CHALLENGE:
ORANGE INNOVATION

Thank you for participating in the challenge. We are evaluating the proposals and will be sharing the results soon. Follow us on our social channels of IDB Lab and Demand Solutions.

By Inter-American Development Bank (IDB)

Closed August 1, 2019

WHAT ARE WE LOOKING FOR?

The Inter-American Development Bank (IDB), through its innovation laboratory of the IDB Group (IDB Lab) and its Innovation and Creativity Division (ICD) through the DEMAND SOLUTIONS initiative, seeks to identify business models to boost the Orange Economy.

The challenge seeks to identify business models that use cutting-edge technologies to support their implementation in the 9 target countries: Belize, Costa Rica, El Salvador, Guatemala, Haiti, Honduras, Nicaragua, Panama and the Dominican Republic. Entities from the 48 member countries of the IDB can participate.

  1. They introduce innovations to the defined subsector of creative and cultural industries.
  2. They use cutting-edge technologies.
  3. They show that they are financially sustainable.
  4. They have economic and social impact.
  5. They have a legal constitution registered in the target country. (Those entities located in other countries can only submit proposals if they do so together with an entity registered in one of the 9 target countries.)

WHAT SUBSECTORS OF THE ORANGE ECONOMY ARE WE LOOKING FOR?

  1. Audiovisual, digital arts, animation, and video games.
  2. Multimedia applied to the publishing industry.
  3. Support services for digital content.
  4. Film and music industry.
  5. Fashion, design, tourism, cultural heritage, and gastronomy, as long as the solution is a technological one.

WHAT DOES THE PRIZE CONSIST OF?

The prize consists of the pre-selection of proposals that will be considered by IDB Lab to receive financing. The amount of the financing is from $ 150,000 to $ 500,000 depending on the categories in which it applies (grant or innovation prototypes). As part of the prize a representative of the preselected entities will be able to travel to FOROMIC to present the proposal.

WHO CAN PRESENT PROPOSALS?

Proposals may be submitted by entities located in the 48 member countries of the IDB. These entities include innovators, entrepreneurs, startups, NGOs, companies, academic institutions, research institutions, social enterprises, public innovation agencies or similar entities with specialization and knowledge in the development of business models in the cultural and creative industries, based on technology.

TIMELINE*

* Dates are approximate and subject to revision.

  • Launch:

    May 23, 2019

  • Final submission deadline:

    July 31, 2019 (11:59pm EST)

  • Finalists will be contacted in:

    September, 2019

  • Finalists present their proposal in FOROMIC:

    October 30 - Novembrer 1, 2019

Applicants can present their proposals under “Grant” or “Innovation Prototype”:

  1. Grant (nonreimbursable financing)
    • This type of financing is offered generally to NGOs, nonprofit organizations, or companies that implement innovative models with limited earning potential but with clear benefits in terms of inclusion and employment and business opportunities.
    • Range: US$150,000 – US$500,000
    • Counterpart funds: 50% of the total budget, half in cash and half in kind (applicant organization 50% = 25% cash and 25% in kind)
    • Expenses that cannot be funded with this mechanism: Purchase of land, construction of infrastructure, and in the case of equipment purchase, software or other products, software or other products, as long as they do not use more than between 10 and 25% of the financing from IDB Lab. IDB Lab does not cover overhead, and there are some restrictions on financing administrative costs.
    • Implementation period: Between 12 and 36 months, depending on the case.
    • Documents: Present two letters of recommendation, one from an outside collaborator or client who can vouch for the work, and another from an organization or institution that knows the work that has been done and its achievements. The letters of recommendation cannot be submitted by family members or founding or co-founding members of the applicant organization. (Diplomas, invitations to events, or letters of recommendation for other contests will not be accepted.)
    • Pitch: Present a video pitch of a maximum length of 2 minutes, explaining the model (the development problem that it addresses, and the innovative solution proposed, as well as the composition of the implementation team). The video link must not be protected. If the video cannot be seen, the application will be disqualified.
    • The representatives of the selected entities must be over 18 years of age by June 8, 2019, and must be residents of one of the 48 IDB member countries, with a local partner for the prototype if he or she is not a resident of one of those countries. Entities that have participated previously in a Demand Solutions event are eligible.
  2. Innovation Prototype (nonreimbursable resources)
    • This type of financing will be granted to businesses with high impact, entities with innovations based on disruptive technologies, and new business models. The model of a prototype must be replicable or scalable as long as it is innovative in the local market where it will be implemented. Nonreimbursable financing is offered generally to NGOs, nonprofit organizations, or companies/startups that implement innovative models with limited ability to generate income but that have clear benefits in terms of inclusion and generation of business and employment opportunities.
    • Range: A maximum of US$150,000 to develop and test the prototype.
    • Counterpart resources: 20% of the total budget, half in cash and half in kind (applicant organization 20% = 10% cash + 10% in kind).
    • Allowable expenses under this modality: Capital expenditures (such as equipment, software, and other products), as well as working capital.
    • Expenses that won’t be financed: IDB Lab does not cover overhead and there are restrictions on financing administrative costs.
    • Implementation period: Maximum of 18 months.
    • Documents: Present two letters of recommendation: one from an outside collaborator or client, who can vouch for the work and another one from an organization or institution that knows the work that has been done and its achievements. The letters of recommendation cannot be from family members or founding or cofounding members of the applicant organization. (Diplomas, invitations to events, or letters of recommendation for other contests will not be accepted.)
    • Pitch: Present a video pitch of a maximum length of 2 minutes, explaining the model (the development problem that it addresses, and the innovative solution proposed, as well as the composition of the implementation team). The video link must not be protected. If the video cannot be seen, the application will be disqualified.
    • The representatives of the entities selected must be over 18 years of age by June 8, 2019, and must be residents of one of the 48 IDB member countries, with a local partner for the prototype if he or she is not a resident of one of those countries. Businesses that have participated before in a Demand Solutions event are eligible.

