Frequently Asked Questions

What is Newtopia VC?

Newtopia is a Latin American venture capital firm investing in pre-seed and seed startups. We invest $100K-$1M for first checks, sometimes participate in Series A rounds, and can follow-on in our top-performing companies with investments up to $3M.

What does Newtopia invest?

We invest $100K to $1M for first checks at the pre-seed and seed stages, and sometimes participate in Series A rounds. For our best-performing portfolio companies, we can follow-on with investments up to $3M in their Seed and Series A rounds.

What stages and sectors do you invest in?

We invest in pre-seed and seed startups, and sometimes in Series A companies. We are sector-agnostic and invest across many different verticals.

Where do you invest?

All of Latin America, and Latin founders solving global or US problems.

What kind of startups Newtopia is looking for?

Early stage startups, tech based, highly innovative, aiming to regional and/or global markets, and lead by amazing entrepreneurs.

What do you look for in founders?

Exceptional founders with deep knowledge of the problem they’re solving, speed of execution, and the ambition to build regional or global companies. We value complementary teams, resilience, and the ability to attract talent and capital.

Who are Newtopia's LPs?

Our 100+ LPs are mostly successful founders, operators and investors from Latin America’s tech ecosystem, including founders of Mercado Libre, Auth0, MURAL and other LATAM unicorns. Many of them actively support our portfolio companies.

What is the SEED STAGE?

We invest in both pre-seed and seed rounds, and sometimes participate in Series A rounds. In addition, we follow-on in our top-performing portfolio companies, typically in their Seed and Series A rounds, with investments up to $3M.

Can Newtopia be a lead, co-lead, or follower investor?

We’re flexible: we typically lead or co-lead pre-seed rounds. In Seed and Series A, we can lead, co-lead, follow (depending on the lead), or even angel-check exceptional pre-seed rounds.

Do you invest in companies that already raised from other VCs?

Yes. We often invest as the first VC in a company, but we also co-invest alongside other funds and invest in later rounds.

How many investments do you make per year?

We make 8-12 investments per year.

Do you do follow-on investments?

Yes. We actively follow-on in our top-performing portfolio companies, typically in their Seed and Series A rounds, with investments up to $3M.

What makes Newtopia different from other VC funds?

Beyond checks, we’re your fundraising partner. We help with round strategy, valuation, data room setup, and pitch coaching. Our 100+ investor community gives you access to warm intros with top VCs across LATAM, the US, and globally. We’re flexible on structure: we can lead, co-lead, follow, or even angel exceptional pre-seeds.

What kind of fundraising help do you provide?

We help with round strategy, valuation rationals, data room preparation, pitch coaching, and introductions to VCs. We also guide companies through Series A readiness.

How do I pitch Newtopia?

Apply through the form on our website. We always reply with useful feedback, whether the answer is yes or no.

What instruments do you use?

We usually invest through a post-money SAFE, but we are open to other instruments and have invested through them as well.

What is a SAFE?

Y Combinator introduced the safe (simple agreement for future equity) in late 2013, and since then, it has been used by almost all YC startups and countless non-YC startups as the main instrument for early-stage fundraising.
The first YC Safe was a “pre-money” safe, because at the time of its introduction, startups were raising smaller amounts of money in advance of raising a priced round of financing (typically, a Series A Preferred Stock round). The safe was a simple and fast way to get that first money into the company, and the concept was that holders of safes were merely early investors in that future priced round.
But early stage fundraising evolved in the years following the introduction of the original safe, and now startups are raising much larger amounts of money as a first “seed” round of financing. While safes are being used for these seed rounds, these rounds are really better considered as wholly separate financings, rather than “bridges” into later priced rounds.
In 2018 YCombinator released the “post-money” safe. By “post-money,” we mean that safe holder ownership is measured after (post) all the safe money is accounted for – which is its own round now – but still before (pre) the new money in the priced round that converts and dilutes the safes (usually the Series A, but sometimes Series Seed).
The post-money safe has what we think is a huge advantage for both founders and investors – the ability to calculate immediately and precisely how much ownership of the company has been sold. It’s critically important for founders to understand how much dilution is caused by each safe they sell, just as it is fair for investors to know how much ownership of the company they have purchased.

Is it free to apply to Newtopia?

100% free.
If somebody is trying to charge you, please let us know immediately.

What happens if my startup was not selected?

Don’t give up. Don’t take it personally. Our «NO» might be our mistake, not yours.
Although it is always a good starting point to think about what you could’ve been done better either in your application and/or in the business side of your startup.

