#United States #Miami #Kiara Capital #B2B Fintech

Kiara Capital Launches Fintech-Focused Fund

Miami’s Kiara Capital, founded by fintech veterans, has officially announced the first close of its inaugural fund, aimed at early-stage B2B fintech startups across Latin America and the U.S. With ambitious plans to raise $40 million, this marks a significant step for the venture capital firm as it seeks to enhance investment in a rapidly evolving sector.

Founded in 2023, Kiara Capital operates with a focus on investments ranging from pre-seed to seed levels, with a keen eye on companies that exhibit strong potential for growth within the fintech landscape. Since its establishment, the firm has diligently evaluated over 160 investment opportunities, successfully backing five startups, including notable players like Astride—a U.S.-based provider of accounting solutions for foreign investors—and Payana, a pioneering platform that leverages artificial intelligence to streamline financial operations for small to mid-sized businesses in Mexico and Colombia. The fund's current portfolio covers startups in multiple countries, including Brazil, Mexico, Colombia, and the U.S., with around $2 million already committed to these ventures.

The leadership team of Kiara Capital is robust, co-founded by industry experts Michael Esrubilsky and Daniel Arippol. Michael brings over 25 years of fintech experience, having achieved four successful exits in Brazil that total near $1 billion. His track record is impressive, highlighted by a 9.8x multiple on invested capital and a 45%+ internal rate of return in U.S. dollars. Daniel, on the other hand, adds finesse with more than 15 years of experience in private equity and venture capital, particularly across emerging markets and has advised high-growth technology firms in both Latin America and the U.S..

After testing its investment thesis with partner capital only, Kiara Capital now seeks external funds to further its ambitions. The firm aims to secure $30 million, with an end goal of $40 million. The investor mix is impressive, comprising founders, bank CEOs, venture capital partners, and family offices all sharing a vested interest in fintech and financial innovation. The founding partners are committed to maintaining significant investment in the fund—ensuring a vested interest remains intact with limited partners (LPs).

“Opening the fund to outside investors is a natural progression that expands our investment capacity while keeping us aligned,” Esrubilsky stated, emphasizing the intention to involve experienced partners in co-investing. Kiara Capital aims to construct a robust portfolio comprising 15 to 20 startups, initiating investments at $500,000, while retaining substantial reserves for follow-on rounds. The fund is structured strategically in the United States, allowing for global flexibility while particularly focusing on the Latin American and U.S. cross-border markets.

Given the current trends in early-stage investing, the timing appears favorable for Kiara Capital. The firm identifies attractive valuations and a shift towards quality among top founders as positive indicators. Kiara’s competitive advantage lies in its model of active support, offering hands-on strategic and technical assistance rooted in the partners’ rich histories as successful operators and investors.

“We prioritize founders who possess deep industry expertise and exhibit exceptional execution capabilities, often emerging through trusted network referrals,” stated Arippol. “We specifically look for companies that not only demonstrate a robust product-market fit but also possess the potential to make a significant impact within the financial sector.”

In conclusion, Kiara Capital's proactive approach and commitment to fostering innovative fintech solutions is setting a compelling stage for future growth. With a balanced mixture of experience and strategic investments, the firm is poised to be a key player in the evolving landscape of financial technology.