To train new, diverse VC managers, Seedstars launched ‘Seedstars Capital’ platform
With the assistance of xMultiplied, an investment holding firm with its headquarters in Switzerland, Seedstars has developed Seedstars Capital, an investment platform for new venture capital (VC) fund managers.
Incubating, accelerating, and investing in first-time and emerging venture capital funds operating in the pre-seed through Series A stages across complementary regions and industries, Seedstars Capital is an alternative investment platform with a focus on developing and frontier markets.
The platform collaborates with young, diverse managers with local knowledge and distinctive methods, and it offers them the resources they need to start new funds and grow their investment businesses. By offering investors a diverse option for asset class allocation in developing economies, it also serves as a motivator for investments in these early-stage companies.
Despite the exponential growth of the venture capital (VC) industry across emerging markets in recent years, the majority of early-stage VC funds raised are small in size and raised by an increasing number of new and diverse teams with limited track records and resources, which limits the amount of capital limited partners can deploy to these skilled and highly talented managers.
By collaborating with new and diverse managers to develop their strategies and offering the resources of its sizable community of limited partners, mentors, experts, physical locations, tech, and administrative infrastructure, Seedstars aims to close those market inefficiencies. Seedstars is creating a worldwide platform of effective and high-performing strategies in developing markets by combining these teams and resources.
“We believe the venture capital industry needs to be more open and inclusive and we find highly talented managers across emerging markets. Unfortunately, most lack the scale and resources to attract institutional limited partners and depend on local funding to deploy their strategies and create the impact they long for,” said Benjamin Langer, partner of Seedstars Capital.
“For limited partners, the growing number of new managers makes it difficult to identify the best performing and most impactful strategies. By pooling their assets and bringing them under our community, we can accelerate the growth of rising managers while offering limited partners the visibility and investment vehicles they need to increase their allocation to the asset class.”
Seedstars International Ventures, an industry-neutral pre-seed, and seed-stage emerging and frontier market fund, is the first fund the platform has created. The fund just announced its first close, and renowned limited partners including IFC, the Visa Foundation, the Rockefeller Foundation, and Symbiotics supported it and made commitments.
Additionally, the platform collaborates with Seedstars Africa Ventures, a fund with a regional emphasis that supports businesses on the African continent. Additionally, Seedstars is now planning to build funds with great rising managers in developing markets that will be announced shortly and that will be focused on ed-tech, supply chain, climate-tech, and other impact sectors.
