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Seedstars launches new investment platform to develop VC managers

Seedstars has announced the launch of Seedstars Capital, an investment platform for emerging venture capital (VC) fund managers with the support of xMultiplied, a Swiss-based investment holding company.
Seedstars Group Partners from left to right: Michael Weber, Alisée de Tonnac, Pierre-Alain Masson, and Charlie Graham-Brown | image supplied
Seedstars Group Partners from left to right: Michael Weber, Alisée de Tonnac, Pierre-Alain Masson, and Charlie Graham-Brown | image supplied

Seedstars explained the following in a statement: "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. At the same time, it becomes the catalyst for investments into these early-stage firms by providing investors a diversified allocation solution to the asset class within emerging markets."

With the platform, Seedstars expects to drive over $500m of new funding into emerging and diverse managers, who will create more than 10,000 new jobs and generate over $20bn of additional GDP across emerging markets in the next 10 years.

Despite the exponential growth of the VC industry across emerging markets in recent years, most early-stage VC funds raised are small in size (i.e. below $50m AUM) and raised by an increasing number of new and diverse teams with limited track record and resources, which reduces the amount of capital limited partners can deploy to these skillful and highly talented managers.

Benjamin Langer, partner of Seedstars Capital comments:

“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. For limited partners, the growing number of new managers makes it difficult to identify the best-performing and most impactful strategies. By pooling their assets and bringing them under our community, we can 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.”

Moreover, Seedstars is currently working towards launching funds focused on edTtech, supply chain, climatetech and other impact sectors with outstanding rising managers in emerging markets to be announced soon.

Seedstars is set to collaborate with a number of additional sector-specific technology funds, active from Pre-Seed to Series A, in emerging and frontier market


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