IsDB Transform Fund: Access $300,000 to $1 Million for Science and Technology Ventures in Islamic Development Bank Member Countries

The Islamic Development Bank’s Transform Fund provides $300,000 to $1 million in blended finance to help science and technology ventures in IsDB member countries commercialize innovations that address Sustainable Development Goal challenges. If you’re a startup, SME, university spinout, or research center with technology that can improve food security, healthcare, climate resilience, or other development priorities, this fund can provide the capital and support you need to scale from pilot to market.

Transform Fund isn’t traditional grant funding or pure venture capital—it’s blended finance that combines grants, concessional loans, and potentially equity investment, structured to match your venture’s stage and needs. The fund specifically targets the “valley of death” where promising technologies struggle to find financing to move from proof-of-concept to commercial deployment. IsDB provides not just money but also technical assistance, mentorship, connections to markets and partners, and support navigating regulatory and business challenges.

What makes Transform Fund particularly valuable is its focus on science and technology solutions to development challenges in the Islamic world. IsDB member countries face significant challenges in food security, healthcare access, climate adaptation, water scarcity, and economic development. The fund invests in ventures using science and technology to address these challenges in ways that are commercially viable and scalable.

The fund operates across all 57 IsDB member countries, from least developed countries in Sub-Saharan Africa to middle-income countries in the Middle East, North Africa, Central Asia, and Southeast Asia. Projects typically run 36 months, giving you time to develop your technology, prove your business model, and prepare for follow-on investment or revenue-based growth.

Key Details at a Glance

What Transform Fund Actually Provides

Transform Fund provides flexible financing structured to match your venture’s needs:

Grant Component for activities that don’t generate immediate returns:

• Research and development
• Prototype development and testing
• Regulatory approvals and certifications
• Market research and business model development
• Intellectual property protection
• Pilot deployments and demonstrations

Concessional Loan Component for investments that will generate returns but need patient capital:

• Manufacturing equipment and facilities
• Inventory and working capital
• Market expansion and scaling
• Sales and distribution infrastructure
• Below-market interest rates and flexible repayment terms

Potential Equity Investment for ventures ready for growth capital:

• Minority equity stakes in high-potential ventures
• Aligned with commercial co-investors
• Exit strategies that enable IsDB to recycle capital

The specific mix depends on your venture’s stage, business model, and financing needs. Early-stage ventures might receive mostly grants; more mature ventures might receive loans or equity.

Beyond financing, Transform Fund provides:

• Technical assistance and mentorship from IsDB experts and partners
• Connections to markets, customers, and distribution channels
• Support navigating regulatory and policy environments
• Access to IsDB’s network across member countries
• Visibility and credibility that helps attract follow-on investment
• Peer learning and knowledge exchange with other fund recipients

Who Should Apply

Transform Fund is designed for science and technology ventures that have moved beyond pure research but need support to reach commercial scale.

You’re a strong candidate if you:

• Are a startup, SME, university, or research center in an IsDB member country
• Have technology or innovation addressing food security, health, climate, water, energy, or education challenges
• Have proven your concept through pilots, prototypes, or early deployments
• Have a scalable business model with clear path to commercialization
• Can demonstrate market demand and customer interest
• Have a capable team with relevant technical and business expertise
• Align with Islamic values and principles
• Can show how your solution advances SDG goals

The fund works especially well for:

• Agritech ventures improving crop yields, reducing post-harvest losses, or connecting farmers to markets
• Healthtech solutions expanding access to quality healthcare, especially in underserved areas
• Climate tech addressing adaptation, mitigation, or resilience challenges
• Water technology improving access, quality, or efficiency
• Clean energy solutions for off-grid or underserved communities
• Edtech expanding access to quality education
• Ventures led by women or youth entrepreneurs

You’re probably not a good fit if:

• You’re still in basic research phase without a working prototype
• You’re already commercially successful and don’t need support
• Your technology doesn’t address clear development challenges
• You have no clear path to commercialization or sustainability
• Your business model isn’t scalable beyond a single location
• You lack the team or capacity to execute

The most competitive applicants have de-risked their technology through pilots, demonstrated market demand, and need capital and support to scale.

Application Process and What to Expect

The application process is rigorous and multi-staged:

Stage 1: Expression of Interest (Weeks 1-2) - Submit a brief EOI (typically 3-5 pages) outlining your venture, technology, development impact, and financing needs.

Stage 2: EOI Screening (Weeks 3-4) - IsDB screens EOIs for basic eligibility and strategic fit. About 30% are invited to submit full proposals.

