40333 - Valor Venture Fund II, LP

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Summary of Investment Information

Project Number

40333

Company Name

VALOR VENTURE FUND II, LP

Date SPI Disclosed

Nov 10, 2017

Country

Brazil

Region

Latin America and the Caribbean

Projected Board Date

Jan 11, 2018

Environmental Category

FI-3 - No Impact

Status

Active

Last Updated Date

Dec 21, 2023

Department

Equity Portfolio Management

Industry

Funds

Previous Events

Approved : Jan 11, 2018
Signed : Jan 11, 2018
Invested : Feb 22, 2018

Sector

Venture Capital Fund

Project Description

The proposed is an equity investment of up to $7M in Valor Venture Fund II, (“Fund II”), a Cayman domiciled venture capital (“VC”) fund focused on investing in early-stage technology companies in Brazil.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	14.0

Development Impact

1. Supporting innovation, creating markets and providing access to capital: 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. Thus, there is a significant role for governments and developmental finance institutions to play in helping to support and sustain entrepreneurship and innovation in underserved markets. 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. 2. Global expansion of local businesses: The Fund will support an innovation ecosystem around its investees to maximize success potential and foster skills development and international best practice. The project is expected to reach 25 early stage companies and improve operations with proper guidance. 3. Governance, and operational improvements: IFC will offer guidance and ensure that local businesses implement best practices in various fields.

1. Co-investments and knowledge share: IFC is expected to provide unique resources and experience 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. IFC's presence as a potential co-investment partner/ follow-on/ co-lead investor through IFC's VC and Fintech teams will provide the fund manager and its portfolio companies additional growth capital. 2. Signaling effect: IFC's presence would potentially open Fund II to a new, larger and diversified investor base and signal confidence among new investors. 3. E&S: IFC's focus on environment and social sustainability will ensure that best practices are passed on to investee companies.

E&S Category Rationale / Risks and Mitigation

The proposed Project entails an IFC's equity investment in Valor Venture Fund II, a venture capital fund focusing on investments in non-manufacturing early-stage technology Brazilian companies in areas such as education technology, fintech, SaaS, logistics, digital marketing and health-tech and wellness. The Project has been categorized as FI-3 in accordance with the IFC Policy on Environmental and Social Sustainability. The Fund's existing portfolio and proposed pipeline activities entail no or low E&S risks and negative impacts. The Project will be required to comply with IFC Exclusion List and relevant host country E&S laws and regulations, which will be managed through a simple environmental and social procedure to be implemented by the Fund. The Project is also required to inform IFC in the event of any material change in nature or scope of its portfolio activities.

In accordance with IFC's Access to Information Policy, IFC will periodically disclose the names, locations and sectors of sub-projects that have been supported by IFC investments through private equity funds, subject to regulatory constraints and market sensitivities. The sub-project(s) listed below reflect(s) the status of the portfolio as of January 1, 2025.

Investee	Country Of Investment	Sector
Arquivei	Brazil	X-XX- Other (For Non-Investment Projects)
BookingPal	United States	X-XX- Other (For Non-Investment Projects)
Botmaker	Argentina	X-XX- Other (For Non-Investment Projects)
Buser	Brazil	X-XY- Other
Caju	Brazil	X-XX- Other (For Non-Investment Projects)
Cloundwalk	Brazil	X-XX- Other (For Non-Investment Projects)
Cobli Valor II	Brazil	X-XX- Other (For Non-Investment Projects)
Gupy	Brazil	X-XY- Other
Icognia Inloco	Brazil	X-XX- Other (For Non-Investment Projects)
Loft	Brazil	X-XY- Other
Molten	United States	X-XX- Other (For Non-Investment Projects)
Olist	Brazil	X-XY- Other
Rain	United States	X-XX- Other (For Non-Investment Projects)
Revelo	Brazil	X-XX- Other (For Non-Investment Projects)
Rubicon Global Holdings	United States	X-XX- Other (For Non-Investment Projects)
TNH Health	Brazil	S-AC- Other Health Services
Worthix	United States	X-XX- Other (For Non-Investment Projects)
Zac	Brazil	O-LA- Rental Services

Contacts

For Inquiries About the Project, Contact

Valor Capital Group
Scott Sobel
Partner
212-803-7170

http://valorcapitalgroup.com

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This Summary of Investment Information (SII) is prepared by IFC to disclose a factual summary of the main elements of the potential investment. It also includes findings and recommendations related to environmental and social considerations regarding this potential investment. The purpose of the SII is to enhance the transparency of IFC’s activities. For any project documentation or data included or attached herein, whether prepared by the project sponsor or otherwise, authorization has been given for public release by the project sponsor. IFC considers that this SII is of adequate quality for release to the public, but has not necessarily independently verified all of the project information therein. It is distributed in advance of IFC Board of Directors’ consideration and may be periodically updated thereafter. Board dates are estimates only and this document should not be construed as presuming the outcome of the Board Directors’ decision. The following SII is disclosed in accordance with IFC's Access to Information Policy (AIP) that went into effect on January 1, 2012.

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