OPIC Launches Venture Capital Program with Financing to India-focused Iron Pillar
October 5, 2018
(OPIC)
New venture capital program to invest in later stage venture funds
supporting developing economies
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.
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