Angel Ventures Pacific Alliance Fund II (IFC-40981)

Countries
  • Mexico
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
Bank Risk Rating
FI
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Mar 14, 2018
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
ANGEL VENTURES
The holder of the loan, grant, or other investment.
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, etc.
Investment Amount (USD)
$ 5.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. 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


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Project 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

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
  • International Finance Corporation (IFC)

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.

Private Actors
  • Angel Ventures Pacific Alliance Fund II -- Financial Intermediary

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

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/