The International Finance Corp. has invested $50 million in the past three years in startups and funds, such as a $70 million Wamda Capital fund, to promote economic inclusion in the Middle East.
The lessons: mixed. âIf I get two or three companies out of Wamda, that in my mind is a success,â Dimitris Tsitsiragos, IFCâs vice president, told Forbes contributor Elizabeth MacBride. âThe failure rate in this space is high.â
MacBrideâs set of early lessons includes: 1) Tech startups donât employ many people, but ripple effects can transform industries and create jobs. 2) The impact of venture capital investments are hard to measure. For example, whatâs the impact of a successful fintech startup that provides insurance that letâs more women become entrepreneurs?
3) Big exits are possible, but rare. 4) And accelerators can speed growth. The IFCâs investment in Flat6Labs in Cairo has led it to backing accelerators elsewhere.