Virginia VC closes seed, pre-seed fund to support LatAm FinTechs

Virginia-based venture capital enterprise Qed Investors has concluded a $12m network-driven fund to bolster seed and pre-seed FinTech companies in Latin America.

According to Qed, the fund will expand the company’s reach across the region’s business models and teams. The fund will be named Fontes – the Latin translation for fountains.

The VC said commitments to Fontes will come predominantly from its deep network with Latin America, which involves a range of founders and managers from a combination of some of the region’s best FinTechs.

Fontes investments will be reinforced by Qed partners as well as entrepreneurs in Latin America, a move which will aid the company in tapping into local knowledge and expertise.

The fund will be led by Qed Partner and Head of International Investments Bill Cilluffo.

Established in 2007, Qed is a boutique VC firm focused on investing in early-stage financial services business in the US, Southeast Asia, Latin America and the UK. To date, the business has invested in companies such as Loft, Klarna, Nubank, Clearscore, Creditas, Mission Lane and GreenSky amongst others. To date, the VC has made 172 investments globally.

Qed co-founder Nigel Morris said, “It is clear there is a massive gap in the market for pre-seed and seed investments throughout Latin America. Since Qed made its first investment in the region in Nubank in 2015, the ecosystem has flourished. Qed via Fontes can serve to accelerate and promote disruptive business formation through this platform.

“We’re excited to extend Qed’s substantial track record in Latin America fintech while also leveraging Qed’s global experience.”

A recent report by Fintech Global found that over the first quarter of 2021, FinTech companies in the Latin American region raised a total of $1.1bn.

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