Proposals should focus on Latin America and the Caribbean
IDB Lab, the innovation laboratory of the Inter-American Development Bank (IDB), is one of the most active venture capital (VC) fund investors in Latin America and the Caribbean (LAC), having invested in over 90 funds since 1996 and a current portfolio composed of over 50 funds. Through its fund investment activities, IDB Lab seeks to contribute to unleash the potential of innovation to generate greater development impact and social inclusion with a special focus on poor and vulnerable populations across LAC, as well as to bridge key financing gaps in countries, sectors, and business models in which there is an unsatisfied demand for investments from early-stage entrepreneurs.
To further advance this goal, IDB Lab is launching a Call for Proposals for venture capital funds with focus on Latin America and the Caribbean seeking equity financing. This call will also contribute to expand the frontiers of VC markets and increase early-stage financing in LAC.
The Call for Proposals will open February 1st, 2021. IDB Lab aims to invest in VC funds that are aligned with one of the following four approaches:
- Nascent and Emerging Ecosystems. Funds that invest primarily in nascent or emerging early-stage ecosystems such as Central America, Caribbean and selected markets in South America, such as Peru, Ecuador, Paraguay, Uruguay, and Bolivia.
- Regionalizing Funds. Funds with regional strategy, which in addition to targeting more developed early-stage ecosystems, include nascent or emerging ecosystems to promote regional integration and knowledge transfer from more mature to emerging VC market within LAC.
- Sector Specific Funds. Funds specializing in high-impact sectors with pronounced structural capital gaps resulting from unmet demand by early-stage entrepreneurs, such as Health/Biotech, Edtech/Workertech, Agtech/Foodtech and Climatetech, among others.
- Diversity Lens Investing Funds. Funds led by a diverse team in terms of ethnicity, race, and gender whose thesis are equally focused on diversity, in accordance with IDB´s Lab goal of anchoring the first LAC VC fund with such an approach.
Investment management firms with proven experience and presence in the region, interested in being considered for IDB Lab´s investment, are invited to submit proposals. More information about the opportunity, timeline, and how to apply is available via this link. Any inquiries can be directed to: VCFUNDS@iadb.org.
About the IDB
The Inter-American Development Bank is devoted to improving lives. Established in 1959, the IDB is a leading source of long-term financing for economic, social and institutional development in Latin America and the Caribbean. The IDB also conducts cutting-edge research and provides policy advice, technical assistance and training to public and private sector clients throughout the region.
About IDB Lab
IDB Lab is the innovation laboratory of the Inter-American Development Bank Group, the leading source of development, finance and know-how for improving lives in Latin America and the Caribbean. The purpose of IDB Lab is to drive innovation for inclusion in the region, by mobilizing financing, knowledge, and connections to co-create solutions capable of transforming the lives of vulnerable populations affected by economic, social or environmental factors. Since 1993, IDB Lab has approved more than US$2 billion in projects deployed across 26 LAC countries. www.idblab.org