Parallel18 (P18), part of the Puerto Rico Science and Technology Research Foundation’s (PRSTRT) entrepreneurship pillar program, this week announced its 12th batch of international startups looking to expand internationally while contributing to the island’s economic development.
The P18 12th generation of startups includes companies from Puerto Rico, the United States, Argentina, Brazil, Mexico, Chile, Colombia, Norway, Poland, Spain and the United Kingdom.
“parallel18 once again proves the importance of supporting local and international entrepreneurs, as they are one of the main sources of economic development in our country,” said Lucy Crespo, CEO of PRSTRT. “Our Trust is proud to have a strong pillar of entrepreneurs that allows us to provide valuable and relevant resources to each participant in our program. With each passing year, the ecosystem continues to evolve and parallel18 continues to be at the forefront.”
The latest acceleration program will begin in July and companies will receive 20 weeks of mentorship in Puerto Rico, access to business connections and Parallel18’s investor network, as well as a $40,000 grant and $20,000 investment from the Trust, according to a company statement.
Additionally, P18 participants raising private capital can benefit from the parallel18 Ventures initiative and “matching funds,” co-investment funds designed to match capital raised.
The startups accepted into the gen-12 batch are:
“We are very excited to welcome this international generation to our new space, the Forward Centre, within the Trust’s Science City, and we hope that all participants will enjoy and benefit from this new dimension of our organisation. Similarly, the selection process was highly competitive, as we received very good applications, which were evaluated by an international jury. We expect Gen. 12 to be an incredible cohort, with the diversity and innovation that characterise our graduates,” said Dr Héctor Jirau, Executive Director of parallel18.
History of parallel18 startup acceleration
Since 2015, parallel18 has aimed to enrich Puerto Rico’s business ecosystem by providing capital, expert mentorship, business connections, and investment opportunities to underrepresented founders from around the world.
Along with announcing its 12th generation of startups, P18 also launched its annual impact report, which summarises their efforts and contributions to the island’s business ecosystem during the previous year, taking into account the organization’s various programs, including pre-acceleration (pre18), acceleration (P18) and post-acceleration (Xpand).
With 161 Puerto Rican companies having graduated from Pre18, the local pre-acceleration program has become a springboard for Puerto Ricans looking to pursue entrepreneurship full-time. Currently, over 70% of local businesses are still open, generating $4.1 million in revenue.
To date, P18 has supported a total of 279 companies, providing them with the opportunity to expand globally while contributing to the development of the local economy. According to the report, P18 graduates have created more than 800 jobs, and 75% of these companies are still in business.
As local companies progressed to more advanced stages, Xpand was born, a community-driven program that supports the sustainable global growth of Puerto Rican companies. Funded by Banco Popular, this post-acceleration curriculum has graduated 19 companies (second and third generation) with $9.6 million in sales.
According to the impact report, the organization distributed $1,347,500 in grants between January and December 2023 to 23 participating fifth-generation (Pre18) companies and 19 eleventh-generation (P18) startups.
With regard to the private capital raised by the companies, it was detailed that 11th generation companies raised $675,000 during the program period, while 5th generation companies (pre-18th generation) raised $912,000.
Additionally, the Parallel 18 Ventures sub-program, which helps startups develop investment strategies and connects them with a curated network of over 600 investors, has a portfolio of 64 companies that have raised a total of $85,113,800 in funding over the past seven years (cumulative), the report said.
Last year alone, approximately $605,000 in capital was invested in 23 companies, of which $380,000 was invested in P18 Gen. 11 startups, $125,000 was awarded to RedAtlas as “matching funds,” and $100,000 was invested in three Xpand Gen. 3 companies: Konti Design, PRoduce, and Libros 787.
Finally, the report highlights accelerator success stories such as Puerto Rico-based microinsurance company Raincoat, which raised $6.5 million, bringing its total funding to $11 million.
Additionally, Konvex, a Colombian company in the company’s portfolio, secured a $700,000 investment. The company has facilitated over 500,000 accounting reconciliation transactions, impacting over 80 e-commerce stores.
Disclosure: This article mentions clients of Espacio’s portfolio companies.
