Seaya & Cathay Innovation Launch $125M LatAm Startup Fund

New Joint Fund Targets Latin American Startups

Venture capital firms Seaya Ventures and Cathay Innovation have collaborated to establish a new fund. This fund is specifically designed to support innovative startups throughout Latin America that are actively reshaping their respective industries and contributing to societal advancements.

Fund Formation and Management

Seaya Ventures, headquartered in Spain, and Cathay Innovation, based in France, officially joined forces in April. Subsequently, they established an operational office in Mexico City. From this location, they will oversee the $125 million Seaya Cathay Latam Fund.

The fund’s investment strategy will primarily focus on Series A and B funding rounds. Additionally, a portion of the capital will be reserved for subsequent follow-on investment opportunities.

Leveraging Existing Connections

Beatriz Gonzalez, founder and managing partner at Seaya Ventures, highlighted the enduring relationship between Spain and Latin America. She noted that her firm, founded in 2013, made its second investment in Mexico with Sin Delantal, which was later acquired by Just Eat.

“Historically, Spanish companies in sectors like finance and utilities have been expanding their operations into Latin America,” Gonzalez explained. “When we began in 2013, the funding landscape was less crowded. Today, the market is highly competitive.”

She emphasized that simply providing capital is no longer sufficient. Successful investment now requires a combination of funding, a strong network, and comprehensive support. This multifaceted approach is crucial for the current ecosystem.

Local Leadership and Investment Focus

Federico Gómez Romero, formerly leading LatAm operations for Accion Venture Lab, now spearheads the fund’s activities locally. The fund will target both consumer-facing and enterprise-level companies.

Investment will center on technologies within key areas, including fintech, proptech, mobility, healthtech, food, agriculture, and cybersecurity. Furthermore, the fund will leverage Cathay’s extensive corporate network for both investment and strategic partnerships.

Recent Investments and Portfolio Strategy

The team’s initial investment occurred in September, participating in a $230 million funding round for Chilean fintech Xepelin. Prior to this collaboration, both firms independently invested in companies across the region.

These previous investments include Mexico’s Kueski and Lana, Brazil’s Facily and alt.bank, and Colombia’s RobinFood and Chile’s Fracttal.

Fund Size and Partnership Rationale

Jacky Abitbol, managing partner of Cathay Innovation, stated that the Seaya Cathay Latam Fund intends to invest in 12 to 15 companies. Individual investments will range between $5 million and $10 million.

Abitbol explained that their firms had already collaborated on several investments, making a formal partnership a logical progression. “We aim to be a significant global player, and we identified opportunities to integrate into the local ecosystem,” he said.

“We share common values and a similar investment philosophy, leading us to combine resources to support larger funding rounds and utilize a platform built to empower founders.”