By Narayan Ammachchi
Technology start-ups in Latin America continue to see positive momentum with the Inter-American Development Bank (IDB) agreeing this week to inject $5 million into NXTP Labs, one of the more prominent start-up accelerators in the region.
According to the accelerator, the IDB’s venture capital arm Multilateral Investment Fund has agreed to provide $5 million in equity investment and $750,000 in technical cooperation assistance.
It provides seed funding, office space and mentoring in exchange for an equity stake ranging from two to ten percent.
“With our support, NXTP Labs will reach out to 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.”
NXTP holds conferences and exhibitions across the world, offering a stage for LatAm entrepreneurs to put their projects on display. Such events, the accelerator believes, will bring entrepreneurs face to face with potential investors.
Part of the fund will be spent on programs designed to support women entrepreneurs, with the accelerator saying that its aim is to double the number of women entrepreneurs in its portfolio.
The project will benefit approximately 750 business owners and an estimated 200-250 start-ups in the region’s digital, mobile and technology sector, NXTP stated in a press release.
NXTP claims that it gained 80 private investors and supported more than 50 start-ups over the past one year.
Moreover, it sold one of the start-ups in its portfolio to what it calls ‘a strategic buyer.’