Uruguay Innovation Hub (UIH) launched a new co-investment instrument in startups that aims to achieve a positive impact on the country’s innovative ecosystem and the IT sector, that continues to grow.
UIH thus opened a registry for those seeking to apply to the scheme, sharing the investment with entrepreneurial capital organizations and angel investors in technology-based or scientific-technological startups in early stages.
In the case of the startups, They will be provided access to a new source of funding at an early stage, driving innovation by supporting the development and expansion of new technologies and solutions.
With respect to private investment, The strategy is to encourage the participation of private investors by mitigating investment risk. At the same time, investment in emerging companies with high growth potential will be encouraged.
Finally, regarding the innovative ecosystem, UIH highlighted that “the startup environment is strengthened by increasing the flow of available capital.”
“At the same time, our country becomes more attractive for entrepreneurial talent by offering a favorable environment for the development of new companies,” they assessed and concluded: “This new instrument complements other initiatives promoted by the UIH and by other national organizations that support innovation from Uruguay”.
How the co-investment instrument works
The first step for those interested in the instrument is for investors to register through the UIH website. After evaluation and acceptance, they will be included in a registration of eligible investors.
Subsequently, startups that wish to apply for the new instrument must also communicate through the page and, to be eligible, they must meet certain requirements, such as having a committed and registered investor in accordance with step 1. Additionally, they must include Uruguay as part of its growth strategy.
The final tranche will be finalized once the investor is approved and the startup’s credentials are verified. With this application stage completed, the contracts respective and the UIH will disburse the money according to the milestones established in the agreement.
Source: Ambito
