FAQ

Participation requirements
Selection of companies
Program
Financial support
01

What types of startups are being sought for the program?

Fintechs, Agtechs, or EdTechs with financial/agricultural components.

02

What stage should the startup be in?

At least the seed stage. Solutions at the ideation, research, or pre-seed stage are not eligible.

03

What is expected of my startup when participating in the program?

We expect commitment and participation of at least one of the founders throughout the program. Furthermore, your startup must use the financial support received to adapt its products or services to the needs of financial institutions and/or producer organizations in rural areas. For this, your startup must have a clear path for using the grant, desired objectives, and an implementation plan during the eight-month program.

04

Do I need to be present in any of the 6 countries during the program?

This is a remote program, so it is not essential to be present in any of the countries. However, the startup must have operations or be willing to establish operations in one of the project countries, demonstrating a long-term interest in the country through a registered company, a local office, or other types of permanent presence.

05

If my startup isn’t serving people in rural areas, can it participate in the program?

Yes! Your startup can participate in the program if it has a solution that can be adapted to producer clients or clientele in rural areas and has a genuine interest in commercial expansion into this target population. Any startup that can solve any of the current challenges in the agricultural sector, including challenges faced by agroecological producers in any of the participating countries, can apply to the program.

06

Do we need a company (legal entity) in any of the program countries to participate?

Yes, the program is designed to encourage startups that have an established company in the country for which they are applying within the Innovatech program to show that they have a long-term interest in this country. For this reason it is essential that your startup has an established legal entity at the time of starting the mentoring program. This legal entity can be established through a business partner in the country as long as it can demonstrate experience and/or a deep interest in a long-term operation.

01

Until when will the call for applications be open?

The Innovatech program is divided into three rounds, each focusing on different countries, resulting in three application rounds:

Round 1: Guatemala and Honduras

• Application dates: September 17 – November 10, 2024

02

How many startups will participate in Innovatech?

Only 15 startups (2-3 per country) will have the opportunity to join the program. We expect the selection process to be highly competitive, so each applicant startup must propose a plan to demonstrate that its products and/or services have the potential to meet the needs of rural areas in the program countries.

03

How do I apply for my startup?

Startups interested in participating in the Innovatech program must complete the application form available on our website. This form is designed to gather detailed information about the solution offered by the startup, the team, financial situation, general context, market adaptability, and other relevant aspects. The objective is to gain a deep understanding of each startup to assess its suitability and potential for the program.

04

How will the startups be selected for the program?

The selection of startups will be carried out by a committee consisting of sector experts, along with representatives from IFAD and the German Sparkassenstiftung. The finalist startups will be evaluated through a pitch round and a due diligence process.

05

Will the startups that are not selected be notified?

Yes. All startups that apply will receive a notification regarding their selection or non-selection for Innovatech 2.0.

01

What are the program dates?

The program will have three different rounds, and each round will have a pilot phase and a scaling phase with a total duration of 8 months.

Round 1: Guatemala and Honduras:

• Pilot and scaling phase: February 1 – September 31, 2025

Round 2: Bangladesh and Bolivia

• Pilot and scaling phase: August 1, 2025 – March 31, 2026

Round 3: El Salvador and Peru

• Pilot and scaling phase: August 1, 2025 – March 31, 2026

02

How does the program work?

Innovatech will provide selected startups with support through weekly work sessions with a team of sector experts who will closely monitor goals and objectives, as well as provide technical support. Startups will be part of a bootcamp with mentorships and keynotes delivered by guest mentors familiar with rural development and financial challenges in the agricultural sector. Additionally, during the program’s first weeks, participating startups will identify the specific needs of end users by developing a pilot product with the project’s partners.

Each startup aims to positively impact at least 23 producer organizations and/or financial institutions with its technological solution, each consisting of approximately 35 people, averaging around 805 people in total per startup.

For your startup, this is a great opportunity to develop new partnerships with the rural sector and expand commercially to an underserved client segment in the technological aspect.

03

How many weekly hours do I need to commit to the program?

Your startup must participate in collaborative sessions with your mentors and with producer organizations and/or financial institutions and dedicate enough time to develop activities related to Innovatech. This will also depend on the solutions developed by each startup. Financial support will be released during the program and will be subject to visible commitment and progress by participating startups.

04

Does the program include in-person events, or is it entirely virtual?

The Innovatech program is primarily conducted virtually, allowing your startup to participate from any location. However, in-person events may be organized and will be communicated to participants in advance. Additionally, field trips to meet and collaborate with rural organizations may be essential for the program’s success.

05

If my startup has already participated in a previous version of Innovatech, can I apply?

Startups that have already participated in Innovatech 1.0 will not be considered.

01

What is the amount of money each startup will receive?

The equity-free grant is up to USD 100,000 for each startup. The amount of the grant may vary from startup to startup, and the total will be defined during the selection process based on the amount requested by the startup, its grant usage plan, size, business plan, scope of its solution, etc.

02

How will my startup receive financial support if selected?

The defined equity-free grant will be delivered to each participating startup through different transactions into an exclusive account for managing those funds. The release of financial support will be subject to the constant and visible commitment of the participating startups, as well as their fulfillment of goals previously established together.

03

Does my startup have to pay taxes on the financial support?

The financial support is part of a donation from IFAD. The funds will be transferred through the German Sparkassenstiftung to each startup, which will be responsible for declaring and, if applicable, paying any taxes that may be due on such support.

04

What is an “Equity Free Grant”?

Innovatech is a non-profit project, thanks to IFAD funding, it can offer this “Equity Free Grant,” where the startup does not have to give up any equity in its company in exchange for the capital received or pay any interest on the capital.

05

Is the financial support subject to audits or reviews?

Yes, the financial support provided through the Innovatech program is subject to audits and reviews. This ensures the correct use of funds and compliance with the program’s requirements and objectives.

06

How will my startup contribute the 20% co-funding?

The startup will contribute 20% of co-financing based on the amount granted. This percentage may be contributed by the startup in-cash or in-kind, through different forms that may include: direct financial resources, services offered throughout the project, materials necessary for its development or even participation in operating costs. The combination of these elements will depend on the specific needs of the project and the capacity of the startup. Example: If the grant awarded is 100,000 USD, the startup must contribute 20,000 USD.