$5 million in equity will promote expansion of technology start-up accelerator model
The Multilateral Investment Fund (MIF), a member of the Inter-American Development Bank (IDB) Group, has approved a $5 million equity investment and $750,000 in technical cooperation assistance to support the expansion of NXTP Labs, a regional accelerator for technology start-ups.
NXTP Labs, which is adapting Silicon Valley’s Y Combinator and TechStars models for Latin America, offers start-ups seed funding and an acceleration program for entrepreneurs who want to start digital, mobile and technology businesses in Latin America.
With the MIF’s support, NXTP Labs will scale up its model, which supports regional and international “demo days” (demonstration days) events that allows entrepreneurs supported by the fund to present their projects to potential investors. Part of the technical cooperation will finance specific actions to support women entrepreneurs in the NXYP Labs portfolio, with the goal of doubling the number of women in their portfolio.
The project will benefit will be approximately 750 business owners and an estimated 200-250 start-ups in the region’s digital, mobile and technology sectors.
"With our support, NXTP Labs will reach many more entrepreneurs in a shorter time," said MIF senior investment officer Susana Garcia-Robles, one of the project leaders. "With this project, we hope to encourage the creation of a more dynamic entrepreneurial culture in which entrepreneurs can take risks without being stigmatized if their first attempts fail."
About NXTP Labs
Founded in 2011, NXTP Labs is one of Latin America’s pioneering start-up accelerators in and the first with a regional focus. It has already completed a one-year “launch” phase in which it graduated more than 50 start-ups from its program, gained the support of nearly 80 private investors, and sold one of the start-ups in its portfolio to a strategic buyer. NXTP Labs provides active support and an extensive network of contacts to entrepreneurs who want to start and grow businesses. It provides seed funding, office space and mentoring in exchange for an equity stake ranging from 2 to 10 percent.
About the MIF
The Multilateral Investment Fund (MIF), funded by 39 donors, supports private sector-led development benefitting low-income populations and the poor - their businesses, their farms, and their households. The aim is to give them the tools to boost their incomes: access to markets and the skills to compete in those markets, access to finance, and access to basic services, including green technology. A core MIF mission is to act as a development laboratory - experimenting, pioneering, and taking risks in order to build and support successful micro and SME business models.
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