In partnership with Swiss-based investment holding company xMultiplied, Seedstars recently launched Seedstars Capital, an investment platform for emerging venture capital (VC) fund managers.
Seedstars, in a statement, said that the platform partners with “emerging and diverse managers with local expertise and unique strategies and provides the necessary resources to launch new funds and develop their investment firms.”
Also, it acts as a catalyst for investments into these early-stage firms by providing investors a diversified allocation solution to the asset class within emerging markets.
With the launch of the platform, Seedstars hopes to drive over $500 million in new funding into emerging and diverse managers, who are expected to create more than 10,000 new jobs and generate over $20 billion worth of additional GDP across emerging markets in the next 10 years.
“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.
Langer added that for limited partners, “the growing number of new managers makes it difficult to identify the best-performing and most impactful strategies.”
He said that by pooling their assets and bringing them under their community, they are able to help 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.
Despite the exponential growth of the VC industry across emerging markets in recent years, most early-stage VC funds raised remain small in size (i.e. below $50m AUM). These are also raised by an increasing number of new and diverse teams with limited track record and resources, which reduces the amount that capital limited partners could deploy to these skillful and highly talented managers.
In addition to the recent launch of Seedstars Capital, Seedstars would also be launching soon, funds that are focused on edTtech, supply chain, climatetech and other impact sectors with outstanding rising managers in emerging markets.
This new endeavor is in collaboration with a number of additional sector-specific technology funds, active from Pre-Seed to Series A, in emerging and frontier market.