Decision-making in agriculture today is shaped by factors such as irrigation algorithms, mobile credit platforms, and the development of alternative proteins that compete in mass markets. However, in Latin America and the Caribbean (LAC), these innovations remain rare within the region’s financial ecosystem.  Venture capital (VC) in agriculture in our region barely reaches 1%, which makes closing this deep funding gap the most urgent challenge for the economic resilience of our emerging markets.  

A Maturing Ecosystem, but with Work Still to Be Done

Following the market correction that began in 2022, the LAC VC ecosystem is in a stabilization phase, with annual investments ranging from $4,000 to $5,000 million for a renewed emphasis on operational efficiency and sustainable growth, according to LAVCA, the association for private equity investments in Latin America. (LAVCA, Industry Data 2026).

Even so, in Latin America and the Caribbean, capital is highly concentrated in fintech and e-commerce, which account for 63% of investments, while VC investment represents only 0.06% of regional GDP—well below the global average of 0.33%.    

The Catalytic Role of IDB Lab: Investing as an Anchor to Mobilize Others

Given this landscape, VC is an ideal mechanism for IDB Lab to support early-stage innovation with the potential to scale solutions.  

As an anchor investor, the IDB Group’s innovation and venture arm offers backing and a reputation that helps attract other investors to specialized funds.  This is the case, for example, with AgVentures II, managed by SP Ventures, and Opportunity Fund I, managed by The Yield Lab LATAM, to which IDB Lab has committed $8 million of its own resources, supplemented by $11 million from the Global Environment Facility (GEF).    

This seed capital has made it possible to structure two funds of approximately $60 million and $45 million, respectively, and in 2025, the commitment was renewed with the approval of $8 million for AgVentures III, including funds mobilized from Taiwan. With these funds, IDB Lab has indirect exposure to more than 40 agtech startups in Latin America and the Caribbean.

But our contribution goes beyond financing, as this model enables us to mobilize private capital, strengthen governance, and incorporate rigorous impact measurement practices.  

Furthermore, by diversifying risks across portfolios (and given that a limited proportion of investments generates most returns) this approach enables access to high-potential innovations and a shift from isolated projects to systemic transformations.

An Agtech Portfolio with Real Impact

Most of the agtech startups in IDB Lab’s portfolio are concentrated in Brazil and Argentina, with strong expansion into Mexico, Colombia, Chile, and Uruguay.  

Among companies that have been in the portfolio for at least two years, 68% have an average annual revenue growth rate of nearly 70%, which is a clear sign of traction and scalability potential. Furthermore, IDB Lab’s portfolio promotes inclusion: 60% of the companies have women in key executive roles.  

Agtech innovation is transforming agriculture in Latin America and the Caribbean with solutions that address specific challenges in the sector and are led by startups that generate a real impact on production chains, such as:

• Kilimo (Argentina): which uses algorithms to optimize irrigation and reduce water use, collaborating with global clients such as Google and Coca-Cola FEMSA.  
• Ucrop.IT (Argentina): which accurately digitizes the sustainable traceability of crops. 
• Heartbest (México): which brings innovative plant-based foods to the shelves of Walmart and Costco.  
• Gênica and Puna Bio (Brazil): which develop bio-inputs that restore soil health and reduce the use of agrochemicals.   
• Agrolend (Brazil), Traive (Brazil), and Verqor (México): which democratize access to credit for small and medium-sized agricultural producers.

The aggregate impact is already significant. SP Ventures’ portfolio reports reaching more than 171,000 farmers and 54 million hectares, as well as preventing the use of 786,000 metric tons of agrochemicals, while managing more than $570 million in credit volume.  

Furthermore, The Yield Lab LATAM fund expects to benefit 270,000 small and medium-sized producers, leading to increased productivity and income.  

Key Capital for Building Technological Ecosystems

When patient, catalytic capital is combined with specialized fund managers and a rigorous impact thesis, venture capital moves beyond promise to become a driver of structural change.  

In a sector like agriculture, which has historically been sidelined by traditional investment flows, data-driven solutions, financial inclusion, and biotechnology already operating on the ground, demonstrate that the strategic allocation of capital is key to building the technological environment that will protect natural resources and ensure the planet’s climate resilience. 

Our region’s agri-food systems are not only an attractive investment opportunity but also an indispensable condition for achieving sustainable and equitable regional development. Our region’s entrepreneurial ecosystem has fertile ground there to continue growing and generating real impact in Latin America and the Caribbean.