The sponsor of the Fund is vSpring Capital, LLC (“vSpring” or the “Sponsor”), a Delaware limited liability company and an experienced fund management team based in Utah. The Sponsor has investment experience in various sectors including healthcare, IT, internet, consumer, communications, education, and security. The Fund’s general partner entity is Alta Ventures Mexico Management, L.P., an Ontario limited partnership. The investment team, operating under Alta Ventures Mexico, S.C. as investment advisor (the “Fund Manager”) and led by Paul Ahlstrom and Rogelio de los Santos, will be responsible for deal sourcing, due diligence, and investment/divestment proposals. Additionally, vSpring has been engaged to provide management services and other back-office and administrative functions.

It is proposed that IFC invest up to $15 million but not more than 20% of the Fund’s total equity commitments. The Fund has a target size of $150 million.

10.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	10.0

* These investment figures are indicative

The Fund is a limited partnership registered under the laws of the Province of Ontario, Canada, and will have a local investment team based in Monterrey, Mexico. The Fund will seek investment opportunities across Mexico, and opportunistically, up to 20% of the Fund’s aggregate commitments to companies outside Mexico but with significant economic linkages to Mexico.

The Fund is expected to have a strong impact for private sector development as follows: -- Support of SMEs: The Fund is expected to allocate all of its commitment to SMEs. -- Private sector development: The Fund will add value to its investee companies, by providing managerial, operational and strategic support to improve their competitiveness and sustainability -- Economic development: The Fund is expected to invest in high-growth companies aiming to increase output, which in turn should lead to increased employment rates. -- Environmental practices: The Fund Manager will adopt international best practices for environmental and social risk assessment and management, and improve transparency and corporate governance, thus transferring knowledge and skills to portfolio companies

IFC’s role includes: -- Supporting the development of the Mexican venture capital industry: The project is part of IFC’s effort to help develop and support the nascent venture capital industry in Mexico. IFC held discussions with the Sponsor for an expansion into Mexico. With IFC’s support, the investment team conducted a series of surveys and discussions to assess the viability, build and support the foundations towards a successful venture capital industry. -- Catalytic role mobilizing additional institutional capital: The Fund needs a key investor that can add credibility the fund manager. IFC’s commitment will help the management team reach a critical size and increase its chances of closing the fund. -- Providing input on fund structure and terms: Drawing from previous experience, IFC will work with the Fund Manager in adopting best practice market terms that will attract private capital. -- Improving corporate governance: IFC will play an active governance role through its participation on the Fund’s Advisory Board.

This project has been classified as a Category FI project according to IFC’s Environmental and Social Review Procedure. During appraisal IFC will assess the potential E&S risks associated with the Fund’s expected portfolio and sectors of investment, and will review the Fund Manager''s capacity to manage such E&S risks and to establish and maintain a social and environmental management system (SEMS). IFC may suggest supplemental actions to address any gaps in the SEMS if required. Sub-projects financed by the Fund will need to comply with IFC FI Exclusion List, the applicable host country E&S laws and regulations, and the IFC Performance Standards (the Applicable Performance Requirements).

The Fund Manager will be required to: develop or upgrade a SEMS, prior to disbursement to the satisfaction of IFC and commit to implement the SEMS to ensure that its investments/activities are in compliance with the Applicable Performance Requirements; identify responsible, qualified persons to manage and implement the SEMS; and submit a periodic report to IFC.

IFC will review the implementation and performance of the Fund''s SEMS for the first few projects and all Category A projects prior to the Fund''s investment, to ensure the Fund''s SEMS is adequate to assess and manage E&S risks.