- IFC will invest up to $5 million in Sturgeon Emerging Opportunities II, LP, a new venture capital fund managed by Sturgeon Capital, to support tech startups in Central Asia.
- The fund will focus on areas like fintech, agritech, healthtech, and ed-tech to help entrepreneurs scale their businesses and create long-term employment opportunities.
- Sturgeon Capital aims to address the funding gap in the tech ecosystem of Central Asia and other emerging markets like Egypt and Pakistan.
- IFC’s investment in Sturgeon is part of the Startup Catalyst program, which supports underserved venture capital ecosystems in emerging markets.
- IFC, as a member of the World Bank Group, committed a record $43.7 billion in fiscal year 2023 to private companies in developing countries to boost shared prosperity and end extreme poverty.
Investment in Sturgeon Capital Fund by IFC
In a move to bolster the tech startup ecosystem in Central Asia, the International Finance Corporation (IFC) has announced its investment of up to $5 million in the Sturgeon Emerging Opportunities II, LP fund managed by Sturgeon Capital. This investment aims to support early-stage tech startups in the region and drive digital innovation across various sectors. Sturgeon Emerging Opportunities Fund II will primarily focus on areas such as fintech, business-to-business platforms, agritech, healthtech, and ed-tech. The fund’s objective is to assist emerging entrepreneurs in scaling their businesses, enhancing operational efficiency, and creating sustainable job opportunities in Central Asia and beyond.
Sturgeon Capital Fund’s Mission and Vision
Kiyan Zandiyeh, the founding partner of Sturgeon Capital, highlighted the significance of technological advancements in addressing key challenges faced by emerging markets, including job creation and financial inclusion. The collaboration with IFC marks a significant milestone for Sturgeon, with IFC becoming the first institutional investor in the Sturgeon Emerging Opportunities II fund. Zandiyeh expressed enthusiasm about working alongside IFC and other investors to support tech startups and bridge the funding gap prevalent in the tech ecosystem of the region. Sturgeon Capital envisions not only investing in Central Asia but also exploring opportunities in other emerging markets like Egypt and Pakistan.
Challenges and Opportunities for Tech Startups in Central Asia
Despite the potential for growth in the tech startup industry in countries like Central Asia, Egypt, and Pakistan, local entrepreneurs often encounter hurdles in securing adequate capital to kickstart and expand their ventures. Wiebke Schloemer, IFC’s Director for Türkiye and Central Asia, emphasized the burgeoning interest in venture capital across Central Asia while acknowledging the market’s nascent nature, underserved by foreign investments. By backing funds like Sturgeon, IFC aims to inject much-needed capital into innovative local businesses, enabling them to scale their operations and attract further institutional and private investments. This strategic support could pave the way for the replication of success stories witnessed in other regions, fostering a thriving tech ecosystem in Central Asia and beyond.
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IFC’s Commitment to Supporting Emerging Markets
IFC’s investment in Sturgeon Capital Fund is part of its Startup Catalyst program, which focuses on addressing funding gaps in underserved venture capital ecosystems by investing in various entities such as incubators, accelerators, and seed funds in emerging markets. The program specifically targets high-risk markets, including some of the world’s most economically disadvantaged and fragile countries. Since its inception in 2016, the Startup Catalyst program has empowered over 2,800 entrepreneurs, including 700 women, in 24 countries through 21 different funds. As a key member of the World Bank Group, IFC plays a pivotal role in supporting the private sector in over 100 countries, leveraging its resources and expertise to create opportunities and markets in developing nations. In the fiscal year 2023 alone, IFC committed a record $43.7 billion to private companies and financial institutions in developing countries, contributing to the eradication of extreme poverty and the promotion of shared prosperity amidst global challenges.
The partnership between IFC and Sturgeon Capital Fund signifies a significant step towards fostering innovation, economic growth, and job creation in Central Asia and beyond. By supporting tech startups and addressing funding gaps in the region’s tech ecosystem, the collaboration aims to catalyze digital transformation, empower local entrepreneurs, and unlock new opportunities for sustainable development in emerging markets.
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