Frequently Asked Questions

What is Newtopia VC?

Newtopia is a Latin American venture capital firm investing in pre-seed and seed startups. We invest $100K-$1M for first checks, sometimes participate in Series A rounds, and can follow-on in our top-performing companies with investments up to $3M.

What does Newtopia invest?

We invest $100K to $1M for first checks at the pre-seed and seed stages, and sometimes participate in Series A rounds. For our best-performing portfolio companies, we can follow-on with investments up to $3M in their Seed and Series A rounds.

What stages and sectors do you invest in?

We invest in pre-seed and seed startups, and sometimes in Series A companies. We are sector-agnostic and invest across many different verticals.

Where do you invest?

All of Latin America, and Latin founders solving global or US problems.

What kind of startups Newtopia is looking for?

Early stage startups, tech based, highly innovative, aiming to regional and/or global markets, and lead by amazing entrepreneurs.

What do you look for in founders?

Exceptional founders with deep knowledge of the problem they’re solving, speed of execution, and the ambition to build regional or global companies. We value complementary teams, resilience, and the ability to attract talent and capital.

Who are Newtopia's LPs?

Our 100+ LPs are mostly successful founders, operators and investors from Latin America’s tech ecosystem, including founders of Mercado Libre, Auth0, MURAL and other LATAM unicorns. Many of them actively support our portfolio companies.

What is the SEED STAGE?

We invest in both pre-seed and seed rounds, and sometimes participate in Series A rounds. In addition, we follow-on in our top-performing portfolio companies, typically in their Seed and Series A rounds, with investments up to $3M.

Can Newtopia be a lead, co-lead, or follower investor?

We’re flexible: we typically lead or co-lead pre-seed rounds. In Seed and Series A, we can lead, co-lead, follow (depending on the lead), or even angel-check exceptional pre-seed rounds.

Do you invest in companies that already raised from other VCs?

Yes. We often invest as the first VC in a company, but we also co-invest alongside other funds and invest in later rounds.

How many investments do you make per year?

We make 8-12 investments per year.

Do you do follow-on investments?

Yes. We actively follow-on in our top-performing portfolio companies, typically in their Seed and Series A rounds, with investments up to $3M.

What makes Newtopia different from other VC funds?

Beyond checks, we’re your fundraising partner. We help with round strategy, valuation, data room setup, and pitch coaching. Our 100+ investor community gives you access to warm intros with top VCs across LATAM, the US, and globally. We’re flexible on structure: we can lead, co-lead, follow, or even angel exceptional pre-seeds.

What kind of fundraising help do you provide?

We help with round strategy, valuation rationals, data room preparation, pitch coaching, and introductions to VCs. We also guide companies through Series A readiness.

How do I pitch Newtopia?

Apply through the form on our website. We always reply with useful feedback, whether the answer is yes or no.

What instruments do you use?

We usually invest through a post-money SAFE, but we are open to other instruments and have invested through them as well.

What is a SAFE?

Y Combinator introduced the safe (simple agreement for future equity) in late 2013, and since then, it has been used by almost all YC startups and countless non-YC startups as the main instrument for early-stage fundraising.
The first YC Safe was a “pre-money” safe, because at the time of its introduction, startups were raising smaller amounts of money in advance of raising a priced round of financing (typically, a Series A Preferred Stock round). The safe was a simple and fast way to get that first money into the company, and the concept was that holders of safes were merely early investors in that future priced round.
But early stage fundraising evolved in the years following the introduction of the original safe, and now startups are raising much larger amounts of money as a first “seed” round of financing. While safes are being used for these seed rounds, these rounds are really better considered as wholly separate financings, rather than “bridges” into later priced rounds.
In 2018 YCombinator released the “post-money” safe. By “post-money,” we mean that safe holder ownership is measured after (post) all the safe money is accounted for – which is its own round now – but still before (pre) the new money in the priced round that converts and dilutes the safes (usually the Series A, but sometimes Series Seed).
The post-money safe has what we think is a huge advantage for both founders and investors – the ability to calculate immediately and precisely how much ownership of the company has been sold. It’s critically important for founders to understand how much dilution is caused by each safe they sell, just as it is fair for investors to know how much ownership of the company they have purchased.

Is it free to apply to Newtopia?

100% free.
If somebody is trying to charge you, please let us know immediately.

What happens if my startup was not selected?

Don’t give up. Don’t take it personally. Our «NO» might be our mistake, not yours.
Although it is always a good starting point to think about what you could’ve been done better either in your application and/or in the business side of your startup.

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