Photo: NXTP Ventures
NXTP Ventures, one of the leading Venture Capital funds focused on B2B (Business to Business) in the early stages in Latin America, has announced the successful closing of its third and largest fund, NXTP III, with a total investment of USD $98 million. This new fund will enable NXTP to continue its commitment to supporting the most promising tech founders in Mexico and Latin America and expand its regional investment strategy.
Founded in 2011, NXTP Ventures has established itself as one of Latin America’s most recognized and active early-stage Venture Capital firms, with offices in Buenos Aires, São Paulo, and Mexico City. Their primary focus is investing in tech startups in stages ranging from pre-seed to Series A, providing funding ranging from USD $500,000 to USD $5 million. The firm has been a crucial supporter of numerous successful companies, including B2B unicorns like Auth0, TiendaNube, Mural, Frete.com, and Betterfly.
NXTP III represents a significant increase compared to its previous fund size, marking an important milestone in the Latin American investment landscape. This investment will allow NXTP to expand its reach and substantially support its growing portfolio of companies over more extended periods.
Investors in NXTP III include prominent institutional funds from the United States and globally, as well as regional funds of funds, family offices, high-net-worth individuals, and tech company founders in Latin America, the United States, and Europe. Most investors who participated in previous NXTP funds have increased their investment in this new fund, reflecting their confidence in the firm and its track record of success over time.
Darly Bendo, Managing Partner at NXTP, expressed excitement about continuing to support exceptional founders and companies throughout Latin America, emphasizing the significance of this achievement in a global context where global Venture Capital funding has faced significant challenges.
“We are thrilled to continue backing exceptional founders and companies across Latin America. Despite recent headwinds in global Venture Capital financing, we have successfully closed our largest fund to date, reaffirming our track record, long-term investment strategy, positioning, and the potential of the Latin American market,” said Darly Bendo.
NXTP’s commitment to the tech ecosystem in Latin America has been evident over the years, supporting over 130 regional companies. These companies have raised over USD $2 billion in additional capital, and NXTP has worked alongside leading global and regional funds to support their growth and success.
The firm, which has become a reference in the Venture Capital sector in Latin America, focuses on B2B technology verticals, including Cloud & SaaS, Fintech and Payments, E-commerce, B2B marketplaces, and Data and Artificial Intelligence. Alexander Busse, Managing Partner at NXTP, emphasized the importance of digitalization and the incorporation of technology in the workflow of companies in the region.
“We are convinced that Latin America has a significant opportunity to help companies and SMEs become more efficient by digitizing their operations and incorporating more technology into their workflows. We will see the emergence of huge companies that help solve this, and NXTP is in a unique position to identify and help them grow,” highlighted Alexander Busse.
With its extensive network of contacts in Latin America, NXTP seeks to identify the best entrepreneurs in the region and actively support them in expanding their businesses, even on a global scale. With this new fund, the firm aims to capitalize on the opportunities presented by technological trends in various sectors and industries in Latin America, maintaining a long-term commitment to founders, companies, and communities in the region.
Data from Crunchbase reveals a rebound in investment in Latin American startups, with an 8% increase in funding in the third quarter, totaling approximately USD $700 million. This increase underscores the growing relevance of the sector in the region, although there is still a long way to go, especially when comparing Venture Capital investment in the region to previous years. For example, in 2021, a record-breaking USD $13 billion was invested in Latin American startups.
