Popular Impact Fund is ‘significant force’ in field of social investment
The investments focus on entrepreneurship, technology and community impact in Puerto Rico.
For the second consecutive year, Popular, Puerto Rico’s leading financial institution, is supporting young and innovative companies with significant growth and expansion potential through the Popular Impact Fund. This fund is one of several efforts Popular undertakes to strengthen the business ecosystem and drive economic and social development in Puerto Rico and beyond.
The Popular Impact Fund was established in 2022 to make minority investments in young companies or startups raising capital to grow in Puerto Rico, the U.S. Virgin Islands and the mainland United States. The fund focuses on companies developing strategic technology for the financial services sector and those creating a positive community impact.
To date, the fund has invested $9.3 million in 12 companies and two fintech funds.
Popular CEO Ignacio Álvarez noted the importance of these strategic investments, emphasizing their role in economic growth, technological innovation and social well-being. He stated that such initiatives address current and future challenges while fostering an environment for new ideas to flourish.
“We have been deliberate in ensuring that we are contributing to strengthening the entrepreneurial ecosystem while ensuring that we have the products and services necessary for entrepreneurs to grow and thrive,” said Álvarez.
“We believe in supporting emerging companies with potential, knowing they will have a significant impact on their areas of focus. The commitment to innovation and sustainability will continue to drive every investment decision made by the fund,” Álvarez added.
Since its inception, two-thirds of the Popular Impact Fund’s investments have been in local companies or those led by Puerto Ricans. Among the companies supported last year are Ironhack, a global technology school equipping professionals with skills for an artificial intelligence-driven world; Ecolectro, focused on clean, scalable and low-cost hydrogen; and Cultimar Technologies, which developed a methodology for large-scale red snapper farming.
The fund has also invested in financial technology companies, including Synctera, which enables non-financial companies to launch banking products, and StoreCash, which operates a mobile payment platform allowing users to pay via QR codes and earn cashback at more than 200,000 retail locations.
Recently, the Popular Impact Fund invested in MBQ Pharma, a biopharmaceutical company developing treatments for breast cancer and advanced-stage metastasis. Using molecules discovered at the University of Puerto Rico’s Medical Sciences Campus, MBQ Pharma is the first local company to receive Food and Drug Administration approval and U.S. Department of Defense funding for phase 1 clinical trials.
“This is a major step for us at the company, as it provides credibility in the world of professional investments, enabling us to advance the development of our products for the benefit of global health,” said José F. Rodríguez-Orengo, CEO of MBQ Pharma. “This investment by the Popular Impact Fund will allow us to expand clinical sites to California, Tennessee and Florida, speeding up the recruitment of participants for the phase 1 study.”
Rodríguez-Orengo noted that early clinical results are promising, showing higher-than-expected levels of the MBQ-167 molecule in the blood without side effects.
“We hope to complete the phase 1 clinical trial next year and continue research that demonstrates the impact of our products in the fight against breast cancer metastasis. We know that every hour, seven women in the United States and Puerto Rico lose their lives to this condition. At MBQ Pharma, we are committed to changing this reality on a global scale,” he said.
The Popular Impact Fund also continues supporting its previous investments, including Skootel, Raincoat Insurance Inc., AccurKardia, Parcha and Carbonwave.
