Why We Invested in ReForest Latam | Unlocking ecosystem restoration at scale through biotech innovation and precision technology

The ReForest Latam team alongside its drone-based restoration technology in Patagonia. 

Deforestation and forest degradation have real and tangible impacts on the lives of vulnerable communities. Healthy forests support the livelihoods of 1.6 billion people globally, one billion of whom are among the world’s poorest. Restoring degraded land at scale is one of the biggest climate opportunities of our time – yet these areas are often hard and expensive to reach.

Our investment in ReForest Latam aligns with our Climate-Smart Technologies thesis category as a nature-based solution that enables ecosystem restoration and supports climate disaster resilience for rural communities and smallholder farmers across Latin America.

ReForest conducts field testing and ecosystem assessments in degraded landscapes targeted for restoration. 

THE MARKET NEED

Traditional reforestation is expensive, slow, and hard to scale. It relies on establishing nurseries, manual planting, and labor-intensive processes that often cost thousands of dollars per hectare. Additionally, these methods are simply not viable in “hard-to-reach” areas such as mountainous terrain, remote watersheds, or post-fire landscapes where road access is limited or non-existent.  

This restoration gap has profound implications for climate resilience. Consider a smallholder farming community in the foothills of the Andes. For decades, logging and cattle ranching have destroyed the upstream forests that used to control water flows. Without these natural buffers, the community now faces increased flooding during rainy seasons, water scarcity during droughts, and soil erosion that threatens agricultural productivity. 

Meanwhile, demand for nature-based solutions is accelerating, driven by corporate net-zero commitments, the growth of carbon and biodiversity markets, and stronger regulatory frameworks.  

ReForest's drone technology disperses proprietary seed capsules across hard-to-reach restoration sites. 

THE SOLUTION

ReForest Latam (“ReForest”) is addressing this critical gap through an integrated climate-tech platform that combines: Biotech: proprietary seed capsules (“iSeeds") containing native seeds optimized with microorganisms and biostimulants that improve germination and survival rates in challenging environments. AI and geospatial analysis: to identify the optimal species mix for each microsite, maximizing restoration success while minimizing costs. Drone-based deployment: enabling rapid, cost-efficient aerial seeding in remote areas. Importantly, ReForest does not operate in isolation. It acts as a technology enabler within the restoration value chain, working alongside NGOs, governments, and carbon developers who lead project design and community engagement. ReForest has 14 active pilots across Argentina, Bolivia, and Brazil, working with partners including The Nature Conservancy, Land Innovation Fund, and conservation foundations. Additionally, early field data shows meaningfully higher germination and establishment rates compared to untreated seeds. At the same time, we recognize that this model requires strong partner selection and oversight. As part of our investment, we will work with ReForest to strengthen their approach to working with local communities, ensuring all stakeholders are involved and avoid unintended harm.

Technology-enabled restoration helps expand ecosystem recovery across landscapes that are difficult to access using traditional methods. 

"Latin America is losing its forests faster than we can replant them with traditional methods. We founded ReForest because we believe technology can close that gap — but only if it's designed for real conditions on the ground: remote terrain, resource constraints, and ecosystems degraded for decades. We are building the technology to make restoration viable at scale — not just for carbon markets, but for the communities whose livelihoods depend on healthy ecosystems. Mercy Corps Ventures brings more than capital. They bring deep expertise working at the intersection of climate resilience and community development — and a shared conviction that the two are inseparable."

Damián Rivadeneira, Co-Founder & CEO of ReForest Latam

We're excited to support ReForest Latam as they scale from pilots to multi-year contracts and prove that technology-enabled restoration can work at the scale climate adaptation demands. As ReForest expands across Latin America, they're rebuilding the natural infrastructure that smallholder farmers and rural communities depend on for water security, soil stability, and protection from climate shocks.

Stay tuned for more updates on our portfolio here.