$15M Popular Impact Fund to support new businesses
Financial institution Popular Inc. announced the launch of the Popular Impact Fund, created with its own funds to make minority investments in private companies raising capital.
Popular has earmarked an initial $15 million for these investments in Puerto Rico, the U.S. Virgin Islands, and the United States mainland, it stated.
To continue fostering a culture of innovation, the fund seeks to invest in companies that provide strategic technology for the financial services sector and companies with a social impact.
The first company to receive investment in Puerto Rico will be Raincoat, which provides parametric insurance technology that enables its clients to extend coverage against weather-related disasters.
“We identified in Raincoat the opportunity to support a Puerto Rican fintech company that has the potential to grow globally and pave the way for other companies on the island to do the same,” said Popular Inc. CEO Ignacio Álvarez.
The Popular Impact Fund has already invested in other companies, such as Greenwood Inc., a digital bank committed to providing banking services to African American and Latino communities in the United States mainland while contributing to their development.
The fund will typically co-invest with other investors in the venture capital ecosystem. The fund’s investments will range from $250,000 to $1 million in companies from the seed stage to pre-IPO.
“At Popular, we’re committed to supporting and investing in the entrepreneurial ecosystem as one of the platforms for economic development,” Álvarez said.
“Vehicles such as the Popular Impact Fund allow us to participate as partners and actively collaborate in a company’s growth,” he said. “This fund and other tools such as the Mezzanine Fund, StartUp Popular, Echar Pa’ Lante, and the Social Investment Program facilitate our support for entrepreneurs in our markets.”
“Promoting innovation to address the challenges we face in a rapidly changing environment is essential. We depend on this to achieve a robust ecosystem with thriving and sustainable businesses,” said Álvarez.
