Seedstars has launched Seedstars Capital, its investing platform for developing venture capital (VC) fund managers, with the assistance of xMultiplied, a Swiss investment holding firm.
The platform works with up-and-coming managers from a wide range of backgrounds and industries to help them grow and expand their businesses, including through the creation of new funds and the implementation of innovative investing methods. When investors are given a diverse allocation solution for the asset class in developing economies, it serves as a motivator for investment in these early-stage enterprises. Seedstars is dedicated to helping the world reach the United Nations Sustainable Development Goals, and it does so by including environmental, social, and governance (ESG) and impact (impact investing) criteria in its management selection process. Seedstars anticipates that its platform will result in more than $500 million in new capital for developing and diverse management,
which will in turn produce over $20 billion in extra GDP across emerging economies over the next decade by directly employing over 10,000 people. Most early-stage VC funds are quite modest in size (i.e., $50 million AUM) and are raised by a growing number of fresh and varied teams with limited track records and resources, which lowers the amount of cash limited partners may deploy to these skilled and highly competent managers. Seedstars aspires to address these gaps in the market by assisting a wide range of first-time managers in formulating effective business plans via access to its extensive network of limited partners, mentors, subject-matter experts, coworking spaces, and back-end support staff. Seedstars is creating a worldwide platform for high-performing and effective initiatives in developing markets by pooling together these teams and assets.
To paraphrase Seedstars Capital Partner Benjamin Langer, “We identify very skilled managers in emerging countries, and we believe the venture capital sector has to be more accessible and inclusive.” Most of these organizations, however, are too small or lack the resources to recruit institutional limited partners, so they must rely on local financing to put their initiatives into action and have the desired effect. Because of the increasing number of managers, limited partners often have a hard time choosing those with the highest returns and most influence. Incorporating these growing managers into our community and pooling their assets allows us to help them develop faster while providing limited partners with the transparency and investment vehicles they need to boost their allocation to the asset class. xMultiplied Managing Partner Vivek Chandaria says, “We joined with Seedstars given our mutual aim of producing wealth with beneficial effects throughout developing economies.” Financial development and market investment returns may be stimulated by giving promising new and diversified management a chance to implement their plans. Seedstars International Ventures is the first fund to be formed by the platform, and it is a pre-seed and seed-stage emerging and frontier market fund that is not specific to any one sector. Some prestigious limited partners, including the International Finance Corporation (IFC), the Visa Foundation, the Rockefeller Foundation, and Symbiotics, have committed to the fund since it announced its first close. Seedstars Africa Ventures, a fund dedicated to supporting businesses on the African continent, collaborates with the platform as well. To help fill this need in regional investment, the fund has teamed up with LBO France, a private equity and asset management firm based in France. In addition, Seedstars is now working on announcing the launch of funds focusing on EdTech, supply chain, ClimateTech, and other impact sectors with great rising managers in developing regions. More specialized technology funds, ranging from Pre-Seed to Series A, will be working with Seedstars to expand their reach into developing and frontier industries. Send an email to capital@seedstars.com if you’re looking for a business partner to collaborate with.
Play audio
No comments