VALOR VENTURE FUND V, L.P. (IFC-49586)

Regions
  • Latin America and Caribbean
Geographic location where the impacts of the investment may be experienced.
Countries
  • Brazil
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
B
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
Jun 17, 2024
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
VALOR VENTURE FUND V, L.P.
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)
$ 40.00 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.
Project Cost (USD)
$ 200.00 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 Jul 23, 2024

Disclosed by Bank May 17, 2024

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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.

According to the Bank’s website, the proposed is an equity investment of up to US$20 million in Valor Venture Fund V (“Fund V”). Fund V is Cayman domiciled, investing in early-stage technology companies in Latin America (“LAC”), predominantly in Brazil.

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 Project consists of an investment in Valor Venture Fund V, focused in supporting early stages companies in Latin America. Aiming a 25-30 portfolio of pre seed, seed and series A investments seeking round leadership and board representation. The fund is sector generalist and pipeline include fintech, healthcare, AI and climate. Overall E&S risks associated with the potential pipeline are of a medium to low nature, therefore the Project has been classified as Category FI-2 according to the IFC's Sustainability Framework. The Fund will not invest in coal related activities or in any activities with significant E&S impacts such as (a) involuntary resettlement, (b) risk of adverse impacts on Indigenous Peoples, (c) significant risks to or impacts on the environment, community health and safety, biodiversity, cultural heritage, or (d) significant occupational health and safety risks will not be eligible.

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

An equity investment in the Fund, not to exceed 20% of the Fund’s total capital commitments, and a matching co-investment envelope to invest alongside Valor in select deals.

Investment approved by the Board: 40.0 million (USD)

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.

Fund V manager is Valor Venture Management LLC; GP is Valor Venture Partners V L.P., Cayman. Fund V is successor to the following early-stage funds: Valor Venture Fund I, a 2013 vintage fund with US$36.3 million in commitments, Valor Venture Fund II, a 2017 vintage fund with US$80.7 million in commitments, Valor Venture Fund III, a 2019 vintage fund with US$203 million in commitments, and Valor Venture Fund IV, a 2021 vintage fund with US$256 million in commitments. The Manager has also previously raised Valor Opportunity Fund I, a 2019 vintage, US$155 million growth-stage venture fund and Valor Opportunity Fund II, a 2021 vintage, US$122 million growth-stage venture fund.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Valor Ventures LLC Parent Company -

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.

Valor Capital Group
Scott Sobel
Partner
info@valorcapitalgroup.com

https://www.valorcapitalgroup.com/

ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://disclosures.ifc.org/#/inquiries

If you believe that your request for information from IFC has been unreasonably denied, or that this Policy has been interpreted incorrectly, you can submit a complaint at the link above to IFC's Access to Information Policy Advisor, who reports directly to IFC's Executive Vice President.

ACCOUNTABILITY MECHANISM OF IFC/MIGA

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

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How it works