Argentina’s seed fund and startup incubator NXTP Labs has been given $3 million by the International Finance Corporation (IFC) in order to encourage the development of young enterprises in emerging countries.
The fund is the part of a $30 million budget that IFC has earmarked for its Startup Catalyst initiative, which is aimed at backing accelerators and seed funds in emerging markets.
It is not the first time NXTP Labs has received investment from an international financial agency. In 2013, the Inter-American Development Bank (IDB) similarly injected $5 million into the Argentinean accelerator.
With operations in Argentina, Chile, Colombia, Mexico, and Uruguay, NXTP Labs is one of the most active early-stage funds for tech companies in Latin America.
Barely four years old, the accelerator claims to have invested in more than 150 startups, including the likes of iBillionaire, KidBox, and Wideo. The accelerator provides seed funding, office space, and mentoring in exchange for an equity stake ranging from 2% to 10%.
Earlier this year, IFC invested $8 million Afluenta, an Argentina-based fintech firm backed by NXTP Labs.
A subsidiary of the World Bank, IFC says it is looking to invest in accelerators in Mexico and Ukraine as well. It seems IFC is focusing on fintech firms, because digital finance is projected to create millions of jobs in emerging markets in the years to come.
Recently, it has talked of doubling down its venture capital investments over the next two years. The increase includes $500 million in direct investments as well as $150 million in technology VC fund managers.
“IFC will substantially step up its funding efforts to support innovative businesses and early-stage fund managers, with the intent to support innovation ecosystems and new opportunities for growth such as digital health, new age education systems, and mobile services,” said Nikunj Jinsi, IFC’s global head of venture capital.