IDB Lab Invests $8m in AgVentures III to Scale Agtech Innovation

IDB Lab, the innovation and venture capital 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 in collaboration with the Japan International Cooperation Agency (JICA) and other partners.

The investment will support the expansion of high-impact agtech and foodtech startups across Latin America and the Caribbean, strengthening the region's agricultural productivity, climate resilience and sustainability.

$80m Fund Target to Back 22 Startups

AgVentures III aims to raise $80 million and invest in up to 22 technology-driven startups tackling some of the most pressing challenges in agriculture and food production.

These companies will develop scalable innovations designed to modernize the agricultural value chain across the region, improving:

• Productivity and efficiency

• Producer profitability

• Environmental sustainability

• Climate resilience

The fund reflects growing momentum in Latin America's agri-food innovation ecosystem, as agriculture remains one of the region's most strategic sectors for economic development and global food supply.

Focus on Social and Environmental Impact

AgVentures III will prioritize investments that generate competitive financial returns while delivering measurable social and environmental benefits.

The fund will focus on six key areas:

• Sustainable and regenerative land use

• Food security solutions

• Supply chain traceability

• Reducing food waste

• Producer empowerment and inclusion

• Environmental resilience and climate action

SP Ventures' impact thesis is centred on supporting technologies that democratize access to productivity gains for small- and medium-sized farmers, improving livelihoods for vulnerable rural communities.

IDB Lab Strengthens Regional Innovation Strategy

IDB Lab said its participation aligns with its broader strategy of supporting venture capital funds in high-impact sectors facing significant financing gaps, including agtech, biotechnology, health and education.

The fund was selected through IDB Lab's 2024 Call for Venture Capital Funds, following a competitive review of 25 investment managers. Evaluation criteria included the management team's track record, governance, fund structure, investment thesis and development impact potential.

"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.

"We support solutions that strengthen climate resilience, improve agricultural productivity, and expand opportunities for producers."

Deepening Partnership with SP Ventures and JICA

The investment also builds on IDB Lab's longstanding collaboration with SP Ventures, which began in 2019 with a $4 million investment in the AgVentures II Fund.

Through its participation, IDB Lab will help accelerate SP Ventures' regional expansion by connecting the fund with accelerators, co-investors and strategic partners to increase deal flow and support startups entering new markets.

JICA highlighted the opportunity to foster collaboration between Latin American innovators and Japanese companies.

"By fostering technologies that enhance climate resilience, productivity, and sustainability, we aim to advance agricultural innovation and empower farmers," said Takehiro Yasui, Director General of JICA's Private Sector Partnership and Finance Department.

Francisco Jardim, Managing Partner at SP Ventures, said the fund is grounded in the belief that Latin America is central to the future of global food systems.

"Partnering with IDB Lab and JICA brings institutional strength, regional reach, and long-term alignment," he said.

Supporting the Next Generation of Agri-Food Startups

The AgVentures III Fund represents a major new platform for scaling transformative agricultural technologies across Latin America and the Caribbean, supporting entrepreneurs working at and beyond the farm gate.

The investment underscores IDB Lab's continued commitment to innovation-led development, positioning agtech and foodtech as critical tools for building more resilient, inclusive and sustainable food systems.