Part of its own profits • TechCrunch

Atman Capital, an early-stage venture firm backed in part by about 20 founders, is settling the deal for these individual limited partners.

He promises to give credit to any one of them who transmits a successful deal to the project company in the form of a carry-over interest in the company’s own profits.

It’s an interesting development for the company, founded last year by Brazilian-born Pedro Sorrentino and Pedro Dias that invests in startups in the United States and Latin America. In a tight capital market in which Atman closed on $9 million for a fund targeting $30 million, the extra lure — above 80% of the profits LPs typically get from successful results — is also smart.

“We spoke with over 100 founders, and asked them what they wanted and what was important to them. The most common answer was the desire to leverage their personal network, as all of these founders — partly by secondary — are very active angels,” Sorrentino told TechCrunch. . “That’s when we came up with a model of paying them interest in the fund while doing deals together as a community.”

Dias spent seven years at JPMorgan and another two years at Reskived before teaming up with Sorrentino to found Atman. In February 2021, Sorrentino left OneVC – another cross-border company he founded – to focus on building Atman Capital.

To date, the new company owns six portfolio companies – bifiAnd the Streetbeat And the chapel in the United States and bamboowhich is a surreptitious FinTech startup and LoopiPay in Latin America.

“Investing in both geographies makes us better investors, and it makes us a more interesting value proposition as a company because we have a presence in both regions,” Sorrentino said.

The fund plans to invest in the pre-incorporation and incorporation stages with checks ranging on average from $750,000 to $1.5 million. It looks to B2B, software, commerce, consumers and fintech startups. LPs are a mix of ultra-high net worth individuals, family offices and foundations as well as founders.

To date, Atman also has more than 20 founder LPs that make up an “Egregore,” which means a group of individuals who share values ​​and principles with the skin of the game. Currently, 70% are from Latin America and 30% are from the United States. Alexandre Liuzzi, co-founder & CSO of Remessa Online, which was acquired by EBANX; Adhemar Milani Neto – Founder and CEO at KOVI, and Doug Storf – Founder and CEO at Swap, among others.

The pair say the advantage of becoming Atman’s LP rather than an ongoing angel investment is that these founders have a “safe” place to bounce ideas off their peers.

“There’s a limit to the honesty we can put on the table with your board, or even with your executive team, so we’ll just try to make sure we’re one of the most comfortable places for real intellectual discussion while we’re making money together as well,” Sorrentino said. “It’s a community-supported fund.”

The couple says it’s also a matter of comfort.

“A lot of founders are still running companies and don’t want to become venture capitalists,” Dias noted. “There are a lot of K1s, their tax situation becomes chaotic. This way, we are dealing with operational efficiency.”

The company’s investment thesis, according to Sorrentino, is to target companies run by second or third time founders who seek to reduce cash burn through a plan to achieve profitability.

The couple say Atman wants to support pre- and seed-stage startups that “operate as if they were Class A”.

“They should not be afraid to have difficult conversations and be interested in investor updates while managing money in a more conscious way,” Sorrentino told TechCrunch. “Believe [fundraising] The environment will become more challenging over the next one to three years. We don’t think we’ve seen all the pain that is about to come.”

Despite the slowdown in projects, venture capital firms in Latin America continue to raise funds. Brazilian Impact Investor positive projects It is also targeting a $30 million fund, from which it has raised $20 million so far. Its latest fund, Positive Ventures DIF II, is designed to invest in early-stage technology companies “that are challenging the enormous global challenges of the Global South,” according to co-founder and co-CEO Fabio Kestenbaum.

In August, Positive Ventures announced the first investment to be made through the new fund. She co-led the pre-establishment tour along with the cooperative fund Ruf, a Chilean market that connects homeowners, solar panel installers and lenders. They were followed by Juan Gubet, a former Chilean energy minister, who also joined the board of directors, and the Harvard Innovation Lab on this investment.

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