49586 - VALOR VENTURE FUND V, L.P.

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Summary of Investment Information

Project Number

49586

Company Name

VALOR VENTURE FUND V, L.P.

Date SPI Disclosed

May 17, 2024

Country

Latin America and the Caribbean Region

Region

Latin America and the Caribbean

Projected Board Date

Jun 17, 2024

Environmental Category

FI-2 - Limited

Status

Active

Last Updated Date

Jul 10, 2025

Department

Equity Portfolio Management

Industry

Funds

Previous Events

Approved : Jun 25, 2024
Signed : Jun 26, 2024
Invested : Jul 8, 2025

Sector

Venture Capital Fund

Project Description

The proposed is an equity investment of up to US$20 million in Valor Venture Fund V (“Fund V”). Fund V is Cayman domiciled, investing in early-stage technology companies in Latin America (“LAC”), predominantly in Brazil.

Associated Advisory Engagement

N/A

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	40.0

Development Impact

The Fund is expected to increase access to early-stage venture capital financing and value creation services for technology startups in Brazil, resulting in business growth. A material share of investees is expected to have a women co-founder, thereby addressing gender divides. The project is also expected to strengthen market integration in the traditional real and financial sectors in Brazil, through the expansion of investees with disruptive business models, via demonstration and replication and/or competition and innovation channels.

IFC’s additionality is both financial and non-financial. Financial additionality includes the provision of IFC’s own equity at the Fund's first close, thereby supporting the Fund Manager to achieve its overall target fund size and implement its investment strategy in Brazil. A co-investment envelope will also be part of the proposal. Non-financial additionality involves non-commercial risk mitigation and trusted partnerships, by encouraging other investors to invest in the Fund and signaling comfort through IFC governance, standard settings, and Limited Partnership Agreements.

E&S Category Rationale / Risks and Mitigation

The Project consists of an investment in Valor Venture Fund V, focused in supporting early stages companies in Latin America. Aiming a 25-30 portfolio of pre seed, seed and series A investments seeking round leadership and board representation. The fund is sector generalist and pipeline include fintech, healthcare, AI and climate. Overall E&S risks associated with the potential pipeline are of a medium to low nature, therefore the Project has been classified as Category FI-2 according to the IFC's Sustainability Framework. The Fund will not invest in coal related activities or in any activities with significant E&S impacts such as (a) involuntary resettlement, (b) risk of adverse impacts on Indigenous Peoples, (c) significant risks to or impacts on the environment, community health and safety, biodiversity, cultural heritage, or (d) significant occupational health and safety risks will not be eligible. IFC’s applicable E&S requirements for this project will be the Exclusion List, relevant E&S laws and regulations, and the IFC's Performance Standards (as applicable).

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
Rivio	Brazil	O-KB- Credit Information Services

Valor is an existing client, having developed and implemented an ESMS that includes policy, procedures, responsibilities and tools for undertaking E&S risks management. All potential investments are categorized and screened against the IFC exclusion list, legal E&S review and key E&S risks questionnaires through desk review and/or site visits. For potential investees with E&S performance gaps, a corrective action plan is included in the investment documentation. Valor periodically monitors its investees and portfolio companies must report both financial and non-financial performance indicators, including E&S themes, on a quarterly basis. One of Valor’s Principal is directly responsible to oversee the implementation of the ESMS and review of ESDDs. Investment officers and analysts are involved in the E&S risk screening and receive regular training. Through website, corporate phone (voice and text) contact, Valor can receive and respond to third party concerns. As part of this Project, the client shall revise and enhance its ESMS procedures to screen potential investees against the Performance Standards as applicable. This will entail revising the following E&S support tools: i) categorization tool and guidelines; ii) due diligence questionnaires (full and simplified version); and iii) monitoring tool.

Title	Anticipated Completion Date
ESMS Enhancement	09/28/2024
Staff Training	12/27/2024

Contacts

For Inquiries About the Project, Contact

Valor Capital Group
Scott Sobel
Partner

info@valorcapitalgroup.com

https://www.valorcapitalgroup.com/

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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.

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