To bolster digital economies and nurture the growth of early-stage technology startups in Central Asia, the International Finance Corporation (IFC) has committed up to $5mn in financing to the Sturgeon Emerging Opportunities II, LP, a fresh venture capital initiative managed by Sturgeon Capital, a prominent investor in the venture capital realm.
The infusion of funds from the IFC is poised to provide vital support to tech startups in Central Asia, particularly in sectors like fintech, business-to-business platforms, agritech, healthtech, and ed-tech. The overarching goal is to facilitate emerging entrepreneurs in scaling their businesses, enhancing operational efficiency, and fostering long-term employment prospects within the region.
"We firmly believe that technological innovations hold the key to addressing pivotal challenges in emerging markets, such as job creation and financial inclusion," remarked Kiyan Zandiyeh, the founding partner of Sturgeon Capital. "We are immensely pleased to have IFC onboard as the inaugural institutional investor for the first close of Sturgeon Emerging Opportunities II. We eagerly anticipate collaborating with IFC and our other investors to bolster tech startups and tackle a notable funding gap within the tech ecosystem of the regions."
While primarily targeting investments in Central Asia, the Sturgeon Emerging Opportunities Fund II will also scout for promising prospects in other emerging markets such as Egypt and Pakistan. Sturgeon Capital estimates that by 2030, the tech startup sector in these countries could yield nearly $300mn in annual digital revenue, benefiting a populace exceeding half a billion individuals. However, local tech startups often encounter hurdles in securing capital for launching and scaling their ventures.
"Venture capital is steadily gaining traction across Central Asia, yet it remains a burgeoning market underserved by foreign investments," remarked Wiebke Schloemer, IFC’s Director for Türkiye and Central Asia. "Through investments in funds like Sturgeon, IFC endeavors to channel much-needed capital to the most innovative local enterprises. This backing will empower them to scale up and pave the way for increased institutional and private investments, mirroring the successes witnessed in other regions."
IFC's investment in Sturgeon forms a part of its Startup Catalyst program, which aims to address funding gaps in underserved venture capital ecosystems by investing in incubators, accelerators, and seed funds with a focus on emerging markets. The program specifically targets high-risk markets, including some of the world's poorest and most fragile countries. Since its inception in 2016, the program has supported over 2,800 entrepreneurs, including 700 women, across 24 countries through 21 funds.
IFC, a member of the World Bank Group, stands as the largest global development institution dedicated to the private sector within emerging markets. Operating in over 100 countries, IFC utilizes its capital, expertise, and influence to foster markets and opportunities in developing nations. In fiscal year 2023, IFC committed a record $43.7bn to private companies and financial institutions in developing countries, leveraging the power of the private sector to alleviate extreme poverty and advance shared prosperity amidst the multifaceted challenges confronting global economies.
Follow Daryo's official Instagram and Twitter pages to keep current on world news.
Comments (0)