The Project consists of an investment of up to US$10 million in the Valor Opportunity Fund I (“VOF I” or the “Fund”), which aims to provide growth equity for innovative and technology-enabled companies in Brazil.
VOF I will generally invest in mature venture-backed companies (Series B+) in technology, internet and services sectors. VOF I will be managed by Valor Venture Management, LLC (“Valor”). Established in 2014, Valor is one of the most active Venture Capital (“VC”) firms investing in Brazil with 9 unicorns in its track record. VOF I has been designed to capture upside from Valor’s promising portfolio companies.
The Fund will primarily invest in breakout portfolio companies, which require larger amounts of capital than the investments targeted by Valor’s early stage funds. VOF I may also invest in businesses that are not in the portfolios of those funds, including U.S. based global dominant technology companies seeking expansion in Brazil.
The investment is an opportunity to increase IDB Group’s support to the LAC tech ecosystem, channel additional resources to the sector through co-financing opportunities, and develop industry capacity with an experienced investor in the sector. IDB Group’s coordinated investments in VOF I and VVF III, through IDB Invest and IDB Lab, respectively, are an opportunity to deliver a comprehensive solution across the life cycle of technology and innovation start-up companies in LAC.