FEATURE: EL SALVADOR
For founders, tokenized funding could mean faster access to a broader pool of investors, reducing reliance on a handful of gatekeepers.
Challenges Ahead
The road will not be without obstacles. Tokenized funds still face skepticism from regulators and traditional LPs. Questions about secondary market liquidity, investor protection and compliance remain unresolved in many jurisdictions.
Latin America itself poses challenges: political volatility in neighboring countries, currency risks and infrastructure gaps can slow down startups. Additionally, cultural differences in how business is conducted across markets like Mexico, Brazil, Colombia and Argentina must be navigated carefully.
Yet CoreNest’ s leadership believes El Salvador offers the right combination of legal clarity and government support to mitigate many of these risks. By situating itself in San Salvador, the firm is betting that what was once considered Latin America’ s smallest stage can become its biggest platform.
• Talent Pool: Latin America produces hundreds of thousands of STEM graduates annually – many of whom leave for lack of local opportunities
• Digital Infrastructure: Rapid smartphone adoption and improving Internet penetration are enabling new business models
CoreNest’ s strategy is to harness these structural advantages, channel them through a robust accelerator framework and plug them directly into global capital markets.
Tokenization as the future of VC
Perhaps the most disruptive element of CoreNest’ s model is its reliance on tokenized fund structures. While tokenization has been discussed for years, few traditional venture capital firms have dared to implement it at scale.
By launching the first legally recognized tokenized VC fund in El Salvador, CoreNest says it is testing a new frontier in venture finance. If successful, it could set a precedent for how future funds worldwide are structured.
Tokenization doesn’ t just democratize access; it also introduces liquidity into a notoriously illiquid asset class. Early-stage investors who traditionally must wait seven to 10 years for a return may one day be able to exit earlier via token markets.
Looking ahead: The Silicon Valley of Latin America?
Can El Salvador truly become the Silicon Valley of Latin America? Skeptics will argue that the comparison is premature. Silicon Valley is not just capital – it is decades of accumulated know-how, risk culture and network effects.
But CoreNest is not simply trying to replicate Silicon Valley. As Ras put it:“ We’ re not here to follow Silicon Valley’ s playbook, we’ re here to build something bigger.”
In many ways, Latin America doesn’ t need another Silicon Valley – it needs its own version tailored to its unique challenges and opportunities. If CoreNest succeeds, San Salvador could become a hub where fintechs solve financial inclusion, where AI startups optimize agriculture and where blockchain ventures reinvent cross-border payments.
The US $ 25 million tokenized fund is just the first step.
The real test will come when the accelerator begins in February 2026 and the first cohort of startups takes the stage in May. If even a handful of these companies succeed on a global scale, CoreNest’ s vision of transforming El Salvador into Latin America’ s innovation capital may no longer sound like ambition – it may be reality. p
40 INTELLIGENTCIO LATAM www. intelligentcio. com