43307 - VALOR VENTURE FUND III, LP

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Summary of Investment Information

Project Number

43307

Company Name

VALOR VENTURE FUND III, LP

Date SPI Disclosed

Nov 20, 2019

Country

Brazil

Region

Latin America and the Caribbean

Projected Board Date

Dec 18, 2019

Environmental Category

FI-3 - No Impact

Status

Active

Last Updated Date

Dec 21, 2023

Department

CDFVC - Disruptive Technologies and Funds/VC Funds and ISC Funds

Industry

Funds

Previous Events

Approved : Dec 18, 2019
Signed : Dec 20, 2019
Invested : Jan 27, 2020

Sector

Venture Capital Fund

Project Description

The proposed is an equity investment of up to $25M in Valor Venture Fund III (“Fund III”) and up to $10M in Valor Opportunity Fund I (“VOF I”). Both funds are Cayman domiciled, investing in early stage technology companies in Latin America (“LAC”), predominantly in Brazil.

Associated Advisory Engagement

There are no Advisory Engagements associated with Fund III or VOF I at this stage.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	50.0

Development Impact

1. Increased access to early and expansion stage equity for technology companies in Brazil. Access to VC in Brazil has increased significantly over the last few years but remains low compared to the size of its economy. The seed and series A segment (which Valor Fund III operates in) represents 20 percent of volumes and the series B and C stage segment (which the Opportunity Fund will operate in) represents 35 percent of VC volumes. Within this context, Valor will provide access to capital across an investee's lifecycle through its Valor Fund III and Opportunity Fund. 2. Increased investee growth. Valor Fund III and the Opportunity Fund will leverage their US networks and entrepreneurial background to provide value-creation for investees throughout their lifecycle. 3. Increased competitiveness of key markets through the support of market-disrupting digital business models: VC funds such as Valor invest in companies that often introduce a disruptive digital business model in a market. These innovative businesses can put pressure on incumbents to compete on prices and service quality. They can also strengthen supply chains by reducing the role of brokers and intermediaries, which improves price transparency and efficiency.

1. Own account equity: IFC's re-commitment to the Fund manager will enable both funds to reach their target size, while also getting operational support from a long-term patient investor with local knowledge in the region. The Opportunity Fund is a new fund with a different strategy to the previous Valor Funds, thus IFC's equity will be particularly important in validating this fund. 2. Non-commercial risk mitigation: IFC's re-commitment will demonstrate IFC's endorsement of the strategy and the intent to form a long-term partnership and is expected to send a signal of support to existing investors. 3. Knowledge, innovation and capacity building: IFC will continue to deliver additionality by sharing its knowledge and networks with the Fund Manager and its investee companies.

E&S Category Rationale / Risks and Mitigation

The proposed Project entails an IFC's equity investment in Valor Venture Fund III, a venture capital fund focusing on investments in non-manufacturing early-stage technology companies in areas such as education technologies, fintech, health-tech and wellness, logistics, SaaS, and digital marketing. The Environmental and Social (E&S) risks and impacts inherent to the proposed activities to be supported are small in nature and related mostly to labor and working conditions, therefore the project has been categorized as FI-3 in accordance with the IFC Sustainability Framework. The Fund Manager has an existing E&S system in place to screen investee companies against the IFC exclusion list, applicable E&S regulations and key E&S risks. The Project will require Fund III to apply this system to assess all investee companies against IFC’s Exclusion List and relevant host country E&S laws and regulations. The Fund Manager will also be 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
Meru	Mexico	Q-AA - Wholesale (Including Grocery and Farm Products)
Migo	United States	R-BA - Computer Systems Design and Related Services (System Integration, Custom Computer Programming, IT Services etc.)
Taboom	Brazil	N-BB - Content (B2C Companies)
Loopa	Brazil	O-CA - Finance Companies
Alicerce	Brazil	X-XY- Other
Aprende	United States	X-XY- Other
Beam Eco	United States	R-BA- Computer Systems Design and Related Services (System Integration, Custom Computer Programming, IT Services etc.)
Caliza	Brazil	X-XY- Other
Celo	Brazil	X-XY- Other
CERC	Brazil	X-XY- Other
CI Solfacil	Brazil	X-XY- Other
Dapper Labs	Canada	R-BA- Computer Systems Design and Related Services (System Integration, Custom Computer Programming, IT Services etc.)
Decimals RunOps	Brazil	R-BA- Computer Systems Design and Related Services (System Integration, Custom Computer Programming, IT Services etc.)
Dolado	Brazil	X-XY- Other
Domain	United States	X-XY- Other
Elevendocs Docket	Brazil	R-BA- Computer Systems Design and Related Services (System Integration, Custom Computer Programming, IT Services etc.)
Franq	Brazil	X-XY- Other
Gaivota	Brazil	X-XY- Other
Hashdex	Brazil	X-XY- Other
Iterative Scopes	United States	X-XY- Other
Jobzi	Brazil	X-XY- Other
Lemon	Argentina	X-XY- Other
Merama	Brazil	X-XY- Other
Parafi Ledn	United States	X-XY- Other
Parity Parfin	Brazil	X-XY- Other
PatternAg	United States	X-XY- Other
Quansa	Brazil	X-XY- Other
Quasar	Brazil	X-XY- Other
Rocketchat	Brazil	X-XY- Other
Sami	Brazil	X-XY- Other
Sanar	Brazil	X-XY- Other
Valoraapp	United States	X-XY- Other
XP Health	United States	X-XY- Other

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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