IFC contributes $5 M to New Sturgeon Capital Fund to help Central Asian tech startups

The International Finance Corporation (IFC) will invest up to $5 million in Sturgeon Emerging Opportunities II, LP, a new venture capital fund managed by Sturgeon Capital, a significant venture capital investor, in order to support the development of early-stage tech startups in Central Asia and to promote digital economies.

Sturgeon Emerging Opportunities Fund II, according to a statement released by IFC on Tuesday, will prioritize startups in industries like ed-tech, fintech, agri-tech, health-tech, and business-to-business platforms.

It seeks to support burgeoning business owners in growing their companies, enhancing operational effectiveness, and generating long-term job opportunities in the local community.

“We believe technological innovations can help solve some of the key challenges in emerging markets, including job creation and financial inclusion,” said Kiyan Zandiyeh, Sturgeon’s Founding Partner.

“We are delighted to have IFC join the first close of Sturgeon Emerging Opportunities II as the first institutional investor,

“We look forward to working with IFC and our other investors to support tech startups and address a significant funding gap in the regions’ tech ecosystem,” he added.

The fund will primarily invest in Central Asia, but it will also search for opportunities in other developing economies, including Pakistan and Egypt, the statement said.

According to Sturgeon Capital, by 2030, the tech startup sector in these nations could benefit over half a billion people by producing digital revenue of almost $300 million annually.

It was mentioned that raising money to launch and grow their products and services is a common challenge for local tech start-ups.

“Venture capital is gaining traction across Central Asia, but it’s still a nascent market underserved by foreign investments,” said Wiebke Schloemer, IFC’s Director for Türkiye and Central Asia.

“By investing in funds like Sturgeon, IFC aims to bring much-needed capital to the most innovative local businesses,

“This support will enable them to scale and pave the way for more institutional and private investors, replicating the successes we have seen in other regions,” she added.

The IFC’s Startup Catalyst program, which fills funding gaps in underutilized venture capital ecosystems by funding incubators, accelerators, and seed funds with an emphasis on emerging markets, includes the investment in Sturgeon.

The initiative focuses on high-risk markets, including those in some of the most impoverished and unstable nations on earth.

Through 21 funds, the program has provided support to over 2,800 entrepreneurs in 24 countries, including 700 women, since 2016.