MIF invests US$5m in NXTP Labs’ Impact Investing Fund for Latin American Tech-Driven Social Enterprises.
(Press Release) The Multilateral Investment Fund (MIF) of the Inter-American Development Bank (IDB) has approved an equity investment of US$5 million in an impact investing fund for Latin American tech-driven social enterprises. The MIF is the first anchor investor in the NXTP Labs Fund providing seed capital for approximately 32 companies in technology verticals such as FinTech, AgTech, EdTech, CleanTech, Marketplace, SaaS for SMEs, Collaborative Economy and Disruptive Technologies, among others.
The Fund’s target capitalization is US$120 million, with a set allocation ranging between US$30 and US$50 million to provide financing to companies in Argentina, Paraguay and Uruguay, depending on the Fund’s final capitalization. Through this Fund, NXTP Labs will take to the next level the effort it started with NXTP Fund I, a US$38.5 million fund that has invested in technology companies in Latin America for the past five years, in which the MIF has also invested.
NXTP’s Impact Investing Fund is an effective response to the emergence of socially conscious and dynamic entrepreneurs increasingly focused on solving big pressing societal problems by leveraging the power of technology.