43308 - VALOR OPPORTUNITY FUND I, LP

Who We Are
Who We Are

IFC is the largest global development institution focused on the private sector in developing countries. By encouraging growth, IFC advances economic development, creates jobs and improves the lives of people.
More About Us
About IFC

Our Leadership

Development Partners
Accountability

Learn more about accountability
Annual Report

Download the Report
What We Do
What We Do

IFC advances economic development and improves the lives of people by encouraging the growth of the private sector in developing countries. We achieve this by investing in impactful projects, mobilizing other investors, and sharing expertise.
What We Do Overview
SOLUTIONS

Our products and services
OUR PRIORITIES

Climate Business

Fragile & Conflict Afflicted Situations

Gender

Mobilizing Private Capital

Sustainability
SECTORS & EXPERTISE

Agribusiness & Forestry

Creative Industries

Education

Financial Institutions

Funds

Health

Infrastructure

Manufacturing

Public-Private Partnerships

Tourism, Retail & Property

Trade & Supply Chain Finance

Venture Capital

Working Upstream
Where We Work
Where We Work

As the largest global development institution focused on the private sector, IFC operates in more than 100 countries around the globe. We apply lessons learned in one region to solve problems in another.
Overview
By Region

Africa

East Asia and Pacific

Europe

Latin America and the Caribbean

Middle East and Central Asia

South Asia
Our Impact
Our Impact

Our impact improves lives. IFC brings a clear set of advantages to the world’s most challenging markets. Including a history of innovation, a global mandate, and a determination to achieve measurable development impact.
Our Impact Overview
PRINCIPLES & MEASUREMENT

Impact Investing at IFC

Measuring and Monitoring (AIMM)

Evaluation

Sustainable Development Goals (SDGs)

Owned by 186 member countries and consistently rated AAA/Aaa. IFC aims to achieve our mission of promoting development by providing debt and equity to the private sector, through a range of benchmark and bespoke products.

For Partners

For Investors

Get in Touch

Summary of Investment Information

Project Number

43308

Company Name

VALOR OPPORTUNITY FUND I, 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

Equity Portfolio Management

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	20.50

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 Opportunity Fund I, 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
Badger	Mexico	X-XY- Other
Beep	Brazil	X-XY- Other
Betterfly	Chile	X-XY- Other
Buser	Brazil	X-XY- Other
Circle Internet Financial Limite	United States	X-XY- Other
CLOUDWALK	Brazil	X-XY- Other
Descomplica	Brazil	X-XY- Other
Gympass	Brazil	S-AC- Other Health Services
Kovi	Brazil	O-LB- Leasing Services
Loft	Brazil	X-XY- Other
Olist	Brazil	X-XY- Other
Pipefy	Brazil	X-XY- Other
Sontra	Brazil	E-AE- Other (Including General Freight Trucking)
Tembici	Brazil	X-XY- Other
Teya	United Kingdom	X-XY- Other

Contacts

For Inquiries About the Project, Contact

Valor Capital Group
Scott Sobel

212-803-7170

http://valorcapitalgroup.com

For Inquiries and Comments About IFC, Contact

General IFC Inquiries
IFC Communications
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384

IFC supports its clients in addressing environmental and social issues arising from their business activities by requiring its real sector clients to set up and administer appropriate grievance mechanisms and/or procedures to address complaints from Affected Communities in relation to environmental and social issues arising from IFC's clients' business activities. Since 2012, IFC's Financial Intermediary clients applying the Performance Standards are required to develop External Communications Mechanisms to receive and review inquiries or complaints from any interested party regarding the E&S risks and impacts of their operations.

For IFC projects that are active or under consideration, individual(s), or their authorized representative(s), who allege they have been or will be adversely affected by E&S risks or impacts arising from IFC's clients' business activities, may submit a complaint to IFC directly for consideration. When receiving an E&S complaint, IFC engages with complainants and works with its clients to find solutions to E&S concerns as quickly and efficiently as possible.

Complaints can be submitted to IFC online at www.ifc.org/escomplaints or by email to EScomplaints@ifc.org.

IFC complaint response is separate from and complementary to IFC’s clients’ project level grievance mechanisms and IFC’s Independent Accountability Mechanism (CAO). Lodging a complaint directly with IFC does not, at any time, restrict access to CAO.

Affected communities have unrestricted access to the Compliance Advisor Ombudsman (CAO), the independent accountability mechanism for IFC and MIGA. CAO facilitates the resolution of complaints related to IFC and MIGA projects and sub-projects, undertakes reviews of IFC’s and MIGA’s environmental and social compliance, fosters public accountability for their commitments, and enhances the environmental and social performance of IFC and MIGA.

Independent of IFC and MIGA management and reporting directly to the IFC and MIGA Boards of Executive Directors, CAO helps resolve issues raised about the environmental and social impacts of projects through a neutral, collaborative, problem-solving approach via its Dispute Resolution function. It also reviews IFC’s and MIGA’s compliance with environmental and social policies, assesses related harm, and recommends remedial actions through its Compliance function. Additionally, CAO provides advice to IFC, MIGA, and their Boards to enhance environmental and social sustainability performance and minimize the risk of harm.

Complaints may relate to environmental and social harm regarding any aspect of the planning, implementation, or impact of a project or sub-project, and can be made by any individual, group, community, entity, or other party affected or likely to be affected by the environmental or social impacts of an IFC- or MIGA-financed business activity.

Complaints can be submitted by any of the following methods:

Online form: available at https://www.cao-ombudsman.org/
Mail/Hand Delivery to: 2121 Pennsylvania Avenue, NW, Washington, DC 20433, USA
Voice mail: +1 202 458 1973
Email: cao@worldbankgroup.org
SMS, WhatsApp, Telegram, and Signal: +1 202 650 2627

CAO receives and addresses complaints in accordance with the CAO Policy, which can be accessed at: https://www.cao-ombudsman.org/policies-guidelines.

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.

The map is for illustrative purposes and does not imply the expression of any opinion on the part of the World Bank, concerning the legal status of any country or territory or concerning the delimitation of frontiers or boundaries. Country borders or names do not necessarily reflect the World Bank Group's official position. In some cases, available project location information is limited to the country of the project's activities. Locations are approximate.

Projects

Summary of Investment Information

Project Description

Associated Advisory Engagement

Sponsor / Cost / Location

Development Impact

E&S Category Rationale / Risks and Mitigation

Similar Projects

Contacts

Projects

Summary of Investment Information

Project Description

Associated Advisory Engagement

Sponsor / Cost / Location

Project Sponsor and Major Shareholders of Project Company

Total Project Cost and Amount and Nature of IFC's Investment

IFC's Investment as Approved by the Board

Location of Project and Description of Site

Development Impact

Anticipated Impact Measurement & Monitoring (AIMM) Assessment

IFC's Role and Additionality

E&S Category Rationale / Risks and Mitigation

Environmental & Social Categorization Rationale / Key Risks & Potential Impacts

Private Equity Funds Disclosure

Press-Release

Related Environmental Document

Similar Projects

Contacts

Information on E&S Complaints and Grievance Mechanisms

Disclaimer