventures to create an investment fund for 5G solutions and projects.

The initiative, the first of its kind by a regional telecom operator, has been in development for one year, as BNamericas previously reported.

Overall, TIM and Upload eye US$250mn for the fund, fed by allocations from national and international investors, with TIM contributing up to US$50mn over the next two years.

The 5G fund is expected to make 8-10 investments, with average contributions between US$20mn and US$25mn each, over two or three years and especially in Brazilian companies, said TIM.

The preference is for early-stage companies, but with validated and consistent business models.

The VC group already has 12 companies mapped as potential targets for the first two years of the fund's operation.

While the telco is the main investor, TIM said the goal is to open the fund. TIM aims at companies and projects in its main verticals of interest in the B2B segment, namely agribusiness, health, transportation, logistics and mining.

In addition to financial contributions, invested companies will rely on TIM's industrial and technological assets to leverage growth, according to the carrier.

Upload will be responsible for the entire fundraising process, mapping, analyzing and choosing opportunities and, subsequently, monitoring the results of selected companies.

At present, Upload has 14 investees in its portfolio, including startups focused on HR, health, crypto, finance, real estate and consumer services, with operations in Brazil, Mexico, Colombia and other regional markets. 

Among these are Brazilian systems integrator Digibee, Mexican property tech Neivor and analytics platform Birdie, founded by Brazilian entrepreneurs in the Silicon Valley.