ifc and sturgeon capital

IFC invests $5mn in British Sturgeon Capital Fund to support tech startups throughout Central Asia

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To support the burgeoning digital economies and facilitate the growth of early-stage technology startups in Central Asia, the International Finance Corporation (IFC) has announced a significant investment of up to $5 million in Sturgeon Emerging Opportunities II, LP. This new venture capital fund is managed by Sturgeon Capital, a leading entity in the venture capital sector.

The investment aims to provide critical support to tech startups across various sectors, including fintech, business-to-business platforms, agritech, healthtech, and ed-tech. The primary goal is to enable these emerging entrepreneurs to scale their operations, enhance efficiency, and create sustainable employment opportunities within the region.

Kiyan Zandiyeh, the founding partner of Sturgeon Capital, expressed his enthusiasm about the collaboration: “Technological innovation is essential for overcoming key challenges in emerging markets, such as job creation and financial inclusion. We are thrilled to have the IFC as our initial institutional investor for the first close of our new fund. We look forward to working together to strengthen tech startups and address the significant funding gaps within the tech ecosystem of these regions.”

While the fund primarily targets investments in Central Asia, Sturgeon Emerging Opportunities Fund II will also explore opportunities in other emerging markets like Egypt and Pakistan. Sturgeon Capital forecasts that by 2030, the tech startup sector in these countries could generate nearly $300 million in annual digital revenue, potentially impacting over half a billion people. However, local tech startups often face significant challenges in accessing capital to launch and expand their businesses.

Wiebke Schloemer, IFC’s Director for Türkiye and Central Asia, highlighted the importance of venture capital in the region: “Venture capital is becoming increasingly prevalent across Central Asia, yet it is still an emerging market that is underexplored by foreign investors. By investing in funds like Sturgeon, the IFC aims to direct much-needed capital to the most innovative local enterprises, enabling them to scale and attract more institutional and private investment, similar to successes seen in other regions.”

This investment is part of IFC’s Startup Catalyst program, which seeks to bridge funding gaps in underserved venture capital ecosystems by investing in incubators, accelerators, and seed funds focusing on emerging markets. Since launching in 2016, the program has supported over 2,800 entrepreneurs, including 700 women, across 24 countries through 21 funds.

IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector in emerging markets. Operating in over 100 countries, IFC uses its capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2023, IFC committed a record $43.7 billion to private companies and financial institutions in developing countries, leveraging the private sector to help reduce extreme poverty and boost shared prosperity in the face of complex global economic challenges.

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