The Multilateral Investment Fund (MIF), member of the Inter-American Development (IDB) Group, made the official announcement. The organization has approved an equity investment of US$5 million and US$750,000 in technical cooperation assistance to support the expansion of Argentine accelerator NXTP Labs throughout Latin America.
Through this investment, the MIF seeks to promote the extension of the technology startup acceleration model all over the region.
The organization announced:
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.”
This deal will not only result in new funds for NXTP Labs but also strategic support in its endeavor to consolidate its position as an accelerator and investor made in Latin America with the ability to scale its brand and technical capacity. The next step for NXTP, which is headed by Ariel Arrieta, Gonzalo Costa and Marta Cruz, will be to set up shop in Chile later this year.
This text has been adapted and translated into English by Emily Stewart from its original Spanish publication.