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Innogen Capital Ventures, an El Salvador-based venture capital fund, has announced its second fund, ICV II, LP.
Innogen was established in 2018 in San Salvador, the capital of the Central American country. Its managing partners are Rodrigo Dumont, Christian Quinonez, Roberto Samayoa and Fernando Moran. The company is one of the few in Central America to invest in high-growth sectors such as healthcare, finance, artificial intelligence and e-commerce.
Some of their previous investments are Colombian foodtech Foodology, Argentinian blockchain company Koinbanx, and speech recognition and machine learning company Atexto from Mexico.
There are great opportunities in the technology sector in Latin America. The region is currently at a point where digital transformation has been a catalyst for the adoption of technological solutions in various traditional industries.
Innogen Capital’s geographic focus is Central America, Mexico, Colombia and the Caribbean, with a vision for growth in the rest of Latin America.
According to LAVCA (lavca.org), the Latin American private equity association, investment in venture capital is reaching all-time highs. In September 2021, investment in this area stood at US $ 11.5 billion, up from US $ 143 million 10 years ago. This is a trend that will continue to grow over the next decade.
Central American startups are gaining ground
Central America has become a fertile ecosystem for startups. Recently, the super delivery app Hugo caught the attention of European giant Delivery Hero, which acquired its business for $ 150 million.
Hugo, of Salvadoran origin, has 14,000 registered distributors, 7,600 affiliate companies and more than 1.3 million users, according to Forbes Mexico. They cross El Salvador, Costa Rica, Honduras, Guatemala, Nicaragua, Dominican Republic and Jamaica.
El Salvador is also consolidating itself as an attractive market for investors, especially in industries linked to technological innovation. This follows President Nayib Bukele’s decision to convert Bitcoin into legal tender in the country since last June.
The decree forced foreign investors and regional companies, such as Bitso, to start or expand their operations in the country.
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