Quito, Ecuador: January 21, 2025

 

IMPAQTO Capital proudly announces the successful final close of its inaugural fund, IMPAQTO Capital Fund I, exceeding its $2M target with a total of $2.1M raised. This achievement positions the fund as a pioneering force in revenue-based financing in the Andean region, while addressing the critical “missing middle” financing gap for impact-driven startups.

 

IMPAQTO Capital Fund I has already invested in six high-potential companies—ELSA, Fibrazo, Sinba, Cusi, Quenco, and tuGerente—headquartered across Ecuador, Peru, Colombia, and Bolivia. These startups tackle some of the region’s most pressing social and environmental challenges, from sexual harassment prevention and internet connectivity to sustainable food systems, the circular economy, and income generation for SMEs.

 

“The successful close of Fund I is not only a significant milestone for IMPAQTO Capital but also a testament to the Andean region’s untapped entrepreneurial potential. This fund demonstrates that investing in impact startups here is not only possible but can yield transformative results,” said Justin Schwartz, Managing Partner of IMPAQTO Capital.

 

A Milestone for Impact in the Andean Region

IMPAQTO Capital Fund I is filling a critical gap in the Andean entrepreneurial ecosystem by providing innovative financing tailored to early-stage impact startups. Revenue-based financing offers entrepreneurs growth capital without diluting ownership, a vital model in regions where traditional funding is often inaccessible or ill-suited to local realities.

The fund’s portfolio companies have already delivered significant impact:

• Positively impacting 177,000 lives through improved access to essential services and sustainable livelihoods.

• Mitigating 3,550 tons of CO2 emissions and advancing climate action.

• Creating 243 jobs, with women holding 51% of these roles.

• Advancing gender equity, with 67% of portfolio companies having at least one female co-founder and women occupying 42% of leadership roles.

 

"This milestone underscores our commitment to investing in entrepreneurs who are transforming their communities while addressing global challenges,” said Michelle Arévalo-Carpenter, General Partner of IMPAQTO Capital.

 

Catalytic Partnerships Driving Transformative Solutions

The fund’s success is bolstered by the support of an exceptional group of local and international Limited Partners (LPs), including Sorenson Impact Foundation, Full Spectrum Capital Partners, CREAS Ecuador, DF Impact Capital, Boosting Opportunities, WCCN, and UnTours Foundation. These partnerships bring not only financial backing but also expertise and networks that amplify the fund’s mission.

 

By investing between $50,000 and $200,000 through flexible debt instruments like revenue-based financing, IMPAQTO Capital Fund I is providing entrepreneurs the tools they need to scale solutions that address critical issues such as access to basic services, agricultural development, and climate change mitigation.

 

“The success of IMPAQTO Capital Fund I goes beyond the numbers—it’s a proof point for the power of proximate fund managers who deeply understand the challenges and opportunities within the Andean region. This fund’s success sends a clear signal to co-investors and global stakeholders: the Andean region is ready for transformative, collaborative investment that drives both financial returns and meaningful impact,” said Michelle Arevalo-Carpenter, General Partner of IMPAQTO Capital. “We are proud to catalyze innovative solutions here, where extraordinary talent and potential often go underfunded.”

 

As IMPAQTO Capital Fund I continues to build its portfolio of 12-15 companies, it is poised to catalyze sustainable economic growth and innovation across the Andean region. This achievement sends a powerful message: impact investing can thrive in emerging markets, unlocking opportunities and driving meaningful change.

 

For more information about IMPAQTO Capital and its mission, visit www.impaqtocapital.com