Four projects signed during the IDB Lab event focused on innovation will boost the entrepreneurial ecosystem of the Southern Cone.
By Irene Arias Hofman
The third edition of IDB Lab Forum was once again the great event for entrepreneurial innovation. For two days, leaders, innovators and entrepreneurs from all over Latin America and the Caribbean learned about and contributed innovative solutions to address the economic and social challenges of our region. This annual event, which was held for the first time in the Southern Cone, in Buenos Aires, creates an environment that facilitates learning from the hand of its protagonists disruptive ideas to make our region a more prosperous and resilient place, participate in workshops, and access networking opportunities, allowing the connection between startups and potential investors, which is crucial to attract funding and strategic support for entrepreneurship. At IDB Lab, we seek to strengthen the innovation and entrepreneurship ecosystem in Latin America and the Caribbean and to accelerate the growth of sectors that can transform local economies and improve lives.
The four projects that were signed during IDB Lab Forum between IDB Lab and our executing partners are a good example of entrepreneurial and technological initiatives to generate climate action, boost productivity and achieve greater inclusion. Three Argentine and one Chilean solutions from entrepreneurs in our region seek to participate in the development of Latin America and the Caribbean, making their way with innovation and technology.
Food waste, for example, is a critical global problem. One-third of the produced food is lost annually, according to FAO, resulting not only in huge losses, but also contributing to 8%-10% of greenhouse gas emissions. The solutions available on the market to prevent the spoilage of fruits and vegetables include components that have a harmful impact on human health and the environment. Nat4Bio is an Argentine venture that extends the shelf life of fresh fruit with fully edible natural coatings that protect it from spoilage. During IDB Lab Forum, IDB Lab signed an agreement to invest $830,000 that will cover 46% of the total cost of the project and will allow Nat4Bio to make strategic investments to bring its prototypes to a commercial stage, reach the break-even point and raise its first round of financing. The project will directly impact 1,000 producer firms and more than 170,000 fruit growers and farm workers. We will work with multipliers to ensure that the benefits of bio-based solutions reach small producers and seasonal workers operating in vulnerable labor conditions, thus promoting inclusion and equity in the sector.
To continue with FAO, the organization states that 14% of agricultural products are lost between the harvest and the supermarket shelf. The agribusiness sector is key to food security and the transition to a more sustainable economy, but it has very low levels of technification, transparency and efficiency along the production chain. An Argentine agtech has designed a technology based on artificial intelligence for varietal and physical quality recognition of agricultural raw materials. Zoomagri's solution determines the results in two minutes so that the actors in this chain can recognize the varietals and quality of the grains before unloading them from the trucks, and based on this, make industrial, commercial and storage decisions in real time to make their operation more efficient. To expand this solution in Argentina and generate a positive impact and beneficiaries along the agrifood chain, IDB Lab will provide up to US $2 million in a loan from the Social Entrepreneurship Program (SEP).
To support the agri-biotech entrepreneurial ecosystem, we need new liasons between traditional investors and startups that favor financing for innovation. Other agreements signed during IDB Lab Forum aims to contribute to the development and scale of the agri-biotechnology entrepreneurial ecosystem in the province of Santa Fe, Argentina, by facilitating access to financing for startups in this sector. This project, which will be executed by the Bolsa de Comercio de Rosario (Rosario Stock Exchange) has a total cost of $1.8 million, 50% of which will be provided by IDB Lab through a non-reimbursable technical cooperation. This project will benefit Argentine agri-biotechnology startups, particularly those in the province of Santa Fe that are in the scaling-up stage.
The fourth project signed seeks to address the challenge of gender inclusion and diversity in the business environment, which is aggravated by the lack of data to measure gaps and implement effective diversity and inclusion initiatives. IDB Lab will support RankMi, a Chilean integrated human resources technology solution aimed at improving the human capital management of companies, helping it, in addition, to implement analytical tools to support diversity, equity and inclusion initiatives of its clients. RankMi is proceeding with a Series A extension where IDB Lab will participate with $3 million to enable it to reach 3,000 client companies and be present in 2027 in five Latin American countries, benefiting large and medium-sized companies in our region and, indirectly, their employees, particularly women and minorities.
If we want to promote development in Latin America and the Caribbean, we must create the right environment for innovative initiatives that seek to start up, break through, scale and benefit not only our fellow citizens but globally. That is the purpose of IDB Lab Forum which, for the third consecutive year, has become a hotbed of ideas, knowledge transmission and a warp of connections between those who, with innovation and technology, want to make our region a better place. See you next year at IDB Lab Forum!