Magical

What is Magical?

Magical is a private investment fund and accelerator that has been investing in and accelerating founders since 2013. They are focused on identifying entrepreneurs who are addressing critical issues in Latin America.

Their activities encompass providing investment, expert advisory, and a valuable network of connections to expedite the growth of projects.

Magical’s specific interest lies within a range of industries including FinTech and Financial Services, Energy, Retail and E-Commerce, A.I. and Big Data, HealthTech and Fitness, Blockchain and Cryptocurrencies, Analytics, Human Resources, Logistics and Distribution, Real Estate and Construction, and ventures that are Women Focused.

With an investment minimum of $100,000 and a maximum of $475,000, their investment sweet spot is $125,000, reflecting their focus on Pre-seed and Seed stage startups.

Since their first investment fund of $3.5M, which ran between 2017 and 2021, they’ve seen a portfolio valuation of $323M, investing in 35 startups with a 62% survival rate, resulting in three exits. The follow-up, FondoMagical II, aims to maintain close collaboration, working one-on-one with founders to understand and respond to their specific needs.

The accelerator program provides a diagnostic to visualize the startup's challenges and opportunities, which leads to crafting a six-month action plan. This is enhanced by individual consultations with expert advisors and a broad network of services. It also offers financial support of $125,000, personalized guidance from a Senior Portfolio Manager, a network of companies, one-on-one sessions with experts, and access to the Magical Community.

Startups benefit further from more than $100,000 in service perks.

Their investment thesis centers on Pre-Seed stage startups solving Latin America's critical problems, teams fully dedicated to their startup (especially the founders), and ventures with at least some form of market validation such as pilot programs, tested MVPs, or recurring traction.

The investment mechanism they employ is a convertible note, with a program cost of $25,000.

What they say:

We are a venture capital firm and accelerator, supporting early-stage businesses from our base in Santiago, Chile.

What we look for: We invest in companies addressing critical challenges.