TSUBASA Program

Innovation Laboratory of the Inter-American Development Bank GroupOutline of IDB Lab
Inter-American Development Bank Group

Government
SectorPrivateSector

Support provided in26 countries

Private Sector(Early Stage)

Improved livelihoods for the poor and vulnerable and new sustainablegrowth through private-sector-led innovation in Latin America and theCaribbean.
In addition to supporting and promoting growth engines, IDB Lab also
places focus on cross-sectoral issues such as climate change and genderequality.

▪

Year established: 1993▪

Member countries: 40 member countries (Japan is the largest donor)▪

Number of staff: Approx. 100 persons (currently 5 Japanese staff)▪

Number of partners: More than 1,500 (in Latin America and theCaribbean and beyond)

Latin
America

BelizeCosta Rica
Dominican
Republic
El Salvador
GuatemalaHaiti
Honduras
MexicoNicaragua
PanamaThe Andes

Bolivia
Colombia
Ecuador
Peru
Venezuela

The
Caribbean

Barbados
The
BahamasGuyanaJamaica
Suriname
Trinidad and Tobago

The
SouthernCone

Argentina
BrazilChile
Paraguay
UruguayCharacteristics of IDB Lab
Fostering innovation

Increasing
development impacts

Supports innovative
development
assistanceapproaches••Supports the developmentof new industries•

Promotes economic andsocial development•

Considers start-ups asimportant partners inpromoting innovation•

Climate change measuresand environmental
improvements•

Improves access toeconomic and social services
by the poor and vulnerable
groups

Improving businessscalability•

Focusing on scalability toincrease future development
impacts•

Popularization through support
from IDB and IDB Invest, andutilization by other partners isexpected in the futureSectors and Priorities

Agriculture andNatural Capital

EssentialInfrastructure
Services

Education, Talent andEmploymentHealthClimate Crisis
Gender and Diversity

Test
New Technologies
and Biz Models+Develop
Entrepreneurship
Ecosystems

FinancialInclusion

Financing: Open Innovation
Leveraging collective creativity and democratizing access to our funding.

Covid-19

LAC Ecosystem
Emergency Call

DetectPrevent

Respond

Recover

Shops 2.0

Digital Transformation

Financing
Versatility for accompanying the innovation cycle from initial stages to scale.
1Developing Ecosystem

Entrepreneurship Cycle

Late Scaling and Growth2Pre-seed- Identifying idea
- Developing andTesting Prototype+External Partners

Financing Tool Categories

Developing Ecosystem

1. Ecosystem Builder

Pre-seed

2. Prototype

Seed

3. Spark
4. VC Funds

Early Stage

3SeedDevelopingand Launching
Minimum Viable Product (MVP)

Early Scaling Stage- Growing customer base
- Reaching break-even
6

5. Direct Equity
6. Loan and Mezzanine
Financing+ Follow-on
Early Scaling Stage

Follow-on Investments

Early Stage- Creating revenue stream- Improving by iteration

Investment
Readiness

Late Scaling
and Growth

4/5*This is a simplified scheme, as the use IDB Lab’s financing products can vary according to specific client profiles, and innovation
development can take different trajectories including scaling through the public sector after any point in the cycle.

Public Policy (IDB)

Investment (IDB Invest/
Other Partners)

Outline of Technical Cooperation
Project implementation led by local implementing agencies
Innovation
Cycle

SupportScheme

2Pre-seedstage

Technicalcooperation(prototype)

Seed stage

Technicalcooperation(pilot)3

Amount ofSupport

Implement Financing byation
Counterparts
Period20% or more of
the total projectbudget<$150kWithin 18
months$250k to $700k

50% or more ofApprox. 2 tothe total project
3 yearsbudgetObjective of Funds• Prototype development• Introduction of solutions
for pilot projects• Training• Business plandevelopment• Measurement of impact• Knowledge products

Main points of consideration regarding technicalcooperation support
Focus of Additional Support by IDB Lab
Project Implementation
Structure

Development Impact

Has the project structure and implementation
arrangements been established with local
partners and other relevant parties?

Will the solution contribute to the solving ofdevelopment issues of the Latin America andCaribbean region? Is the proposed solution
effective in improving the livelihoods of thepoor and vulnerable?

Business Scalability

InnovativenessCan rapid scale-up be expectedbeyond the technical cooperationfrom IDB Lab?

Is the proposed development
approach innovative, and whatneeds to be demonstrated in orderto bring the solution to the market?

How is the project structured?
• IDB Lab finances Executing Agency based in LAC and Japanese startups will work as solution provider

Beneficiaries

Solution / Service

Technical / Digital Solution
Provider（Japanese startups）

Solution, Device,etc.

Service fees etc. ($)

Executing Agency(Partner based in LAC)

Fee ($)TC ($)All TSUBASA-related projects
are funded by Japan Special
Fund (JSF)Example of KPIs
Set KPIs that focus not only on project economics but also on development impacts▪ Improved financial access and income levels of the poor and vulnerable▪ Improved access to health care and sanitation services for the poor and vulnerable▪ The number of women taking and completing digital skills training and theirsubsequent employment rate

▪ Improved productivity through the use of digital solutions for small, medium andmicro farmers▪ Reduction of greenhouse gases
Set targets that also take into accountcontributions to the achievement of SDGs

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