Newtopia Closes $50M Fund for Latin American Startups

Newtopia VC Launches $50 Million Fund for Latin American Startups

A new venture capital fund, Newtopia VC, has officially begun operations, securing $50 million in capital. This funding is designated for investment in technology startups located throughout Latin America.

Investment Strategy and Stages

Newtopia VC’s investment approach centers on providing financial support at crucial stages of a startup’s development. Initial investments of $100,000 will be allocated to pre-seed companies.

Subsequently, the fund will contribute between $250,000 and $1 million to startups in the seed stage. This capital is intended to facilitate the achievement of key milestones, preparing them for subsequent Series A funding rounds.

Leadership Team

The fund is guided by a team of five prominent figures deeply embedded within the Latin American entrepreneurial landscape:

• Patricio Jutard, a co-founder of the collaborative whiteboard platform, MURAL;
• Mariano Mayer, previously the national secretary for entrepreneurs and SMEs in Argentina, and the founder of Marea Venture Partners;
• Sacha Spitz, a co-founder and partner at Yavu Ventures, and formerly a director at the Universidad de San Andrés incubation program;
• Jorge Aguado, who served as the national science, technology and innovation secretary in Argentina;
• Juan Pablo Lafosse, the founder and former CEO of Almundo.

Existing Portfolio

Newtopia VC has already begun deploying capital, making investments in startups across Mexico, Brazil, and Argentina. These include:

• Aleph (a B2B SaaS provider for e-commerce);
• Apperto (focused on social commerce);
• Choiz (a healthtech company);
• Inipay (a fintech solution);
• Leef (dedicated to sustainability);
• Wibson (specializing in e-privacy);
• Yerbo (a wellness brand).

Addressing a Market Gap

Mariano Mayer highlighted the increasing interest from global venture capital firms – such as Sequoia Capital, Andreessen Horowitz, and SoftBank – in Latin American ventures, particularly those at later stages of growth.

He also acknowledged the success of regionally-focused firms like Kaszek, which manages $1 billion in funds. However, Mayer identified a significant opportunity to support companies during the seed stage and their progression towards Series A funding.

“We are aiming to empower entrepreneurs during these critical phases,” Mayer stated. “Newtopia VC emerged from discussions during the pandemic, recognizing the substantial momentum for transformation across traditional industries and the availability of skilled talent.”

Mentorship and Community Support

Beyond financial investment, Newtopia VC offers a comprehensive mentorship program designed to guide startups through their initial phases of development. This support is intended to facilitate both regional and global expansion.

The fund has cultivated a network of over 70 founders who will contribute as investors, advisors, and venture partners to the portfolio companies.

The Newtopia 10-Week Program

The Newtopia 10-Week Program is a core component of the fund’s offering. It assists companies in achieving product-market fit, reaching initial objectives, and establishing a solid foundation for sustained growth.

Currently, Newtopia VC is accepting applications and will select 10 startups to participate in the program, each receiving $100,000 in funding.

Fueling the Venture Ecosystem

Mayer believes that by focusing on early-stage investments, Newtopia VC will strengthen the broader venture capital ecosystem, providing a pipeline of promising companies for later-stage investors.

He anticipates continued growth in investment activity within Latin America, citing a record $4 billion invested across the region, resulting in the emergence of numerous unicorns, including MURAL, which secured $50 million in July.

Building a Supportive Network

Jutard emphasized that the fund’s founders were already actively involved in investing and mentoring startups independently. The new funding will allow them to formalize and scale these efforts, assisting a significantly larger number of companies.

“Early-stage founders often experience feelings of isolation and face challenges in sales and recruitment,” Jutard explained. “Our focus is on creating a strong community of support to address these hurdles.”

Note: Exactly (DeFi) and Elevva (e-commerce brands) have been removed from the initial list of investments due to an internal error.