500 Startups is increasing its commitment to global investing with a new Latin America fund, targeting $10 million, going by the name of Luchadores II, the Spanish word for wrestlers. The fund is 500’s second aimed at the region and one of a growing number of its seed investment vehicles targeted at underserved markets across Europe, Asia and The Americas.
The accelerator has been investing in Latin America in one form or another since 2010. Santiago Zavala, managing partner of the new fund, is targeting approximately 120 companies for investment with the fresh powder in hopes of pushing the number of Latin American unicorns into the double digits.
Dave McClure, founding partner of 500 Startups, has long been bullish on the arbitrage opportunities made available through international investing. Deals in the United States, particularly in Silicon Valley, are often priced at a premium because of their competitiveness.
“We’re seeing ten to one leverage on additional capital Invested,” said McClure of some international bets. 500’s investments in Latin America have gone on to raise over…