Chile-based financial services firm Consorcio has launched a $20m corporate venture fund to invest in Latin America-based startups developing financial technology, BNamericas has reported.
Venture capital firm HCS Capital Partners will manage the fund, which is targeting investments in Chile, Colombia, Peru and Mexico, with a particular focus on insurance technology.
The vehicle has launched with an initial $20m to invest over the next five years, though Consorcio is looking to secure an additional $60m in limited partner commitments.
Consorcio will provide companies with capital and mentoring to support their development, focusing on areas such as product testing and commercial partnerships. It recently invested $500,000 in payment services provider PagoFácil, which is also backed by human resources technology provider GINgroup.
Tomas Zavala, corporate development manager for Consorcio, said: “As smartphone penetration and access to mobile technology continues growing apace, it is startups, with disruptive solutions, that are increasingly driving financial inclusion and innovation in Latin America.
“By investing directly in exceptional startups and innovative companies, we can ease access to trends and ideas that are changing the industry, as well as find sources of future growth and collaborate in the scaling up and expansion of these companies.”