IDB Lab Launches a Call for Proposals for Venture Capital Funds

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.