Emprender Fund in Uruguay

(Caracas, November 2, 2007).- The Andean Development Corporation (CAF), Multilateral Investment Fund (FOMIN), Uruguayan National Development Corporation (CND), Prospéritas Capital Partners (PCP) and a group of private investors signed an agreement in Montevideo to set up the Emprender Fund. This vehicle will provide seed capital investment to support development of innovative businesses with high growth potential in Uruguay. The Fund, to be managed by the PCP company, will have an initial capital of US$1.1 million in reimbursable funds, including US$300,000 from CAF, and will actively seek new private investors as partners.

CAF President and CEO Enrique García said, “To support and strengthen the development capacity of those who prove that they can create and innovate is part of the CAF action plan, which is why we are interesting in participating in this Fund," He added that "the purpose of the project is to promote an entrepreneurial culture in Uruguay, with the objective of adding value and promoting sustained growth in the economy of the country, a partner of the Corporation." The idea is to systematically increase the number and quality of new or young businesses and small enterprises in dynamic sectors.

The creation of Emprender has the triple objective of promoting the entrepreneurial spirit; stimulating undertakings with high growth expectations, along with the entities that support them; and generating successful cases which, by demonstration effect, increase demand and supply of seed capital in the Uruguayan market. The Fund is also destined to be the seedbed for formation of a network of investment angels.

According to reports, the direct beneficiaries will be enterprising Uruguayan entrepreneurs, present and future, who are interested in making their technology-based enterprises grow, and have difficulties financing their projects; individual private investors who will be able to invest through their own specialized innovative investment vehicle; the creating institutions and local trainers, which become ideal sources for generating potential businesses; the financial sector, which will see the Fund as a new financing methodology; and the executing agencies and collaborating bodies which now have an effective mechanism for performing their function of supporting the sector.