Latin America Agriculture Innovation Faces Funding Gaps and High R&D Costs

Venture capital investment in Latin American and Caribbean agriculture remains extremely limited, representing only about 0.06% of regional GDP and less than 1% of overall agri‑financing. Annual VC flows total roughly US$4‑5 billion, with most funds concentrated in fintech and e‑commerce. The Inter‑American Development Bank’s BID Lab acts as an anchor investor, committing US$8 million of its own capital and leveraging additional US$11 million from the Global Environment Facility to launch funds such as AgVentures II, Opportunity Fund I and the upcoming AgVentures III, supporting over 40 agri‑tech startups across the region.

A separate study commissioned by CropLife International found that bringing a new active ingredient for crop protection to market takes an average of 11.4 years and costs US$307 million, reflecting strict efficacy, environmental and health regulations. The report highlights the proliferation of counterfeit agro‑inputs as a risk to farmers, especially in countries like Colombia, and stresses the need for sustained investment to unlock the continent’s agricultural potential.