Key Takeaways
- Global Environment Facility (GEF) Investment: The GEF has committed $6 million through the Inter-American Development Bank (IDB) to The Yield Lab Latam’s third fund, known as the Opportunity Fund.
- Investment Scope: The Opportunity Fund aims to raise $50 million and invest in 30 companies at the Seed and Series A/B stages in Latin America and the Caribbean over the next few years.
- Prominent Investors: Other notable investors include Nestlé, Grupo Bimbo, SQM, Fondo de Fondos, and IDB Lab.
- Fund’s Objective: The fund seeks to support startups that are transforming the agri-food value chain with innovative, inclusive, and disruptive technologies.
- Sustainable and Decarbonized Food Systems: The GEF views this investment as a means to promote sustainable, decarbonized food systems, aligning with climate change mitigation and adaptation goals.
GEF Joins The Yield Lab Latam’s Opportunity Fund to Boost Agri-Food Innovation in Latin America and the Caribbean
The Global Environment Facility (GEF) has announced its investment in The Yield Lab Latam’s Opportunity Fund, marking a significant step towards advancing agriculture and food technology in Latin America and the Caribbean. Through the Inter-American Development Bank (IDB), the GEF has committed $6 million to this venture capital fund, which is in the final stage of fundraising.
Investment and Fundraising Goals
The Yield Lab Latam’s Opportunity Fund is designed to invest in 30 companies at the Seed and Series A/B stages over the next few years. The fund aims to raise $50 million to support startups that are revolutionizing the agri-food value chain. The fund focuses on fostering innovation, inclusivity, transparency, and disruption within the sector.
Notable Investors
The Opportunity Fund has attracted significant investments from several high-profile organizations. These include Nestlé, the world’s largest food and beverage company; Grupo Bimbo, the largest bread producer globally; SQM, a Chilean mining company involved in health and food sectors; Fondo de Fondos, a Mexican specialized investment firm; and IDB Lab, the innovation and venture capital arm of the IDB.
Objectives and Vision
Santiago Murtagh, Managing Partner at The Yield Lab Latam, highlighted the fund’s mission to bridge the gap between the agri-food and venture capital ecosystems throughout the region. “The fund has been supported by well-known players in the innovation market and institutional investors across Latin America, promoting innovation in food technology and agriculture,” Murtagh explained.
For the GEF, this investment represents a broad opportunity to accelerate technology and local innovation aimed at sustainable and decarbonized food systems. According to an official statement on their website, the objective is to support a transition to sustainable food systems through technology-based solutions, which will help mitigate climate change and enhance adaptation and restoration efforts.
Impact on Early-Stage Companies
The regional fund is set to invest at a critical stage for early-stage companies, thereby enabling high-impact solutions that address pressing needs and barriers within the agri-food sector. Magdalena Coronel, CIO of IDB Lab, emphasized the alignment of this fund with IDB Lab’s mission to foster innovation and support transformative change in the sector. “We are excited to see the positive impact this investment will have on food systems in Latin America and the Caribbean,” Coronel stated.
Image provided by The Yield Lab LATAM
