Positive Ventures Secures $10 Million in New Funding

Positive Ventures, a venture capital firm located in São Paulo, has successfully raised $10 million for its most recent investment fund.

The capital was contributed by a notable group of Limited Partners (LPs). These include prominent investor Luis Stuhlberger, who is a founding partner at Verde Asset Management.

Teresa and Cândido Bracher, with Cândido Bracher formerly serving as chairman of Itaú-Unibanco – Brazil’s leading financial institution – are also among the fund’s backers.

Focus on Impact Investing

Positive Ventures defines its core purpose as investing in startups that generate both financial returns and positive environmental or social outcomes with every revenue dollar earned.

Fabio Kestenbaum, co-founder and co-CEO, highlighted the significance of this investment approach, particularly within the context of Brazil’s history with corruption.

Kestenbaum established the firm alongside Andrea Oliveira and Bruna Constantino.

Commitment to Global Standards

The firm aligns its operations with the principles of the United Nations Global Compact initiative.

Furthermore, Positive Ventures boasts a high B Impact Score, signifying its dedication to integrating impact into its fundamental business strategy as a certified B Corporation.

Investment Strategy

Positive Ventures concentrates on early-stage companies – specifically seed and Series A rounds – that demonstrate the potential for substantial impact alongside strong financial performance, as stated by Kestenbaum.

The typical investment amount is $500,000, though the firm is capable of providing up to $1.5 million in subsequent funding rounds.

The firm actively seeks to support early-stage, impact-driven businesses developing innovative solutions to address significant issues related to inequality and climate change.

Expanding Reach

Murilo J ohas Menezes, a Partner and Chief Investment Officer (CIO), is stationed in the Bay Area.

He is responsible for overseeing the firm’s international strategy and investments in companies located outside of Brazil.

Investments

Positive Ventures maintains a sector-agnostic approach to investment. However, the firm prioritizes three key impact megatrends during its deal sourcing process.

• Planetary Boundaries, encompassing areas like sustainable systems, carbon reduction, and recycling;
• Social Resilience, with a focus on workforce development, financial services, and access to credit; and
• Institutional Voids, addressing critical challenges within emerging economies, particularly in education, healthcare, and the adoption of new technologies.

Kestenbaum previously emphasized the necessity of incentivizing private capital to tackle social and environmental issues. He stated that successful investments must deliver both positive impact and financial returns.

To date, Positive Ventures has provided backing to five companies through its new fund.

Labi Exames represents one of the firm’s initial investments. It subsequently became a crucial resource in Brazil’s response to the COVID-19 pandemic.

The company offered a cost-effective, high-quality testing alternative, reaching millions of uninsured individuals in underserved communities.

Labi also facilitated the safe reopening of businesses by providing continuous workforce testing.

Kestenbaum highlighted that this dual-value proposition established Labi as a leading health tech company in Brazil. This resulted in a monthly recurring revenue (MRR) growth exceeding 600%, paving the way for an upcoming Series B funding round.

Another significant investment by Positive Ventures was Slang, an application powered by artificial intelligence. Slang aims to address the widespread issue of English illiteracy in Latin America, with support from Chamath Palihapitiya of Social Capital and AllVP of Mexico.

Kestenbaum explained that less than 3% of the Brazilian population possesses proficient English skills. This deficiency significantly limits their employment opportunities and earning potential. A similar situation exists throughout Latin America.

Recently, Positive Ventures completed its largest investment to date in Provi. This B-Certified fintech company provides education-focused loans to enhance skills and employability within the Latin American workforce, beginning in Brazil.

Provi’s core mission is to transform education by offering accessible and impactful credit solutions.

The company has been a pioneer in implementing income-share agreements (ISAs) in the region. It has already facilitated over $30 million in credit, primarily directed towards technology and healthcare training programs.

Positive Ventures is currently preparing to launch a $30 million growth fund.