Technical Support for IDB Lab on Designing & Structuring a Climate-focused Fund of Funds Platform Proposal Consultant (LAB/INV)

Location: Latin America and the Caribbean

About this position

IDB Lab is the innovation and venture laboratory of the Inter-American Development Bank Group. It mobilizes financing, knowledge, and connections to support entrepreneurs in catalyzing innovation to drive inclusion in Latin America and the Caribbean (LAC). IDB Lab believes that innovation is a powerful tool that can transform this region, as it provides unprecedented opportunities to solve long-standing problems preventing vulnerable populations from improving their quality of life.

The Investment Unit (INV) at IDB Lab is the unit responsible for originating and managing the portfolio of reimbursable operations (equity and debt). INV has a systemic role of filling key funding gaps, bridging key connections in different fields (e.g., public and private), and mobilizing key ecosystem resources to support specific ventures with outstanding socioeconomic or environmental impact potential. IDB Lab adds relevant value to those ventures during their business consolidation and expansion. It fosters their impact towards solving some of the most pressing development and inclusion challenges of different sectors in LAC (Fintech, Edtech, Healthtech, Agtech/Biotech, ClimaTech, etc.).

INV is looking for a consultant to (i) support IDB Lab in designing a fund of funds platform to invest in funds with a climate thesis that will catalyze innovation for climate action across LAC for a more resilient, low-carbon, and sustainable future, aligned to the targets of COP21 Paris Agreement and the UN SDGs and (ii) prepare funding proposals for potential partners including GEF and GCF, among other investors, to raise funds for execution.

What you’ll do:

The consultancy will undertake the following key activities:

  • Market and Ecosystem Analysis, including:

    o Leading global trends: Analyze and provide an overview of leading global trends and initiatives around innovation for climate action and the investment industry that are (i) aligned to IDB Lab’s mandate and focus on innovation for inclusion, (ii) relevant to the LAC region, and (iii) aligned with GEF,GCF, and other climate related potential partner's priorities.

    o LAC opportunity analysis: Based on the above, identify core opportunities for climate action and VC funds that will help to enhance/refine IDB Lab’s proposed platform . This will include mapping of Nationally Determined Contributions (NDC) and Long-Term Strategies (LTS), vital economic sectors/industries with the most significant potential for purpose-driven climate tech innovation.

    o Catalyzing Resources: Identify leading public agencies and bilateral donors interested in the highest-risk investment tranches that could be potential investors in the platform. Define strategic entry points for collaboration based on strategic priorities and risk-reward profiles suitable to lock in mutual interest and traction.

    • Platform - Structure, Pitch Deck, and Overview including:

      The consultancy will undertake the following key activities:

      • Market and Ecosystem Analysis, including:

        o Leading global trends: Analyze and provide an overview of leading global trends and initiatives around innovation for climate action and the investment industry that are (i) aligned to IDB Lab’s mandate and focus on innovation for inclusion, (ii) relevant to the LAC region, and (iii) aligned with GEF,GCF, and other climate related potential partner's priorities.

        o LAC opportunity analysis: Based on the above, identify core opportunities for climate action and VC funds that will help to enhance/refine IDB Lab’s proposed platform . This will include mapping of Nationally Determined Contributions (NDC) and Long-Term Strategies (LTS), vital economic sectors/industries with the most significant potential for purpose-driven climate tech innovation.

        o Catalyzing Resources: Identify leading public agencies and bilateral donors interested in the highest-risk investment tranches that could be potential investors in the platform. Define strategic entry points for collaboration based on strategic priorities and risk-reward profiles suitable to lock in mutual interest and traction.

        • Platform - Structure, Pitch Deck, and Overview including:

          o Structure: Based on the above, define the platform’s objective, structure, governance, and justification of its importance with supporting evidence, and outline potential investors (public agencies and bilateral donors).

          o Project Documentation: Prepare strategic documents related to the project approval.

          o Overview of the Proposal: a 2-page summary to enable early engagement and feedback with potential climate partners such as GEF and GCF.

          o Pitch Deck: Develop a versatile complementary Pitch Deck to facilitate engagement with institutional investors, and potential partners Nationally Designated Authorities (NDAs)[1] and obtain co-financing commitments from public agencies and bilateral donors for scale.

          o Other documents: Prepare other documentation related to additional institutional investors requirements.

          • GEF Project Identification Form[1]: Prepare and complete the latest GEF Project Identification Form using as input the previous bullets and including context and baseline. Related documents or annexes to this document must be prepared as part of the deliverables.
          • GCF Concept Note: Prepare and complete the latest GCF Concept Note[2], using as input the previous bullets and including context and baseline; description; expected performance against GCF investment criteria; engagement among the GCF’s NDAs Accredited Entities[1], and other relevant stakeholders; indicative financing/cost information; brief rationale for GCF involvement and exit strategy; sustainability and replicability of the project; risk analysis; multi-stakeholder engagement; and other supporting documents for the concept note required by the GCF.

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