I’m excited to announce that Portal Finance is the winner of our FinTech competition and is now part of the Magma Partners portfolio. Portal Finance stood out from of the multitude of companies that applied from all over Latin America because of founders Diego Caicedo, Felipe Puntarelli and Nicholas Bohorquez’s deep experience in the market and the ability to translate it into a top notch product with clients in multiple countries that can expand worldwide.
Hundreds of thousands of companies acquire short term loans using accounts payable invoices as collateral each year. This industry is called factoring and moves $3T per year world wide. Portal Finance’s proprietary technology allows small and medium sized businesses that need mission critical capital to find the most business friendly terms from factoring companies. Portal Finance evaluates electronic invoices from companies and provides information to investors, which allows investors to make financing offers more quickly and more transparently.
Chile has an extremely well developed factoring industry, but it’s just getting started in the rest of Latin America. Portal Finance is a bet that factoring will not only continue to grow in Latin America, but also will mature and need new technology in the United States and other more developed markets.
Portal Finance, based in Bogota, Colombia, with an office in Santiago, Chile, is our second investment in Colombia and our 5th investment in FinTech.