IDB Lab, the innovation and venture arm of the Inter-American Development Bank Group, has announced an $8 million investment in the AgVentures III Fund, managed by SP Ventures in collaboration with the Japan International Cooperation Agency (JICA) and other partners. The fund aims to support “agtech” and “foodtech” innovation across Latin America and the Caribbean, fostering startups that develop scalable solutions for a climate-resilient, technologically advanced, and environmentally responsible agricultural value chain.
The AgVentures III Fund plans to raise $80 million to invest in up to 22 technology startups addressing challenges in agriculture and food production. Its focus includes enhancing productivity, improving producer profitability, and ensuring sustainability across the agricultural sector. Investments will prioritize measurable social and environmental impact while delivering financial returns, with emphasis on sustainable land use, food security, traceability, reducing food waste, producer empowerment, and environmental resilience. SP Ventures’ approach targets vulnerable populations by supporting technologies that increase access to productivity tools for small- and medium-sized farmers.
IDB Lab’s investment in AgVentures III aligns with its strategy of backing venture capital funds in high-impact sectors with significant financing gaps, such as agtech, health, and biotechnology. The fund was selected from 25 candidates in IDB Lab’s 2024 Call for Venture Capital Funds, based on factors including management expertise, track record, investment thesis, fund governance, and regional development potential. Graham Macmillan, CEO of IDB Lab, highlighted that the investment supports tech-driven transformation in the agri-food sector, strengthening climate resilience, agricultural productivity, and opportunities for producers.
The funding will help SP Ventures expand regionally by connecting the fund with accelerators, co-investment opportunities, and strategic partners, providing startups with resources to scale into new markets. This initiative builds on collaboration that began in 2019, when IDB Lab invested $4 million in AgVentures II Fund. Takehiro Yasui, Director General at JICA, emphasized that the partnership supports technologies enhancing climate resilience, productivity, and sustainability while promoting collaboration with Japanese companies. Francisco Jardim, Managing Partner at SP Ventures, noted that the fund focuses on scalable technologies with potential to generate long-term economic and environmental impact across Latin America and the Caribbean.
Through this investment, IDB Lab continues to reinforce its commitment to supporting innovation and entrepreneurship in the region. SP Ventures, with offices in São Paulo and Mexico City, has invested in over 58 companies across Brazil, Argentina, and Mexico, focusing on solutions that strengthen climate resilience, increase productivity, reduce losses, and generate positive social and environmental outcomes. JICA, as Japan’s development agency, contributes global development expertise and resources to foster socio-economic growth and sustainable solutions aligned with the SDGs and the Paris Climate Agreement.
This collaboration between IDB Lab, SP Ventures, and JICA exemplifies the growing support for agtech and foodtech innovation in Latin America and the Caribbean, advancing a more sustainable, resilient, and competitive agricultural sector in the region.
