Angel Ventures Pacific Alliance Fund II (IFC-40981)

Countries
  • Mexico
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
FI
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Mar 14, 2018
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
ANGEL VENTURES
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Equity
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 5.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Aug 6, 2018

Disclosed by Bank Feb 12, 2018

Contribute Information
Can you contribute information about this project?
Contact the EWS Team

Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

This project is an equity investment of up to US$5 million in Angel Ventures Pacific Alliance Fund II, an Ontario-domiciled venture capital fund which focuses on investing in early-stage technology companies in Mexico and the Pacific Alliance region. 

The International Finance Corporation says that the project will have the following development impacts:

  • Support investee growth and market innovation: Startups in emerging markets currently lack access to patient equity capital, global know-how and operational support that professional fund managers offer. Early stage companies need cash infusions in relatively quick successions as they achieve scale. Without adequate funding, they would not be able to sustain operations and be forced to abandon their pursuit of developing disruptive businesses. Access to equity is difficult for asset light businesses such as technology firms. IFC's commitment would provide the necessary patient capital to support and grow such innovative businesses.
  • Regional expansion of local businesses: The Fund will support an innovation ecosystem around its investees to maximize success potential, foster skills development, and provide a bridge to other markets in the region. The project is expected to reach over 20 early stage companies and improve operations with proper guidance.
Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

The International Finance Corporation has rated this project FI-3 in the environmental and social category. This rating corresponds to a C rating or low risk. 

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

International Finance Corporation proposed investment in this project is $5 million, not to exceed 20% of the aggregate commitments.

On top of its equity investment, IFC is expected to provide resources by way of IFC's sector experience and extensive portfolio in financial services, education, healthcare, internet and technology, which would be relevant for portfolio companies of the Fund.

Financial Intermediary
A financial intermediary is a bank or financial institution that receives funds from a development bank. A financial intermediary then lends these funds to their clients (private actors) in the form of loans, bonds, guarantees and equity shares. Financial intermediaries include insurance, pension and equity funds. The direct financial relationship is between the development bank and the financial intermediary.
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

Angel Ventures Pacific Alliance Fund II is an Ontario-domiciled venture capital fund focused on investing in early-stage technology companies in Mexico and the Pacific Alliance region.


Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

ACCOUNTABILITY MECHANISM OF IFC

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/

How it works

How it works