IMPAQTO Capital proudly announces the successful closing of its inaugural fund, IMPAQTO Capital Fund I, exceeding its $2 million target by raising a total of $2.1 million.
This achievement positions the fund as a pioneering reference in revenue-based financing in the Andean Region, addressing the critical “missing middle” funding gap for impact startups.
IMPAQTO Capital Fund I has already invested in six high-potential companies: ELSA, Fibrazo, Sinba, Cusi, Quenco, and tuGerente, based in Ecuador, Peru, Colombia, and Bolivia. These startups tackle some of the region’s most urgent social and environmental challenges, from preventing sexual harassment and internet connectivity to sustainable food systems, circular economy, and income generation for SMEs.
“The successful closing of Fund I is not only a major milestone for IMPAQTO Capital but also a reflection of the untapped entrepreneurial potential in the Andean Region. The fund demonstrates that investing in impact startups here is not only possible but can generate transformative results,” said Justin Schwartz, Managing Partner at IMPAQTO Capital.
A Milestone for Impact in the Andean Region
IMPAQTO Capital Fund I addresses a critical gap in the Andean entrepreneurial ecosystem by offering innovative financing tailored to early-stage impact startups. Revenue-based financing provides growth capital without diluting ownership, a crucial model in regions where traditional funding is often inaccessible or misaligned with local realities.
Portfolio companies have already generated significant impact:
- 177,000 lives positively affected through access to essential services and sustainable livelihoods.
- 3,550 tons of CO₂ mitigated, advancing climate action.
- 243 jobs created, with 51% occupied by women.
- Progress in gender equity, with 67% of portfolio companies co-founded by women and 42% of leadership roles held by women.
“This milestone reinforces our commitment to invest in entrepreneurs transforming their communities while addressing global challenges,” stated Michelle Arévalo-Carpenter, General Partner at IMPAQTO Capital.
Catalytic Partnerships Driving Transformative Solutions
The fund’s success has been made possible thanks to 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, and WCCN. These partnerships provide not only financial backing but also expertise and networks that amplify the fund’s mission.
Through investments ranging from $50,000 to $200,000 via flexible debt instruments like revenue-based financing, IMPAQTO Capital Fund I equips entrepreneurs with the tools needed to scale solutions addressing 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 proves the power of close-knit fund managers who deeply understand regional challenges and opportunities. This achievement sends a clear signal to co-investors and global actors: the Andean Region is ready for transformative and collaborative investments that generate financial returns and significant impact,” expressed Michelle Arévalo-Carpenter. “We are proud to catalyze innovative solutions here, where extraordinary talent and potential often lack funding.”
As IMPAQTO Capital Fund I continues building its portfolio of 12–15 companies, it is catalyzing sustainable economic growth and innovation across the Andean Region. The message is powerful: impact investing can thrive in emerging markets, unlocking opportunities and generating meaningful change.
For more information about IMPAQTO Capital and its mission, visit www.impaqtocapital.com
