Global investment and education firm Seedstars, with the backing of Swiss-based venture capital firm xMultiplied, has launched Seedstars Capital, an investment platform for emerging VC fund managers.
The platform provides emerging and diverse managers with local expertise and unique strategies with the resources they need to launch new funds and grow their investment firms.
Additionally, it offers investors a diversified asset class allocation solution in emerging markets.
With the platform, Seedstars expects to provide over $500 million in new funding to emerging and diverse managers who will create more than 10,000 new jobs and generate over $20 billion in additional GDP in emerging markets over the next decade.
Despite the exponential growth of the emerging market VC industry in recent years, most early-stage VC funds are small (ie, under $50 million in assets under management). These funds have been raised by an increasing number of new and diverse teams with limited track records and resources, reducing the amount of capital LPs can commit to these skilled and highly talented managers.
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Seedstars seeks to bridge these market inefficiencies by collaborating with new and disparate managers to develop their strategies and leveraging the resources of its large community of limited partners, mentors, experts, physical locations, and technical and administrative infrastructure.
Benjamin Langer, Partner at Seedstars Capital, said: “We believe the VC industry needs to become more open and inclusive and we find highly talented managers in emerging markets. Unfortunately, most lack the scale and resources to attract institutional LPs and rely on local funding to implement their strategies and achieve the desired impact. For LPs, the growing number of new managers makes it difficult to identify the best performing and most impactful strategies. By pooling their wealth and bringing them into our community, we can accelerate the growth of emerging managers while providing limited partners with the visibility and investment tools they need to increase their allocation to the asset class.”
The first fund launched by Seedstars is Seedstars International Ventures, an industry-agnostic pre-seed and seed-stage emerging and frontier market fund. The fund recently announced its first closing and received support and commitments from notable LPs such as IFC, Visa Foundation, Rockefeller Foundation and Symbiotics.
The platform also works with Seedstars Africa Ventures, a regionally focused fund supporting businesses on the African continent. The fund has partnered with French private equity and wealth manager LBO France to fill the investment gap in the region.
Additionally, Seedstars is currently working to launch funds focused on edutech, supply chain, climate technology and other impact sectors, with outstanding emerging managers in emerging markets to be announced shortly.
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The article Seedstars launches investment platform to develop up-and-coming VC fund managers first appeared on e27.