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Magma Partners closes US$50 million fund

Don't worry, we speak : Español (Spanish), too!

Contxto – And that’s a wrap! Magma Partners, the venture capital (VC) in Chile has closed its US$50 million fund. The largest-ever raised by the VC since its 2013 founding.

Moreover, during this time it has completed 70 deals, from which there’ve been three exits. 

As far as upcoming plans go, it will be launching Magma Media, an internal unit that will help provide its portfolio companies with services that Magma’s partners wished they had when they were startup founders.

Related article: Top 7 Venture Capital funds in Chile

Magma on the lookout

Now that we know Magma has a hefty fund to disperse, the question is, what kind of startups is it looking for?

Some VCs are pretty vague about what they’re looking for, so long as there’s a tech component and show “high-growth potential.” You know, the cookie-cutter speech.

That’s not the case with Magma, as it knows exactly what it wants. 

The Santiago-based VC is searching for fintechs and insurtechs.

And because of the sensitive information these types of startups handle, they’ll need cybersecurity, anti-fraud, and identity management software. This is all tech Magma appreciates and is interested in exploring.

Biotechs and startups working with hardware are no-nos for the VC. In broad terms, it appears the VC will be sticking to its insurtech and fintech guns.

For seed rounds, it’s reported that Magma will continue to dish out checks ranging from US$50,000 to US$100,000. Meanwhile, larger investments will be in the US$5 million to US$7 million ballpark.

Related article: SoftBank to invest US$1 billion in Latin America in 2020

Mo’ money, more opportunities for Latam

When the VC started out, its first fund held US$2.5 million. The second time around it snagged US$21 million. Now with US$50 million, Magma is breaking its own record and it bodes well for future funding opportunities for Latin American startups and the region’s ecosystem.

We often address how maturing startups achieve profitability, achieve unicorn-status, expand abroad, all that jazz is the sign of a promising ecosystem. 

But hey, let’s not forget the players who fund it all, the VCs. 

And the fact that this time around it’s a Chilean fund that’s growing is nice a change of pace from Brazil who’s always taking the equity spotlight.

Related articles: Tech and startups from Chile!

-ML

Mariana López
My topic darlings are startup management, edtech, and all-things pop culture. J Balvin is Latin America's best reggaetonero and I dare you to convince me otherwise.

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