Key Takeaways
- IDB Lab commits $8 million to the AgVentures III Fund managed by SP Ventures
- Fund aims to raise $80 million to invest in up to 22 startups
- Focus areas include regenerative agriculture, food security, traceability, and climate resilience
- Collaboration includes JICA and other institutional partners
- Investment builds on IDB Lab’s previous participation in AgVentures II
IDB Lab Commits Capital to AgVentures III Fund
IDB Lab, the innovation and venture arm of the Inter-American Development Bank Group (IDB Group), has announced an $8 million investment in the AgVentures III Fund, managed by SP Ventures. The initiative is being carried out in collaboration with the Japan International Cooperation Agency (JICA) and other partners.
The AgVentures III Fund is targeting $80 million in total capital and plans to invest in up to 22 startups focused on agriculture and food production technologies across Latin America and the Caribbean. The selected companies are expected to address challenges in productivity, sustainability, and resilience within the regional agricultural value chain.
Graham Macmillan, CEO of IDB Lab, said the investment aligns with the organization’s strategy of supporting technology-driven transformation in the agri-food sector across the region.
Investment Focus on Sustainability and Inclusion
AgVentures III will concentrate on six priority areas: sustainable and regenerative land use, food security, traceability, food waste reduction, producer inclusion, and environmental resilience. The fund’s approach includes seeking both financial returns and measurable social and environmental outcomes.
SP Ventures’ investment thesis emphasizes supporting technologies that improve access to productivity tools for small- and medium-sized farmers.
Takehiro Yasui, Director General of the Private Sector Partnership and Finance Department at JICA, said the partnership is intended to support agricultural innovation while strengthening collaboration between Latin American and Japanese stakeholders.
Continued Collaboration Between IDB Lab and SP Ventures
IDB Lab selected AgVentures III through its 2024 Call for Venture Capital Funds after reviewing 25 investment managers. Evaluation criteria included team experience, governance structure, investment strategy, and potential development impact.
This investment follows IDB Lab’s $4 million commitment to the AgVentures II Fund in 2019. Through its participation, IDB Lab aims to support SP Ventures’ regional expansion by facilitating connections with accelerators, co-investors, and strategic partners.
Francisco Jardim, Managing Partner at SP Ventures, said the partnership provides additional institutional support as the fund seeks to back startups operating across Latin America and the Caribbean.
