CARIBEquity Facility: Innovation Ecosystem Challenge Fund

Despite this potential associated with promoting a vibrant start-up ecosystem that will support job creation in technology driven-innovation and entrepreneurship, several bottlenecks impede the ability of innovation support agencies to deliver sufficient support to the most promising start-up and scale-up companies in the Caribbean. Among these challenges are: (i) shortage of qualified mentors, advisors, and experts with relevant industry experience and networks, limiting the quality and depth of support that startups receive; (ii) highly fragmented and ad hoc service offerings that are not commercially structured to see a return on investment and promote financial sustainability, which in turn constrains the capacity of innovation support agencies to provide comprehensive support to entrepreneurs. This also includes challenges in securing operational funding, as well as difficulties in accessing capital for startups within the region; and, (iii) fragmentation of innovation ecosystems and the lack of connectedness among key actors (both public and private).

Thus for the private sector to innovate, thrive and expand, there is therefore a greater need for:

• Stronger innovation support structures, which enhances the quality and rigor of both generalized incubation / acceleration support, as well as specialized support in specific sectors or technologies.
• Enhanced financial sustainability models, that can support the long-term viability of innovation support agencies in the Caribbean. At present, organizations often rely on a narrow range of revenue streams to support their operations and continue providing valuable services to startups.
• Greater interconnectedness within the ecosystem, where key actors providing agile support to entrepreneurs require access to technical and financial resources and know-how to build their institutional capacity, but also to broker strategic connections and foster networks that can support startups in their cohorts to address the multiple challenges they face in the initial phases of their businesses.

This Call for Proposals (CfP) is aligned with the objectives of the CARIBEquity Facility as well as the commitment of its donors to consolidate a Caribbean investment ecosystem for inclusive private sector innovation and growth.

What are they looking for?

• The CARIBEquity Facility, under its ‘Innovation Ecosystem Challenge Fund’, is looking to support innovation ecosystem actors such as accelerators, incubators, academia, and other agencies supporting innovation (e.g., impact hubs).
• Proposals are invited against the following two (2) categories:
  • Category 1: Promoting Generalized and Specialized Incubation / Acceleration Services & Sustainable Business Models
    • This category offers technical assistance support for accelerators, incubators, and other agencies supporting innovation (e.g., impact hubs) interested in:
      • Enhancing the quality and rigor of generalized incubation / acceleration support provided at the national and/or regional level;
      • Developing and delivering specialized incubation and acceleration services, with a focus on specific sectors and technologies aligned with the priority sectors of CARIBEquity (see Annex I of the Guidelines for further details on CARIBEquity priority areas); and,
      • Developing and deploying sustainable business models that provide more diverse service offerings to the innovation ecosystem beyond traditional incubation / acceleration services.
    • Some examples of the types of incubation / acceleration services as well as sustainable business models that will be supported under this track include:
      • Generalized Incubation / Acceleration Support
      • Specialized Incubation / Acceleration Support (e.g., sector-specific incubation / acceleration, technology-specific incubation / acceleration)
      • Sustainable Business Model Development (via New Service Delivery)
  • Category 2: Supporting Implementation of New Partnership Models for Innovation
    • This category offers technical assistance support for universities and other academic institutions interested in:
      • Promoting innovation and entrepreneurship among students and faculty members and becoming hubs of knowledge creation and dissemination;
      • Expanding cooperation between innovation players within the innovation ecosystem, including students, faculty members, researchers, industry professionals, and other stakeholders to transfer cutting-edge research and expertise from academic settings to practical applications; and,
      • Supporting the commercialization of research outcomes and incentivizing researchers to explore the commercial potential of their findings and inventions through technology transfer offices, patent licensing, and industry partnerships.
    • Some examples of the new models of partnership for innovation that will be supported under this track include:
      • Creation of Entrepreneurial Labs within Universities
      • Catalyzing Multi-Stakeholder “Triple Helix” Collaboration
      • Innovation Commercialization and Technology Transfer

Who can submit a proposal?

• Incubators, accelerators, academia, and other agencies supporting innovation.
• If your organization is legally registered in one of these 15 target countries where the project will be implemented, you can submit your proposal.
• 15 target countries:  Antigua and Barbuda, The Bahamas, Barbados, Belize, the Commonwealth of Dominica, the Dominican Republic, Grenada, Guyana, Haiti, Jamaica, Saint Lucia, St. Kitts and Nevis, St. Vincent and the Grenadines, Suriname, and Trinidad and Tobago.

For more information, visit Inter-American Development Bank Group.