CNMV approved Zubi Capital Impact Venture Finance, the first Impact Venture Debt fund dedicated to socially responsible companies. The initiative is headquartered in Spain and is powered by Zubi Labs, an Impact Venture builder led by Iker Marcaide (founder of Flywire). Zubi Labs has been creating companies that tackle some of the greatest social and environmental challenges. Zubi Capital represents the investment arm of Zubi Labs.
Zubi Capital Impact Venture Finance was born during the current health crisis, and is the first vehicle in this category. Its aim is to provide debt financing to socially responsible companies that do not have access to traditional financing schemes. The objective of the fund is to finance sustainable businesses with liquidity problems avoiding the destruction of employment of certain vulnerable groups, mobilizing capital from co-investors and promoting impact investment to achieve collaboration.
Iker Marcaide, Founder & CEO of Zubi Labs points out “Zubi Capital was born within Zubi Labs to mobilize the capital of co-investors and invest in companies that help us build a better future by solving the challenges we face today, such as climate change, creating a circular economy or reducing poverty and inequalities.
This impact venture debt fund aims to be our first impact investment strategy, it has a rigorous measurement and management of the impact and an objective of financial market profitability adjusted to risk”
The target sice of the fund is €40m and its first closing is expected in the upcoming months, Zubi Capital has the support of a significant number of entrepreneurs and relevant investors such as Iñaki Berenguer (CoverWallet), Sergio Furió (Creditas), Francisco Martin (BigML), Margarita Albors (SocialNest Foundation), Pablo Fernandez (Clicars).
The debut of the investment activity of the Zubi Labs Group complements its Impact Venture Builder activity that has led to projects such as Imagine Montessori School, Barrio La Pinada CoCircular or Mosaik Urban Systems have emerged.
Zubi Labs Group extends its footprint of social impact not only to its own projects but also to third parties projects acting as an anchor investor to the fund. .
Lucas de la Vega, director of Zubi Capital explains “There is a lack of credit alternatives in tech companies that do not have access to bank financing due to a volatile credit profile linked to their exponential growth. Venture debt allows us great flexibility when it comes to invest in profitable and sustainable business models”
Zubi Capital’s Venture Debt is a tailored term loan facility of up to €2.5m, the loan includes a small remuneration in shares. The Venture Debt fund expects double-digit returns somewhere in between a traditional Venture capital fund and Credit funds. Zubi Capital alternative balances risk, return and impact, with reduced volatility.