MIF invests in NXTP Labs’ new Impact Fund

NXTP Labs, Venture Capital Fund and ARCAP’s founding member, has announced a 5 million dollars investment in their Fund II by the MIF.

In this way, the firm begins the capitalization of its target of USD 120 MM for their Fund II, with a set allocation between USD 30–50 MM, to provide financing to companies in Argentina, Paraguay and Uruguay, depending on the Fund’s final capitalization.

This news closes an excellent week for the Venture Capital industry in Argentina, after Kaszek Ventures announced their Fund 3 earlier, reinforcing the interest in funds with argentine GP’s from relevant international LP’s.

Below we share NXTP Labs’ official press release

MIF invests USD 5 million in NXTP Labs’ new Impact Fund

NXTP Labs is making a big move into the world of impact investment in Latin America. The company has received approval for a USD 5 MM investment by The Multilateral Investment Fund (MIF) for its new Impact Fund for Tech-Driven Social Enterprises in Latin America.

The MIF is the first anchor investor in the NXTP Labs fund that will provide capital to 30–40 companies operating in technology verticals such as FinTech, AgTech, EdTech, CleanTech, Marketplace, SaaS for SMEs, Collaborative Economy, Disruptive technologies, among others, and pursue both social impact and financial returns.

The new Fund’s target capitalization is USD 120 MM, with a set allocation between USD 30–50 MM to provide financing to companies in Argentina, Paraguay and Uruguay, depending on the Fund’s final capitalization.

“In Latin America we see an abundance of opportunities for investing in high impact technology companies. When faced with similar risk/return profiles, the third derivative of our investment process is social impact”.
Ariel Arrieta, Co-founder of NXTP Labs.

NXTP Labs believes in the transformative power of technology and capital to generate positive impact at scale. In the last years the company has been supporting companies with innovative technological solutions that democratize access to products and services previously unavailable to large parts of the population in Latin America.

Through this Fund, NXTP will mainstream the use of technology to achieve social impact, continuing the effort it started with NXTP Fund I, a USD 38.5 MM fund that has invested in 184 technology companies in Latin America over the past five years.

The history behind the collaboration

The successful history of collaboration between the Multilateral Investment Fund and NXTP Labs started in 2013 when the MIF became the lead investor in NXTP Labs Fund I.

Over the years, MIF also supported NXTP Labs’ initiative Mujer Emprendedora LAC (LAC Women Entrepreneur) and together they built WeXchange, the first Latin American forum focused on connecting and empowering female entrepreneurs with high-growth businesses.

MIF also had a key role in supporting Tecnolatinas, the first study that identifies technology companies in Latin America, developed by NXTP Labs and Surfing Tsunamis, released earlier this year.