MICROCAPITAL BRIEF: MIF Invests $5m in Nxtp Labs Fund for Tech Firms Seeking Social Impact in Argentina, Paraguay, Uruguay

The Multilateral Investment Fund (MIF), a member of the IDB (Inter-American Development Bank) Group, recently announced it will invest USD 5 million in equity in a fund launched by Nxtp Labs, an Argentine supporter of technology start-ups in areas such as (fintech), education (edtech), and reducing negative environmental impacts (cleantech). Nxtp aims to collect USD 120 million for the fund to invest in Argentina, Paraguay and Uruguay.

Founded in 2011, Nxtp offers seed funding, training and consulting to entrepreneurs seeking to establish technology-based businesses in Latin America in exchange for equity stakes of 2 percent to 10 percent.

Founded in 1993, the Multilateral Investment Fund (MIF) provides funding to micro- and small enterprises in Latin America and the Caribbean. It has 39 member countries and also receives financing from private investors such as the Latin American Challenge Investment Fund, the Emergency Liquidity Facility and Accion. As of December 2015, MIF had a portfolio of approximately USD 612 million financing 435 projects.

By Sascha Strobl, Research Associate

Sources and Additional Resources:

IDB press release:

Nxtp Labs:

Multilateral Investment Fund:

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