Panama, with its stable political and economic environment, offers a promising landscape for startups. Ranked 3rd in Central America and 86th globally, the Panamanian startup ecosystem is supported by academic institutions, technology businesses, and NGOs. In this article, we have compiled a comprehensive list of top Venture Capitalist Funds (VCs) in Panama that can provide you with the capital and support to help you succeed in this beautiful country!
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Topics Covered:
Why Should You Raise Funds in Panama
Venture Capitalist Funds in Panama
Closing Thoughts on Venture Capitalist Funds in Panama
Why Should You Raise Funds in Panama?
A major reason why startups should consider raising funds in Panama is the favorable business environment due to the government's business-friendly regulation. This includes Panama's Special Economic Zones (SEZ) designated areas within the country that offer benefits to attract foreign investment and promote innovation. These zones offer a range of incentives, such as tax breaks, streamlined regulations, and access to infrastructure, which can significantly benefit startups looking for funding and a supportive ecosystem to thrive. Companies operating within these zones are exempt from paying corporate income tax, dividend tax, and capital gains tax; and they are exempt from import duties on goods and equipment used for their operations.
In addition to the SEZs, Panama also offers a favorable tax system that further encourages foreign investment. The country has a territorial tax system, which means that taxes are only levied on income generated within Panama's borders. Foreign-sourced income is not subject to taxation. Additionally, Panama has the ability to negotiate tax agreements with other countries, further reducing the tax burden for startups operating internationally.
The combination of SEZs with their incentives and Panama's favorable tax system creates a highly attractive business environment for foreign investors. The incentives and benefits offered by SEZs, coupled with the tax advantages, provide a strong incentive for businesses to establish operations in Panama. This has contributed to the country's reputation as a hub for international trade and investment, attracting companies from various industries seeking to expand their presence in the region and beyond.
Venture Capitalist Funds in Panama
The venture capital firms below are actively looking for investments in promising companies throughout various stages and sectors. The stages stated do not limit the possibility of getting funding if your company is at any stage other than what is listed.
Year of Inception: 2019
Stage: Pre Seed, Seed
Focus: Remote Work, Global Work, No Code
Notable Portfolio: Mainstreet, Microacquire, Hopin, Remote
Remote First Capital is a venture capital investment firm that specializes in investing in startups that aim to improve remote work and leverage global work in unique ways. They invest in companies that enhance remote work, utilize global work opportunities, and develop engineering and no-code tools. Remote First Capital is known for its community-driven approach, with a small fund composed of remote founders, operators, and early-stage investors. Their investment range typically falls between $100,000 and $200,000 for pre-seed and seed stages.
Year of Inception: 2021
Stage: Seed, Series A
Focus: Impact
Notable Portfolio: Betterfly, Kilimo, Carryt, Airbag
Impacta VC is an investment fund that actively supports impact-driven founders in Latin America. The fund was founded with the belief that doing business with a purpose is one of the most effective ways to help the planet. Impacta VC seeks to provide resources and support to startups that have a positive impact on society and the environment. Through their investments, they aim to contribute to the development of a more sustainable and inclusive future.
Year of Inception: 2019
Stage: Seed, Series A
Focus: Sector Agnostic
Notable Portfolio: Bricksave, Amiloz, Siembro, Digital Twin, Woof
Cacao Capital VC is a family-owned venture capital firmbased in Central America. With a focus on supporting small and medium-sized startups in emerging markets, Cacao Capital VC partners with entrepreneurs driving conscious projects. The firm provides hands-on support and helps startups develop their business strategy.
Year of Inception: 2022
Stage: Seed, Series A
Focus: Sector Agnostic
Notable Portfolio: Around, Latitud, Papaya Tour
Ganas Ventures is a venture capital fund that focuses on investing in community-driven startups in the US and Latin America. They believe that companies with a strong community focus have a higher chance of success. Led by an experienced team, Ganas Ventures provides $100K investments and valuable support to startups in areas such as sales, community building, and fundraising strategies.
Year of Inception: 2012
Stage: Seed, Series A
Focus: Sector Agnostic
Notable Portfolio: Megabite, Tesorio, Strike, Naya Homes
Founded in 2012 in Costa Rica, Carao Ventures is a leading firm in Central America, investing in a wide range of industries such as software, biotech, healthtech, and fintech. They support entrepreneurs who possess the technical skills and determination to disrupt industries and contribute to the growth of the Latin American startup ecosystem. Carao Ventures has a unique investment approach that combines best practices from venture capital firms, venture-building, and startup accelerator programs.
Year of Inception: 2014
Stage: Seed, Series A
Focus: FinTech
Notable Portfolio: Bonify, Byrd, Creditas, Klar, Paykey
Mouro Capital is a venture capital firm that specializes in investing in entrepreneurs and start-ups in the financial services industry. With $400 million in assets under management, Mouro focuses on early to growth stage investment opportunities in Europe, North America, and Latin America. With its extensive experience and financial resources, Mouro Capital is dedicated to supporting innovative founders who are shaping the future of financial service.
Year of Inception: 2008
Stage: Seed, Series A, Series B, Series C
Focus: SaaS, Technology
Notable Portfolio: Clicksign, Worc, Jusfy, Espresso
Saasholic is a venture capital firm that is dedicated to investing in and supporting software-as-a-service (SaaS) startups. With a deep understanding of the SaaS industry and a passion for empowering innovative entrepreneurs, Saasholic aims to identify and nurture the most promising companies in this rapidly evolving sector. They believe in the power of SaaS to revolutionize various industries and are committed to supporting startups that are pushing the boundaries of what is possible with cloud-based software.
Closing Thoughts on Venture Capitalist Funds in Panama
The startup ecosystem in Panama presents exciting potential for entrepreneurs, investors, and creative professionals. While there are challenges to overcome, such as the lack of infrastructure and funding opportunities, the ecosystem benefits from government support and the presence of key players. With continued efforts to address challenges and foster growth, Panama's startup ecosystem has the potential to become even more startup-friendly in the future.
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