The Development Bank of Latin America and the Caribbean (CAF) approved an investment of USD$5 million in Fund III of NXTP Ventures, as part of its commitment to promote the development of innovative startups in the region. This investment will be channeled through the Investment and Business Development Fund (FIDE) to support Small and Medium Enterprises (SMEs).
NXTP Ventures is a prominent private equity fund in Latin America, specialized in innovative and scalable technological startups led by disruptive entrepreneurs.
This initiative aims to support B2B segment startups in Latin America, especially in key areas such as cloud computing, Software as a Service (SaaS), technology applied to logistics, fintech, B2B Marketplace, artificial intelligence, and information technologies.
The investment made aligns with the strategic objectives of the Private Sector Vice Presidency of CAF, contributing to promoting investments in innovative sectors that boost economic productivity and reduce the access gap to capital for small businesses.
This investment also supports the growth of the investment ecosystem in the region in collaboration with NXTP Ventures, a recognized manager in Latin America that has made more than 200 investments since its creation in 2011, with 33 successful investment exits and the creation of five unicorns valued at USD$1 billion each.
With a contribution of USD$5 million, CAF will contribute to NXTP Ventures’ goal of raising USD$110 million to foster innovation throughout the continent.
In addition to financial investment, NXTP Ventures plays a fundamental role in raising awareness and promoting a proactive attitude among entrepreneurs toward generating a positive environmental and social impact, including promoting gender diversity.
Since its inception, it has supported 1,500 entrepreneurs, with 25% of funded companies founded by diverse gender teams.
The social impact of these investments in startups is reflected in the creation of direct employment (8,700 jobs) and indirect employment (7.9 million) in the region, thanks to the support to companies backed by the fund.
The FIDE, from where this investment will be made, is an investment fund established in 2001 and managed by CAF, whose purpose is to strengthen financially SMEs and support their development.
Since its inception, it has been instrumental in driving venture capital growth in the region and developing the private ecosystem in countries that require a boost, generating significant capital mobilization.