In an exciting development for the venture capital landscape, a prominent co-investment fund associated with a global entrepreneurial network is in the process of raising a substantial $300 million. This marks the fifth and largest fund for the organization, aimed at enhancing investments in high-growth startups across regions such as Africa, Latin America, the Middle East, and Southeast Asia.
Sources indicate that the fundraising efforts are still in the initial stages. The previous fund, which closed in 2022, raised $292 million. The firm has already initiated discussions with potential limited partners, including family offices, development finance institutions, and tech entrepreneurs from its extensive global network.
If successful, this new fund will elevate the total assets under management to over $800 million, solidifying its status as a key player in the venture capital scene within emerging markets.
Despite the challenging environment for many venture investors in emerging markets—characterized by sluggish exits and a tightening global capital landscape—this fund is optimistic about its ability to navigate these challenges and support promising companies in these regions.
Founded in 2012, the organization addresses a critical gap in venture capital for developing markets by providing access to growth-stage funding. Unlike traditional venture capital firms, this fund exclusively invests in entrepreneurs who have been selected by its global network, focusing on what it terms ‘high-impact entrepreneurs.’ It typically participates in equity rounds of at least $5 million, primarily during Series A to C funding stages, and collaborates with other institutional venture capitalists.
The organization identifies exceptional founders early on, offering them global mentorship and market access, and subsequently supports them when they seek to raise capital, without leading the rounds or imposing terms.
Linda Rottenberg, a co-founder of the organization, recognized the potential of overlooked founders in emerging and frontier markets to build significant companies with the right support. This insight, which began in Latin America, has laid the foundation for a global network that has successfully scaled numerous companies long before they attracted the attention of mainstream investors.
So far, this investment thesis has proven effective. Across its four previous funds, the organization has raised over $540 million and made more than 360 investments in 34 countries. Its portfolio includes 63 companies currently valued at over $1 billion, showcasing the potential of startups in these regions.
The fund also extends its support to startups in less active ecosystems in the U.S. and Europe, demonstrating its commitment to fostering innovation across diverse markets.
The launch of this fifth fund comes at a time when the venture capital landscape is markedly different from previous years. Following a boom in 2021, global venture capital activity has slowed significantly, with many investors retreating and follow-on capital becoming scarce in emerging markets.
Nevertheless, the New York-based investor has remained notably active, particularly in the last year. In the fourth quarter of 2024, the firm completed 13 new investments across seven markets, marking one of its most active quarters to date.
The performance of the fund has also contributed to its credibility, with over 30 portfolio companies successfully exiting through IPOs or acquisitions, demonstrating that high-growth outcomes are achievable in markets beyond the traditional hubs of the U.S., China, Europe, and India.
Moreover, the success of this fund is significant not only for its financial returns but also for its role in validating the investability of technology markets outside of Silicon Valley. As one of the few global venture capital firms focused exclusively on emerging markets, it plays a crucial role in showcasing the potential of these regions.
Backed by a diverse group of prominent investors and founders, the fund has garnered support from notable figures in the investment community. Additionally, many founders and entrepreneurs within its network are also limited partners, further strengthening its investment strategy.
Collaborations with firms such as General Atlantic, Tiger Global, and others highlight the fund’s commitment to fostering innovation and growth in emerging markets, ensuring that it remains a vital player in the global venture capital ecosystem.