MICROCAPITAL BRIEF: Multilateral Investment Fund to Invest $5.8 million in Equity in Nxtp Labs of Argentina to Support Technology Start-Ups in Latin America

The Multilateral Investment Fund (MIF), a member of the US-based IDB (Inter-American Development Bank) Group, recently approved a USD 5 million equity investment and USD 750,000 in technical assistance for Nxtp Labs, an Argentina-based company that provides seed funding for entrepreneurs in Latin America seeking to establish technology-based businesses in exchange for an equity stake worth between two and ten percent. The company also offers companies training and consulting support and sponsors “demo days” to provide entrepreneurs opportunities to pitch their projects to potential investors. Financial information on Nxtp Labs is unavailable.

With the increased funds, Nxtp Labs reportedly intends to increase the scale of its operations as well as focus on increasing support for women entrepreneurs in the company’s portfolio. MIF Senior Investment Officer Susana Garcia-Robles said, “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.”

By Nicole Boyd, Research Associate

About Nxtp Labs
Nxtp Labs is an Argentina-based technology start-up accelerator founded in 2011. The company offers seed funding, training and consultancy services to entrepreneurs seeking to establish technology-based businesses in Latin America in exchange for equity stakes of two to ten percent. Financial information on Nxtp Labs in unavailable.

About the Multilateral Investment Fund (MIF)
Multilateral Investment Fund (MIF) is an autonomous fund that was founded in 1993 by the US-based Inter-American Development Bank (IDB). Now a member of the IDB Group, MIF has 39 donating member countries from the Americas, Europe and Asia. Since its inception, MIF reports having approved 1,600 projects in 19 countries, disbursing approximately USD 100 million per year in grants, equity and loans.

Sources and Additional Resources:

Information sent by Inter-American Development Bank to MicroCapital.

MicroCapital. February 25, 2013, “MICROCAPITAL BRIEF: Multilateral Investment Fund (MIF) Donates $360k to Fundacion para el Desarrollo Socioeconomico Rural (FUNDESER) of Nicaragua to Support Transition to Regulated Status Under SIBOIF,” https://www.microcapital.org/microcapital-brief-multilateral-investment-fund-mif-donates-360k-to-fundacion-para-el-desarrollo-socioeconomico-rural-fundeser-of-nicaragua-to-support-transition-to-regulated-status/

MicroCapital. February 22, 2013, “MICROCAPITAL BRIEF: Multilateral Investment Fund (MIF) to Invest $2.5m in Equity in Microfinance Institution FONDESA of the Dominican Republic as it Seeks to Become a Regulated Entity,” https://www.microcapital.org/microcapital-brief-multilateral-investment-fund-mif-to-invest-2-5m-in-equity-in-microfinance-institution-fondesa-of-the-dominican-republic-as-it-seeks-to-become-a-regulated-entity/

MicroCapital. August 2, 2012, “MICROCAPITAL BRIEF: Accion Launches Microfinance Portfolio Management Service ‘Avanza,’” https://www.microcapital.org/microcapital-brief-accion-launches-microfinance-portfolio-management-service-avanza/

MicroCapital Universe Profile: Multilateral Investment Fund?http://microcapital.org/microfinanceuniverse/tiki-index.php?page=Multilateral+Investment+Fund+%28MIF%29

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