New venture capital program to invest in later stage venture funds supporting developing economies
- Focus on supporting entrepreneurs and small businesses in tech-enabled sectors including healthcare, education, financial services, agriculture, and energy services
- Emphasis on funds empowering female entrepreneurs and funds with strong potential to achieve growth and impact
MUMBAI – The Overseas Private Investment Corporation (OPIC) on Friday announced the launch of a venture capital initiative designed to build on the agency’s existing financial tools by supporting venture capital funds investing in proven and emerging technologies that address critical challenges facing the developing world.
Iron Pillar, a venture growth investor specializing in technology businesses in India, is the first fund commitment under this new initiative. Iron Pillar provides growth capital to proven businesses in the enterprise and consumer technology sectors. The fund has begun developing a portfolio of investments in technology businesses that demonstrate potential for making a positive impact on the Indian economy.
The launch of this venture capital program advances OPIC’s ongoing efforts to help entrepreneurs and early stage companies achieve scale and attract institutional capital to grow their business.
OPIC will typically commit between $5 million and $25 million, or up to 25 percent of a fund’s total capitalization. Funds applying for OPIC support will be selected on a quarterly basis through an open and competitive process and eligible funds must comply with OPIC’s standards on human rights, labor rights and U.S. effects.
“Venture capital is an effective tool for identifying entrepreneurs that show promise for impact and growth,” said David Bohigian, OPIC Executive Vice President. “OPIC has seen many small businesses have a big impact in emerging markets and by supporting venture capital funds focused on these markets, we’ll be able to reach more of these promising young businesses.”
“We are delighted to be the first fund selected for OPIC’s new global venture capital program,” said Sameer Nath, Managing Partner of Iron Pillar. “We are excited about the venture growth investment opportunity in the Indian market and look forward to partnering with an experienced and long term investor like OPIC on this important journey.”
The launch of the venture capital program comes at a time when venture capital investment in emerging markets is growing. According to Preqin, venture capital investment in emerging markets has risen from $800 million invested across 127 deals in 2009, to $13 billion invested across 1,168 deals in 2017.
OPIC is the U.S. Government’s development finance institution. It mobilizes private capital to help address https://www.opic.gov/opic-action/featured-projects/latin-america-caribbean/avantel-expanding-access-telecommunications-colombiacritical development challenges and in doing so, advances U.S. foreign policy and national security priorities. Because OPIC works with the U.S. private sector, it helps U.S. businesses gain footholds in emerging markets, catalyzing revenues, jobs and growth opportunities both at home and abroad. OPIC achieves its mission by providing investors with financing, political risk insurance, and support for private equity investment funds, when commercial funding cannot be obtained elsewhere. Established as an agency of the U.S. Government in 1971, OPIC operates on a self-sustaining basis at no net cost to American taxpayers.
All OPIC projects adhere to high environmental and social standards and respect human rights, including worker’s rights. By mandating high standards, OPIC aims to raise the industry and regional standards of the countries where it funds projects. OPIC services are available for new and expanding business enterprises in more than 160 countries worldwide.