NXTP Labs, a seed capital fund with an acceleration program for Latin America, and Naranya Labs, a Latin American accelerator and seed investment fund based in Mexico, have joined forces in a partnership that will include a $50 million regional investment fund.
“We are creating the biggest fund in Latin America for early-stage companies,“ said Naranya Ventures’ managing partner Pablo Salazar, who was at eMerge Americas Techweek on Tuesday, where the new fund was announced. This partnership will cover Argentina, Brazil, Chile, Colombia, Mexico and Uruguay, said Salazar, who will lead the fund’s efforts in Mexico.
The agreement includes a commitment to invest at least $8 million in Mexico, which includes the contribution by the Mexican Government through INADEM (the National Entrepreneurship Institute). Salazar told The Next Web that the $8 million will be used to invest in 48 startups in Mexico, while also covering follow-on investments over the next four years. Said Ariel Arrieta, co-founder and CEO of NXTP Labs: “This alliance is a sign that Mexico has a solid capital market willing to lead the technological innovation in LatAm.”
The partnership combines the experience of Arrieta, Marta Cruz, Francisco Coronel, Gonzalo Costa of NXTP Labs, and Arturo Galvan and Salazar of Naranya Labs. The agreement also gives the regional NXTP a foothold in Mexico, a major Latin American ecosystem it wasn’t yet operating in. NXTP also has a presence in San Francisco.
The fund’s portfolio will include more than 150 companies, and the goal is to support 300 startups with a focus on the Latin American market. The fund-raising stage is expected to be complete by December.