Announcing Nascent II: New fund, same model
We are excited to announce that we are back with our second vintage and ready to start deploying into what we think could be one of the most exciting company formation cycles yet.
This second $15m fund is a reflection of our belief that small funds, led by GPs embedded within their ecosystem, supported by an engaged community of LPs, outperform their benchmarks and provide real alpha and top decile returns. This approach has works to date and we are doubling down.
The fund is designed to back the next generation of LatAm founders at the very beginning of their journeys, writing large cheques at the inception stage.
Many of the funds LPs are leading Founders and VCs from across Latin America, the US and Europe - Including the founders of KAVAK, Bitso, Nexu, Ben & Frank, Belvo, Merama, 99 minutos, Klar, Prima, Attom Capital, Addem Capital, amongst others.
We have built this network driven community of founders that opens doors, shares expertise and in many cases collaborates directly with our founders. This community approach is a fundamental part of our model.
Accompanying startups goes far beyond injecting capital. Our team, with its experience as operators, works side-by-side with founders in areas critical to early growth: from defining go-to-market strategies and hiring the first key employees, to regulatory structuring and preparing for future funding rounds. This hands-on approach has been key to the success of companies such as Klar, Belvo and Worky, which see us as a true strategic ally.
In terms of performance expectations, Nascent aims to repeat and even exceed Fund I results (5.2x DPI). We expect to achieve this through our early entry strategy and conviction led approach.
Aaron Fu, Director, Venture Investments at DCG and Nascent LP explains: “In 2024, DCG backed four early-stage companies in Mexico as we continue to increase our activity in the region. Working with local, knowledgeable teams like Nascent VC’s, led by Archie, Victor, and Bernardo, has been invaluable. They are building a powerful platform for the region’s next wave of innovation.”
In addition to financial returns, our commitment to the development of the regional entrepreneurial ecosystem, co-founding initiatives such as Mexico Tech Week in 2023.
The macroeconomic context reinforces the opportunity that we aim to capitalise on in the coming years.
According to the Atlantico Digital Transformation Index (2024), technology companies in Latin America account for just 2.9% of regional GDP, compared to 7% in markets such as India. This gap implies an estimated $800 billion value creation opportunity in the coming years as more traditional industries adopt technology solutions.
Fund II has attracted investors from 10 different countries, demonstrating the growing global interest in Latin America’s technological potential. We will continue to focus on sectors where we have direct experience as founders or operators, maintaining our philosophy of investing with conviction at early stages and building long-term relationships with entrepreneurs.
With the first closing completed, we can’t wait to begin deploying capital in the coming months, seeking around 20 investment opportunities that meet our selection criteria and align with our vision of building lasting, regionally impactful technology companies.
Latin America is in the early chapters of a technology transformation story that will last for decades. We want to continue to identify and support the exceptional teams that will lead this change.
Until next time!
Archie, Victor and Bernardo
If you are interested in learning more about what we are building at Nascent, please reach out!
Archie@nascent.vc
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