World Bank Group’s IFC invests US$10 million in Mountain Nazca II Fund

Contxto – Early-stage tech startups in Latin America have caught the eye of a member of the World Bank Group.

Yesterday (9), the International Finance Corporation (IFC) announced it invested US$10 million in Mountain Nazca II. Venture capital (VC) firm, Mountain Nazca, will be in charge of this fund.

• Related article: Top 10 Venture Capital funds in Mexico

Mountain Nazca and IFC team up

So, why is the IFC investing now? Because Covid-19 shouldn’t damper the startup scene that’s been sizzling up until now. This is what Ary Naïm, Country Manager at IFC Mexico, had to say in a press release:

“Given the risk-averse context and economic slowdown, this investment in Mountain Nazca II is a show of IFC’s efforts to restore confidence and endorse the innovative entrepreneurial spirit in Mexico alongside a team with a great background of success in the sector.”

Therefore, “the current Covid-19 crisis has made it more strategic and relevant for the IFC to focus on tech companies that can operate and prosper within the circumstances of social distancing.”

Latin America prepares for a world after Covid

Why it’s a big deal: Latam startups are jumping to develop solutions for a “pseudo-post-Covid-era.” For example, Chilean DataCiencia developed software to detect if people are wearing their face mask properly.

• Related article: Are Covid-19 measures freedom killers? DataCiencia’s crowd surveillance AI tests the limits

Meanwhile, Entu is reducing contact between restaurant staff and customers in Colombia.

However, to develop and scale their products, startups need funding firepower. Enter Mountain Nazca and now the IFC.

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“Entrepreneurship shall play a crucial role in our social and economic recovery,” said Héctor Sepúlveda, Managing Partner at Mountain Nazca.

Then, he underlined that “this ongoing negative cycle initiated by Covid-19 can only be reversed by very talented people. These entrepreneurs and their teams are leading the transformation of the biggest industries in our region.”

Rightly so, it’s impossible to imagine business will ever be the same once it’s even safe to stop social-distancing.

Related articles: Tech and startups from Mexico!

-ML