Member Spotlight: parallel18

For this deep dive, we spoke to Bianca Corujo, Ventures Manager at parallel18.

Tell us about your firm. What makes it different?

Parallel18 is a top-level performance-driven international startup program with a social mission: offer entrepreneurs from all over the world access to high-quality business training, funding, and networks to help them scale globally while working to position Puerto Rico as a unique hub for innovative businesses and technology.

The program is part of the Puerto Rico Science, Technology, and Research Trust, a private non-profit organization created with the goal of maximizing Puerto Rico’s participation and creation of jobs in the global knowledge economy by promoting investment and financing of science and technology research development. The organization manages and hosts over a dozen initiatives that range from grants and technical support to meetups and educational resources for researchers, entrepreneurs, farmers, investors, and other groups.

We are changing the narrative of Puerto Rico’s economy by promoting a diverse business community. We believe in creating opportunities for entrepreneurs of underrepresented groups in the innovation ecosystem and support their dreams of building a high-impact business that can reach the world.
We nurture globally-minded startups with strong roots in their local communities and encourage the development of solutions to problems with a global outlook, providing access to exceptional resources tailored to streamline the way to their utmost potential.

We leverage Puerto Rico’s advantages as a multinational business hub that offers the structures and protections of U.S. legal frameworks with cultural connections to Latin America and the Caribbean and a bilingual highly-trained workforce.

We provide:

• Training and mentorship
• A guide and methodology to track growth and structure the company for scalability
• Equity-free funding in two of our programs
• Connections with potential customers in top companies
• Investment opportunities
• Additional support through the Puerto Rico Science, Technology and Research Trust in areas such as intellectual property: technical assistance to access funding for research, development, and commercialization: matchmaking with top research talent and organizations, among other expert resources.

Parallel18, currently has 4 main programs:

• Pre18 – Pre-acceleration program for Puerto Rican startups who are close to launching their innovative businesses or have recently launched.
• P18 – International acceleration program open to founders from all over the world. Targets startups already in the market, with traction and ready to scale to new markets.
• Xpand – Post-acceleration program designed to support innovative companies that are in a growth-stage. This program is funded entirely by Banco Popular.
• Bioleap – Incubator Program specialized in Life Sciences Startups. Focuses on closing the gap between cutting-edge local scientific research and its commercialization. This program is funded by the U.S. Economic Development Administration (EDA).

What defines your portfolio? 

Parallel18’s portfolio is defined by its diverse range of innovative startups that span various industries, including technology, health, and sustainability. Each company is carefully selected based on its potential for growth and impact, ensuring alignment with our mission to drive economic development in Puerto Rico. We prioritize startups that demonstrate strong leadership, scalable business models, and a commitment to social responsibility. Our portfolio companies benefit from tailored support, mentorship, and access to resources that empower them to thrive in the global market.

Tell us about the current VC landscape in your geography/region. 

The Venture Capital (VC) landscape in Puerto Rico is evolving rapidly, driven by a growing entrepreneurial ecosystem, government support, and increasing interest from both local and international investors. Here’s an overview of the current VC environment in the region:

•  Government Support and Tax Incentives: The Puerto Rican government’s implementation of tax incentives, such as Act 20 and Act 22 (now Act 60), significantly attracts entrepreneurs and investors by providing exemptions on capital gains, income, and dividends, making the region a tax-efficient location for startups and VCs.
• Growing Entrepreneurial Ecosystem: Programs like parallel18 have been instrumental in nurturing local startups and attracting international talent, fostering a vibrant entrepreneurial ecosystem focused on key sectors like technology, fintech, healthtech, and sustainability.
• Strategic Location: Puerto Rico’s unique position as a U.S. territory with access to Latin America creates a strategic bridge for startups aiming to expand across both regions, enhancing market opportunities for investors.
• Increasing Interest from International VC Firms: There is a growing interest from mainland U.S. and international venture capital firms looking to tap into Puerto Rico’s talent pool and favorable business environment, indicating a shift towards greater investment in the region’s startup landscape.

Overall. Puerto Rico’s VC ecosystem is on the rise, with plenty of potential for growth, particularly in technology, healthcare, and sustainability sectors. The supportive infrastructure, coupled with global investor interest, is positioning Puerto Rico as an emerging hub for innovation and entrepreneurship.

What are the benefits of being an NVCA member?

Being an NVCA (National Venture Capital Association) member offers a range of valuable benefits designed to support venture capital firms, startups, and investors. Members gain access to exclusive resources, including research reports, policy updates, and industry insights that help inform investment strategies. The association provides extensive networking opportunities through events, conferences, and forums, allowing members to connect with industry leaders, potential partners, and emerging startups. Additionally, NVCA offers educational programs and workshops focused on best practices, regulatory changes, and market trends, empowering members to stay informed and competitive in the rapidly evolving venture capital landscape. Overall, membership enhances credibility and visibility while fostering collaboration and growth within the venture capital ecosystem.

What’s ahead for your firm?

Looking ahead, parallel18 is excited to continue expanding its impact in the entrepreneurial ecosystem in Puerto Rico and beyond. We’re dedicated to attracting more international startups, strengthening our support services, and fostering collaborations that enhance our innovative environment. A highlight of our upcoming initiatives is the one-of-a-Kind event on November 19th, 2024, “The 18th Dimension”, which will feature our P18 Gen. 12 Demo Day and Alumni Venture Summit.

This unique event will showcase emerging solutions from our current startups and alumni in front of an audience comprising investors, mentors, business partners, and members of the entrepreneurial community. It will be a 2-track all day event with educational content and conferences for startups and investors. Attendees will have the opportunity to engage with presenters and network personally, creating valuable connections that can lead to future collaborations and investment opportunities. This event not only highlights the innovative spirit of our portfolio companies but also reinforces parallel18’s commitment to supporting entrepreneurship in Puerto Rico.