MEXICO – Nestlé is investing in Angel Ventures, a Latin American venture capital firm that seeks to raise US$100 million by the end of second quarter 2020, to support startups across Mexico, Colombia, Peru and Chile.
Nestlé said that the capital will fund startups in the food, beverage, pet food or food tech space as well as business models. The fund will be distributed between 20 to 25 startups in the Pacific Alliance countries.
The Swiss food and beverage company said the agreement was unique in the region and would bring together Nestlé’s technology and Angel Ventures’ strategic capabilities.
The investment fund noted that this alliance allows the resources that the company allocates to the fund more likely to contribute to the development of the ventures in these countries when decisions on resources are analyzed together.
Fausto Costa, executive president at Nestlé, said that the alliance with the financial institution will allow the company to gain ground in innovation and development in business models and new technologies.
Laurent Freixe, Nestlé’s CEO for the Americas added “We are sure that this strategic alliance will lead to the strengthening of the entrepreneurial ecosystem.
“It will also promote job creation, increase the level of competitiveness in young entrepreneurs and approach innovative proposals that allow us to continue revolutionizing the food and beverage industry,” he added.
Nestle’s investment will be used to create a Food Tech Committee whose mission is to find emerging companies with innovative technologies or business models and invest in them, providing support in decision-making and accelerating their growth.
Nestlé will also have a shareholding in companies that receive resources from this investment fund, with the aim that these ventures, in the future, are job catalysts and are integrated into the formal sector of the countries in which they are located.
“Through this partnership, we will be able to support the development and growth of these innovative companies. We want to generate impact and economic and social development,” said Costa.
Angel Ventures’ portfolio includes several food industry start-ups, such as Cervecería Cinco de Mayo, a craft brewery located in Puebla and Pinchef, an e-commerce company that delivers fresh ingredients.