WASHINGTON — IDB Lab, the innovation and venture arm of the Inter-American Development Bank Group (IDB Group), announced an investment of $8 million in the AgVentures III Fund managed by SP Ventures in collaboration with the Japan International Cooperation Agency (JICA) 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. It will focus on six key fronts: sustainable and regenerative land use, food security, traceability, reducing food waste, producer empowerment and inclusion, and environmental resilience and action. SP Ventures' impact thesis is to generate social benefits for vulnerable populations by supporting technologies that democratize access to productivity and efficiency for small- and medium-sized farmers.
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, after thoroughly analyzing aspects such as the management team, track record, investment thesis, fund terms and governance, and potential impact on the region's development.
“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. We support solutions that strengthen climate resilience, improve agricultural productivity, and expand opportunities for producers, backing startups that deliver measurable impact across the region,” 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.
“We are honored to join AgVentures III Fund alongside SP Ventures and our partners, supporting innovative agricultural startups across Latin America and the Caribbean, the region which plays a crucial role for the global food security. By fostering technologies that enhance climate resilience, productivity, and sustainability, we aim to advance agricultural innovation and empower farmers while promoting collaboration with Japanese companies,” said Takehiro Yasui, Director General of Private Sector Partnership and Finance Department of JICA.
“AgVentures III is anchored in the conviction that Latin America plays a critical role in global food systems and in the transition toward more resilient and sustainable agriculture. Our investment thesis focuses on technologies deeply connected to the productive sector, inside and outside the farm gate, with the potential to scale across the region and generate long term economic and environmental impact. Partnering with IDB Lab and JICA brings institutional strength, regional reach, and long-term alignment, enhancing our ability to support entrepreneurs building transformative solutions for Latin America and the Caribbean,” said Francisco Jardim, Managing Partner at SP Ventures.
The investment reflects IDB Lab’s ongoing commitment to supporting innovation across Latin America and the Caribbean.
About IDB Lab
IDB Lab is the innovation and venture arm of the Inter-American Development Bank Group. We focus on entrepreneurship and technology to cocreate solutions for development challenges and spark new industries for growth in Latin America and the Caribbean. IDB Lab supports high-impact startups and the innovation ecosystems they need to thrive through flexible financing, practical knowledge, and global connections. www.idblab.org
About JICA
JICA (Japan International Cooperation Agency) is the governmental agency responsible for implementing Japan’s Development Cooperation. Its vision is to take the lead in forging bonds of trust across the world, aspiring for a free, peaceful and prosperous world where people can hope for a better future and explore their diverse potentials. JICA has been implementing its operations in 145 countries and regions across the globe, supporting socio-economic development, recovery, and economic stability of developing regions in order to deliver development impact by aligning with the SDGs, the Paris Climate Agreement, etc., through various products such as finance and investment on a sovereign and non-sovereign basis, grant aid, technical cooperation, and dispatching of volunteers. For more information, please find us at https://www.jica.go.jp/english/.
About SP Ventures
SP Ventures is a leading venture capital firm in Latin America focused on AgFood-ClimateTech. Founded in 2008, the firm invests in startups that strengthen the climate resilience of the agrifood value chain, supporting sustainable solutions that increase productivity, reduce losses, and generate positive environmental and social impact. With offices in São Paulo and Mexico City, SP Ventures has invested in over 58 companies across Brazil, Argentina, and Mexico. With more than three active funds and over US$100 million under management, the firm operates at the intersection of food security and climate change, driving innovation to build more sustainable, resilient, and competitive agricultural systems in the region. www.spventures.com.br