IDB Lab, the innovation and venture arm of the Inter-American Development Bank (IDB), announced an investment of $8 million in the AgVentures III Fund managed by SP Ventures in collaboration with the Japan International Cooperation Agency and other partners to support agtech and foodtech innovation across Latin America and the Caribbean. The AgVentures III Fund aims to raise $80 million to invest in up to 22 tech startups addressing key agriculture and food production challenges.
These companies will develop innovative solutions that can be scaled up across the region for a more environmentally responsible, climate-resilient, and technologically advanced agricultural value chain, thereby enhancing productivity, producer profitability, and sustainability in the agricultural sector. AgVentures III will prioritize investments that deliver financial returns with measurable social and environmental benefits, focusing on six key fronts: sustainable and regenerative land use, food security, traceability, reducing food waste, producer empowerment and inclusion, and environmental resilience and action.
IDB Lab’s participation in AgVentures III aligns with its strategy of supporting venture capital funds focused on high-impact sectors with significant financing gaps, such as health, biotechnology, education, and agtech. IDB Lab selected the fund from among 25 investment managers in its 2024 Call for Venture Capital Funds.
“The investment in AgVentures III reflects IDB Lab’s commitment to a sustainable, tech-driven transformation of the agri-food sector in Latin America and the Caribbean,” said Graham Macmillan, CEO of IDB Lab.
Through this investment, IDB Lab will bolster SP Ventures’ regional expansion, connecting the fund with accelerators, other investment funds, and strategic partners in emerging ecosystems to increase deal flow, encourage co-investments, and provide valuable resources to startups in its portfolio seeking to expand into new markets. This operation will also deepen the collaboration that began in 2019, when IDB Lab invested $4 million in the AgVentures II Fund.
