SP Ventures, a leading Brazilian venture capital firm, is launching its third agtech fund, AgVentures III, with a goal of raising up to $100 million. The fund has secured significant backing from development finance institutions, including an $8 million investment from IDB Lab and up to $10 million from the Japan International Cooperation Agency (JICA). This initiative aims to catalyze innovation in the agricultural and food technology sectors across Latin America and the Caribbean.
Strategic Backing from Development Finance Institutions
The new fund is anchored by substantial commitments from IDB Lab, the innovation arm of the Inter-American Development Bank Group, and JICA. These investments are part of a collaborative effort to support startups addressing critical challenges in the region's agricultural value chain. The participation of these key institutions underscores the fund's focus on generating both financial returns and significant developmental impact.
Graham Macmillan, CEO of IDB Lab, highlighted the organization's commitment to fostering a sustainable, tech-driven transformation in the region's agri-food sector. This new investment deepens a collaboration that began in 2019 with IDB Lab's support for the predecessor fund, AgVentures II. The continued partnership aims to strengthen climate resilience, improve productivity, and expand opportunities for agricultural producers throughout Latin America.
JICA's involvement, framed under its MIDORI Initiative, emphasizes the region's crucial role in global food security and sustainable development. Takehiro Yasui, a Director General at JICA, noted the goal is to advance agricultural innovation while promoting collaboration with Japanese companies. This strategic investment aligns with JICA's mission to support climate action and build robust international partnerships for shared goals.
Investment Focus and Impact Thesis
AgVentures III will target investments in up to 22 early-stage startups, with typical ticket sizes ranging from $1 million to $5 million. The fund will prioritize companies developing scalable solutions in areas such as sustainable land use, food security, traceability, and environmental resilience. This focus is designed to build a more technologically advanced and environmentally responsible agricultural ecosystem across the continent.
Francisco Jardim, Managing Partner at SP Ventures, stated that the fund is anchored in the belief that Latin America is critical to the global transition toward more resilient agriculture. The firm's impact thesis is to generate social benefits by supporting technologies that democratize access to efficiency for small and medium-sized farmers. This approach ensures that innovation creates inclusive growth and empowers vulnerable populations within the agricultural sector.
The fund's core mission is to address key challenges by backing startups that deliver measurable social and environmental benefits alongside financial returns. These ventures will focus on reducing food waste, empowering producers, and enhancing the overall sustainability of the food production chain. By doing so, SP Ventures aims to foster a new generation of companies capable of driving long-term positive change.
A Catalyst for Latin American Agtech
The launch of AgVentures III comes at a pivotal moment for Latin America, a region characterized by vast agricultural output and an accelerating adoption of technology. This environment presents significant opportunities for innovative solutions that can enhance productivity, profitability, and sustainability for farmers. The fund is strategically positioned to capitalize on this growing demand for technological advancement in the agricultural sector.
Beyond providing capital, SP Ventures is committed to offering active mentorship and strategic support to its portfolio companies. This hands-on approach helps startups scale their operations, navigate market challenges, and expand into new territories. This comprehensive support system is crucial for fostering growth and ensuring the long-term success of emerging agtech ventures in the region.
The establishment of the AgVentures III fund, with strong institutional backing from IDB Lab and JICA, represents a major milestone for the Latin American agtech landscape. By channeling significant capital and strategic expertise into the sector, the fund is poised to accelerate the development of transformative solutions. Ultimately, this initiative will contribute to building a more resilient, sustainable, and technologically advanced agricultural ecosystem for the entire region.