IFC Venture Capital

IFC, the development finance institution, treats venture capital as one of its expertise areas, alongside agribusiness and forestry, financial institutions, funds, health, education, infrastructure, manufacturing, public-private partnerships, and tourism, retail and property. Its stated aim in this area is to back technology ventures that open up new opportunities in emerging markets, change established industries and still earn a return.

Backing founders and funds

IFC says it invests in two ways. It puts money directly into technology startups, and it partners with venture capital funds, seed funds and accelerators, so that whole technology ecosystems in emerging markets can grow. Beyond equity, it names quasi-equity and venture or asset-backed lending among the instruments it can offer, together with access to networks, sector knowledge and an understanding of local markets and regulation. The figures it publishes on its venture work carry a data date of June 2024.

Sectors it concentrates on

The institution describes its focus as technology-driven business models in sectors where impact is high. Its list runs from fintech and health tech to agtech, climate tech, edtech, enterprise technology, e-logistics and mobility. It also runs a venture platform for startups in Africa, the Middle East, Central Asia and Pakistan.

Programs for early-stage companies

Several named initiatives sit under the venture banner:

• Startup Catalyst invests in seed funds, accelerators and incubators that help early-stage companies become ready for later-stage investment. IFC says the program has been enlarged with a new pool of capital.
• TechEmerge is a matchmaking program that connects technology innovators with leading organizations in emerging markets so that new solutions can be piloted.
• A gender initiative helps partner funds and the companies they back to improve gender equality and take up gender-lens investing.

Applicants are pointed to a page on how to apply for financing, and the venture pages also carry insights, reports and stories of impact.

Connected infrastructure work

IFC also publishes work on infrastructure, including a study of municipal broadband networks. It argues that high-speed internet access matters more since the rise of digital services during the pandemic, yet many adults in emerging-market cities still lack it. It sets out three basic models for networks that local governments build, operate or finance, often with private partners, and says well-run versions can narrow the digital divide and create openings for private companies.

Where IFC works

IFC arranges its country work by region, from Africa and South Asia through the Middle East, Central Asia, Turkiye, Afghanistan and Pakistan, to Latin America and the Caribbean, Europe, Western Europe, and East Asia and the Pacific. Among its thematic areas are inclusive business, climate business, gender, and work in fragile or conflict-affected situations.

IFC Venture Capital is listed under IFC, an international development finance institution. IFC organises its work around expertise areas, one of which is venture capital, alongside a range of finance products.

What IFC Venture Capital does

• Equity: investment in companies as part of IFC's product range.
• Loans and blended finance: related funding tools sitting beside its venture work.
• Advisory: guidance for companies and financial institutions.
• Asset management: management of funds for investors.

Customers and markets

IFC operates across East Asia and the Pacific, Europe, Latin America and the Caribbean, the Middle East, Central Asia, South Asia and Africa. Its expertise areas include agribusiness, financial institutions, health, education, infrastructure, manufacturing and tourism.

Key facts

• Parent: IFC
• Themes: gender, climate business, inclusive business and fragile or conflict-affected situations