Proposals will be evaluated based on the following criteria:

  1. Use of disruptive technologies (15%).
  2. Innovation of the model (15%).
  3. Potential for scalability (20%).
  4. Financial sustainability for the next 3-5 years (20%).
  5. Capacity of the applicant organization and strategic partners (10%).
  6. Viability of execution, and risks (5%).
  7. Results and impact (15%).

The selection process will have the following phases. The IDB reserves the right to modify this process by modifying, adding, or eliminating phases.

Phase I

After completing the application on the online platform, an IDB Group technical team will review, analyze, and pre-select proposals.

Phase II

Those proposals that are pre-selected will be analyzed by a panel of judges consisting of subject matter experts and an IDB Group technical team. If necessary, the panel of judges will interview the pre-selected entities.

Phase III

IDB Lab will select proposals according to the evaluation criteria. Once they have reached agreement on how to implement the model, a technical team from IDB Lab will offer support to the entities selected to initiate the design of the model (which includes developing a project plan and other documents necessary to request official internal approval of the IDB). This process may last up to six months, depending on the maturity of the model and the implementation capacity of the entities selected, among other factors. Please note that final approval is subject to the internal procedures of the IDB, with the understanding that for a project to be selected to receive IDB funds, it must have been approved by all those directly involved in the IDB and IDB Lab approval process.
Likewise, and subject to obtaining all the requisite authorizations and approvals, including, but not limited to, internal approvals from the IDB Lab and the IDB, the entities selected must sign a legal agreement that sets forth how the financial resources of the IDB Lab and the counterpart resources will be used to implement the model.

The guidelines in French are available here.

For questions email:

ORGANIZERS

IDB Lab

IDB Lab is the innovation laboratory of the IDB Group, the leading source of development finance and know-how for improving lives in Latin America and the Caribbean (LAC).

IDB Lab mobilizes resources to develop innovative projects and early stage ventures with a potential for impact and great scale, benefiting populations that are vulnerable due to economic, social, or environmental factors.

Since 1993 IDB Lab has approved more than US$ 2 billion in projects deployed across 26 LAC countries.

As of October 29, 2018, IDB Lab is the new identity of the Multilateral Investment Fund (MIF). www.bidlab.org

The Knowledge, Innovation and Communication Sector (KIC)

The Knowledge, Innovation and Communication Sector (KIC) promotes ideas and strengthens capacities to position the IDB Group as a preferential partner for development in Latin America and the Caribbean.

In the area of knowledge, KIC puts at the Bank’s disposal the latest learning products and opportunities to strengthen training of its own staff and of its operational partners. It also supports knowledge generation through publications, databases and open source software and blogs to make the IDB a sectoral point of reference and create communities of practice.

In the frontier of innovation, KIC offers experiences, networks, methodologies and tools to help the Bank’s staff build capacity in this field and provide new solutions to pending development problems.

In the area of communication, KIC focuses on positioning the IDB brand and on giving visibility to projects, events, knowledge products and institution’s initiatives, boosting the use of traditional and social media and incorporating storytelling techniques. The dissemination efforts rely on an understanding of the needs of the audience and the region and on a disruptive use of data and technology.