Despite a surge in digital financial and health services in Latin America, many individuals and businesses lack access to insurance coverage.
“We look for companies solving real protection gaps in Latin America with products that are already showing evidence of demand,” Rafaela Andrade and Moises Sánchez of Madrid-based Mundi Ventures told ImpactAlpha.
The venture capital firm raised $100 million in a first close of its first Latin America fund, which invests in tech companies expanding access to financial and health protection. The firm is targeting startups building proprietary infrastructure, data-driven underwriting and intelligent risk models to underpin new insurance products and models.
“In a digital economy, resilience is built not only through insurance products, but also through the infrastructure, data, legal and cybersecurity layers that help people and businesses anticipate, absorb and recover from risk,” say Andrade and Sánchez.
Strategic partners
The fund raised capital from IDB Invest, COFIDES and regional insurance and financial institutions that “can strengthen and expand their core businesses – enhancing products, accelerating digital transformation and unlocking embedded distribution channels,” according to Mundi’s team.
In the past decade, Mundi Ventures has grown to €1.5 billion ($1.7 billion) in assets under management and backed more than 70 tech firms worldwide. Its Latin America-based portfolio companies include Chile-based Betterfly, which partners with companies to provide employees with voluntary insurance. Puerto Rico-based Raincoat provides immediate payouts for hurricanes and other climate-related events. Sami in Brazil offers affordable health insurance to small businesses and individuals.
“Our LPs help us refine our thesis and diligence,” Andrade and Sánchez said, “while our founders gain access to decision-makers, industry expertise and business development opportunities that many traditional VC firms simply cannot offer.”
