Based in Argentina, venture capital firm Draper Cygnus announced a new $50 million fund to invest in Latin American founded startups that solve global problems. The company aims to invest in deep tech startups in areas such as biotechnology, nanotechnology, space industry, IoT, artificial intelligence and crypto, among others.
Under that logic, Draper Cygnus is already investing tickets ranging from $ 500,000 (seed capital) up to $2 million (Series A). The company already invested in four Latin American unicorns (startups with over $ 1 billion valuation): Auth0, Satellogic, NuvemShop and MURAL.
“Our investment thesis has always been to bet on these types of companies and with this new fund we want to go even further, supporting Latin entrepreneurs, even when they don’t live in Latin America”, says Diego González Bravo, founder and managing partner of Draper Cygnus. “There are many Latin startups that are developing world-class science and technology requiring capital to continue going forward, not in the scope of traditional venture capital”.
The fund has Tim Draper — one of the first investors in companies such as Tesla, SpaceX, Coinbase and Robinhood — among its associates.
“In 2017 we partnered with Tim who in addition to investing in our fund, has made many co-investments in our portfolio companies”, says Ignacio Plaza, who founded Cygnus Capital back in 2012 along with Bravo, and later in 2017 transformed it into Draper Cygnus. “This was an important step for us and our portfolio, because we often help our startups to scale and raise money through our global network, the Draper Venture Network”, adds Plaza.
Draper believes the region is generating entrepreneurs with enormous talent. “We’ve had enormous success with the team led by Diego and Ignacio and I am very excited about what we will achieve with this new fund” says Tim Draper.
The group also anticipates that in the coming months, they will begin to raise a new investment vehicle, an Opportunity Fund to invest from series B rounds and onwards, this is, in those startups within the portfolio that are already scaling their business.