The Inter-American Development Bank (IDB) will contribute US $ 3 million to the development of science-based ventures in Argentina. It will be done through investment in the Cites I financial trust. The new investment vehicle is a part of the projects that the national government is preparing together with the IDB. It will be implemented through the MIF (Multilateral Investment Fund), the innovation laboratory of the multilateral organization.
The objective capitalization of the trust is US $ 24 million and the intention according to the executive summary of the project to which Télam agreed, is to support the company building process and invest in up to 32 startups in the early stages.
The project includes supporting companies based on disruptive technologies, with solid intellectual property and opportunities for global expansion. Companies from various areas such as medical technology, technologies for agriculture, agro-industry and food, artificial intelligence and renewable energy that are capable of addressing social and environmental problems in a sustainable manner will be eligible.
Cites supports scientific and technological entrepreneurs from all over the country since 2014 in their headquarters in Sunchales (Santa Fe), Bariloche (Río Negro) and Buenos Aires. For the MIF, the investment in Cites I is innovative and strategic, mainly because it is one of the first investment vehicles not only in Argentina but also in Latin America and the Caribbean with a program aimed at niche market.
The IDB documentation recalls that in Argentina the Law to Support Entrepreneurial Capital was approved in 2017 to favor high-impact projects with a scientific-technological profile. While numerous universities and research centers have been registering incipient advances through accelerators and other structures that encourage the creation of startups .
The agency recognizes high risk as an investment in the sector. Although it highlights its having a high return potential, based on the disruption of its technologies and potential scale as well as social and economic impact.
The project is relevant because of the enormous opportunities for learning and the potential demonstration effect in the rest of the region. It will provide smart capital to startups, accompanying them in their process of growth and scale, concludes the IDB.