Over 200 Innovative Start-Ups to Benefit from WB’s USD50m Investment

تم نشره في Fri 23 June / Jun 2017. 11:00 PM
  • The World Bank building in Washington, USA - (Archives)

AMMAN —AlGhad— The World Bank (WB) announced a new project, Saturday, to support entrepreneurship and start-ups in Jordan, via an Early Stage SMEs Financing platform, at USD50 million, aimed to fund the establishment of over 200 start-ups.

The WB’s investment will be complemented by USD49 million in co-financing from the Central Bank of Jordan (CBJ), bringing the total working capital of the ISSF to USD99 million.

Additionally, the allocation will be managed by a private sector managed funding facility, according to the World Bank, and should help launch the "Innovative Start-ups and SMEs Fund" (ISSF).

"One of the main reasons that discourages an investor from taking a stake in an early-stage company is the high transaction costs incurred to help make a young innovative company successful once it receives capital", said Randa Akeel, Senior Financial Sector Economist and Task Team Leader.

"Evidence from similar World Bank projects in the region and elsewhere has shown that private investors can be attracted to contribute capital to companies that are at an earlier stage if they can share the risk and expand their portfolio", she added.