Carao Ventures, a San Jose, Costa Rica-based regional venture capital firm, closed a new US$35m fund.
Founded in 2012 by Allan Boruchowicz and Adrián García, Carao secured this first closing of the fund with the support of a select group of regional and international investors, including the Inter-American Development Bank (IDB), the International Finance Corporation (IFC), and prominent family offices and high-net worth individuals from Central America, the United States, and South America. Subsequent and final closings will occur within the upcoming 12 months.
Carao Ventures Fund l, L.P., will target investments in early-stage startups from small- and medium-sized economies in Latin America. The fund will focus on investing in the most talented entrepreneurs from some of the most underserved markets by venture capital in the region and help them develop world-class technologies and innovative business models to disrupt traditional industries and create solutions for relevant human challenges.
The primary markets of focus for the fund will be Central America, the North Andean region (Colombia, Peru, and Ecuador), and the Dominican Republic. Also, Carao will target select opportunities in Argentina, Chile, and other small- to medium-sized Latin American countries, as well as Latin American founders based in the United States but with significant operations in the region.
The fund will invest in early-stage companies (Pre-seed through Series A rounds of financing) with a multi-step approach of investing early with the intent of participating in two to three follow-on investment rounds in the best performing companies. Furthermore, although the firm accumulates relevant experience in a handful of industries, the fund will remain sector agnostic.