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Tribal announces launch of Tribal Ventures, a fund to boost early-stage startups in the region

April 11, 2022
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Tribal, a B2B payments and financing platform for emerging markets, has launched a venture fund to invest in early-stage fintech companies.
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Tribal Ventures will provide qualifying startups with investments of up to USD 250,000. The firm says it has no geographic limitations but will focus on SMBs in emerging markets and has also highlighted its interest in blockchain and crypto players.

Christine Chang, who will be leading this initiative, says: “The B2B space is the next frontier in terms of what venture-backed startups can solve. We’re excited to invest in the best founders in this space, including crypto companies.

”In recent months, Tribal closed a $60M Series B raise and completed the first-ever $40 million hybrid debt round combining stablecoins and fiat, in addition to launching a mechanism for cross-border payments that leverage stablecoins to make transactions faster and more affordable.

According to CB Insights data, lack of access to capital (38%) is one of the main reasons why startups close operations, followed by market mismatch, business models with scalability problems, regulations, among others. However, the firm PWC affirms that every year there is an accelerated emergence of startups in information technology, financial and business services.

In addition, the radiography of entrepreneurship in Mexico 2020, prepared by the Association of Entrepreneurs of Mexico (ASEM), highlights that 57% of respondents mentioned that the lack of financing alternatives is the main cause affecting entrepreneurship, even investment funds only represented 2% of the sources of funding in the sector.

Therefore, Tribal Ventures intends to continue promoting the growth of startups in emerging markets by not only addressing the problem of financing in these regions, but also by creating a 360 solution that encompasses the advice, contacts and resources necessary for the successful construction of their businesses.

"Today the SME sector is very broad and fragmented. We understand that not all emerging companies or startups are the same, however, with our AI-based approval process, we can assess the growth trajectory and with that determine the best way to help further build the ecosystem of fintech solutions. With our debt financing solutions and eliminating the issues around payments, startups can focus on continuing to grow; that's Tribal Ventures' mission."

Christine Chang, initiative leader of the Tribal Ventures fund.

Tribal Ventures will invest directly from the company's balance sheet, and expects to raise investments in conjunction with its existing investors such as QED Investors, Softbank, Coinbase Ventures and BECO Capital, among others. This initiative is already available to startups focused on fintech products in the countries where Tribal has a presence.

Las opiniones compartidas y expresadas por los analistas son libres e independientes, y de ellas son responsables sus autores. No reflejan ni comprometen el pensamiento u opinión de Latam Fintech Hub, por lo cual no pueden ser interpretadas como recomendaciones emitidas por la platafomra. Esta plataforma es un espacio abierto para promover la diversidad de puntos de vista sobre el ecosistema Fintech.

Tribal Ventures will provide qualifying startups with investments of up to USD 250,000. The firm says it has no geographic limitations but will focus on SMBs in emerging markets and has also highlighted its interest in blockchain and crypto players.

Christine Chang, who will be leading this initiative, says: “The B2B space is the next frontier in terms of what venture-backed startups can solve. We’re excited to invest in the best founders in this space, including crypto companies.

”In recent months, Tribal closed a $60M Series B raise and completed the first-ever $40 million hybrid debt round combining stablecoins and fiat, in addition to launching a mechanism for cross-border payments that leverage stablecoins to make transactions faster and more affordable.

According to CB Insights data, lack of access to capital (38%) is one of the main reasons why startups close operations, followed by market mismatch, business models with scalability problems, regulations, among others. However, the firm PWC affirms that every year there is an accelerated emergence of startups in information technology, financial and business services.

In addition, the radiography of entrepreneurship in Mexico 2020, prepared by the Association of Entrepreneurs of Mexico (ASEM), highlights that 57% of respondents mentioned that the lack of financing alternatives is the main cause affecting entrepreneurship, even investment funds only represented 2% of the sources of funding in the sector.

Therefore, Tribal Ventures intends to continue promoting the growth of startups in emerging markets by not only addressing the problem of financing in these regions, but also by creating a 360 solution that encompasses the advice, contacts and resources necessary for the successful construction of their businesses.

"Today the SME sector is very broad and fragmented. We understand that not all emerging companies or startups are the same, however, with our AI-based approval process, we can assess the growth trajectory and with that determine the best way to help further build the ecosystem of fintech solutions. With our debt financing solutions and eliminating the issues around payments, startups can focus on continuing to grow; that's Tribal Ventures' mission."

Christine Chang, initiative leader of the Tribal Ventures fund.

Tribal Ventures will invest directly from the company's balance sheet, and expects to raise investments in conjunction with its existing investors such as QED Investors, Softbank, Coinbase Ventures and BECO Capital, among others. This initiative is already available to startups focused on fintech products in the countries where Tribal has a presence.

Las opiniones compartidas y expresadas por los analistas son libres e independientes, y solamente sus autores son responsables de ellas. No reflejan ni comprometen el pensamiento o la opinión del equipo de Latam Fintech Hub y, por lo tanto, no pueden interpretarse como recomendaciones emitidas por la plataforma. Esta plataforma es un espacio abierto para promover la diversidad de puntos de vista en el ecosistema Fintech.

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