IDB Invest made a $5 million equity investment in the Nazca C-Fund I, LP (Nazca Continuity Fund I) to support the growth potential of Nazca’s top two venture capital funds with high-performing tech-enabled companies across Latin America and the Caribbean. The Nazca Continuity Fund I is managed by Nazca C-Fund I GP, LLC and is Nazca’s first fund focused on the early growth stage to scale-up and expand successful ventures.

The project will increase the availability of risk capital for innovative and fast-growing technology-enabled firms in the region, enabling the Nazca Continuity Fund I to support companies’ growth, facilitate their cross-border expansion, and contribute to the development of the innovation and technology ecosystem across the region.

Nazca is one of the most active Mexican venture capital firms in Latin America and the Caribbean, with a track record that includes two unicorns.

Technology adoption in the region is rapidly accelerating, making it one of the most dynamic markets globally. Rapidly growing, young, innovative companies are playing a critical role in job creation and driving growth. They also contribute to social and economic inclusion through new solutions to provide essential goods and services at scale to underserved populations.

The investment also includes advisory services in gender, diversity and inclusion to further increase the fund’s capacity for gender-lens investing and internal best practices. The advisory comprises diagnostic using the Women’s Empowerment Principles Gender Gap Analysis Tool (WEP Tool), a Gender Action Plan to close gender gaps, and a gender-lens investment framework to align deals to the 2X Challenge Financing for Women criteria and mobilize private capital for women’s empowerment in at least 30% of the investee companies.

Latin America and the Caribbean historically lagged other regions in attracting venture capital investments and fostering an ecosystem for innovation. This started to change five years ago when investment began increasing significantly, reaching a record $15.9 billion in 2021. As a percentage of GDP, venture capital investments in the region are still behind other emerging economies.

As the innovation ecosystem in the region continues to evolve and nurture the next generations of successful tech startups, IDB Invest’s equity investment supports the availability of early-growth financing as well as expert advice and specialized networks to support their consolidation, expansion and achieve their full potential.

This deal is expected to contribute to four United Nations Sustainable Development Goals (SDGs): Gender Equality (SDG 5), Decent Work and Economic Growth (SDG 8), Industry, Innovation & Infrastructure (SDG 9), and Partnership for the Goals (SDG 17).

About IDB Invest

IDB Invest, a member of the Inter-American Development Bank Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social, and environmental development in the region. With a portfolio of $16.3 billion in assets under management and 394 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries.

About Nazca LAC Digital Growth Fund

Nazca is an early-stage VC firm founded in 2014 with a challenging mission: to empower the best leaders in Mexico and Latin America, entirely based on merit, and to balance the status-quo between capital and talent. Nazca´s empowerment vision focuses on building the ultimate environment for each founder to thrive. An environment where every leader and their teams can flourish and reach their maximum potential faster. By doing so, Nazca is setting their region on a path towards social and economic success. Nazca provides multi-stage venture capital, mainly focusing on early stages of companies where the fund can provide value in this challenging stage. Through its platform, Nazca delivers unique peer-learning opportunities as well as unparalleled expert networks. Also enabling unprecedented access to key stakeholders and critical gatekeepers. This facilitates swift entry and access to preferred relationships with renowned commercial partners. Nazca´s platform also helps identify and attract the most talented individuals to join the founders´ teams. And most importantly, achieves all this while creating strong and sustainable relationships.