Stage 3: Full Proposal Development (Weeks 5-10) - Develop comprehensive proposal including:

• Detailed technology description and development status
• Market analysis and commercialization strategy
• Development impact and SDG alignment
• Financial projections and funding requirements
• Team qualifications and organizational capacity
• Risk analysis and mitigation strategies

Stage 4: Technical and Financial Evaluation (Weeks 11-16) - IsDB conducts thorough review including:

• Technical assessment of your innovation
• Commercial viability evaluation
• Development impact analysis
• Financial due diligence
• Team and organizational capacity review

Stage 5: Due Diligence and Site Visits (Weeks 17-20) - For shortlisted ventures, IsDB conducts detailed due diligence including site visits, reference checks, and deeper financial analysis.

Stage 6: Investment Committee Review (Weeks 21-24) - Final candidates present to IsDB’s investment committee for funding decisions.

Stage 7: Contracting and Disbursement (Weeks 25-30) - Negotiate financing terms, finalize agreements, and receive first disbursement.

Stage 8: Implementation (36 months) - Execute your plan with regular reporting, monitoring, and IsDB support.

The entire process from EOI to funding typically takes 6-8 months.

Insider Tips for Competitive Applications

Lead with development impact, not just technology. IsDB wants to know how your innovation improves lives, not just how clever the technology is. Quantify the development challenge you’re addressing and how your solution creates impact at scale.

Demonstrate traction and validation. Show that you’ve tested your technology with real users, that customers are willing to pay, and that your solution works in the challenging conditions of developing countries. Pilots, testimonials, and early sales data are powerful.

Have a credible path to sustainability. IsDB won’t fund ventures that depend on perpetual subsidies. Show how your business model generates revenue, achieves financial sustainability, and can scale without ongoing donor support.

Align with Islamic values. While Transform Fund is open to ventures regardless of founders’ backgrounds, your solution should align with Islamic principles. Avoid technologies or business models that conflict with Islamic values.

Show how you’ll scale across IsDB member countries. Ventures that can expand beyond a single country are more attractive than those limited to one market. Explain your regional expansion strategy.

Quantify your SDG impact. Don’t just say you address SDG 2 (Zero Hunger). Say “Our technology will help 50,000 smallholder farmers increase yields by 30%, improving food security for 250,000 people and increasing farmer incomes by $500 per year.”

Have co-financing or investor interest. While not required, ventures that have attracted other investors or have revenue demonstrate market validation and reduce IsDB’s risk.

Build a strong team. IsDB invests in teams as much as technologies. Highlight relevant experience, complementary skills, and evidence that your team can execute.

Be realistic about timelines and milestones. Overly optimistic projections undermine credibility. Use realistic assumptions based on your actual progress and comparable ventures.

Common Challenges and How to Navigate Them

Balancing development impact with commercial viability. Some ventures maximize impact by serving the poorest customers, but these customers can’t pay much. Others maximize revenue by serving wealthier customers but have less development impact. Find the balance that achieves meaningful impact while being financially sustainable.

Navigating regulatory environments. Many IsDB member countries have complex or unclear regulations for new technologies. Budget time and resources for regulatory approvals, and engage with regulators early.

Building distribution in challenging markets. Reaching customers in rural areas, conflict-affected regions, or countries with weak infrastructure is difficult. Develop creative distribution strategies using local partners, mobile technology, or existing networks.

Managing currency and exchange rate risk. If you receive funding in dollars but earn revenue in local currency, exchange rate fluctuations can affect your business. Develop strategies to manage this risk.

Demonstrating impact measurement. Tracking development outcomes (improved health, increased income, reduced emissions) is harder than tracking business metrics. Invest in robust monitoring systems from the start.

Frequently Asked Questions

Can ventures from any IsDB member country apply? Yes, all 57 member countries are eligible.

Do founders need to be Muslim? No, but ventures should align with Islamic values and principles.

Can we apply if we’ve already received other funding? Yes, as long as you still need additional financing to scale.

What if our technology isn’t fully proven yet? You need at least a working prototype and some validation. Pure research projects aren’t eligible.

Can universities apply directly? Yes, universities and research centers can apply, especially for spinout ventures.

Does IsDB take equity in all ventures? No, the financing structure depends on your needs and stage. Some ventures receive grants and loans without equity.

What happens if we don’t achieve our milestones? IsDB works with ventures to understand challenges and adjust plans. However, persistent underperformance could affect future disbursements.

Can we apply for multiple projects? Focus on one strong application rather than multiple weak ones.

How to Apply

Step 1: Review the Transform Fund guidelines on the IsDB website at isdb.org.

Step 2: Assess whether your venture fits the eligibility criteria and priorities.

Step 3: Prepare your Expression of Interest following IsDB’s format.

Step 4: Submit your EOI through IsDB’s application portal before the June 5, 2025 deadline.

Step 5: If invited to submit a full proposal, work closely with IsDB staff to develop a strong application.

For questions, contact IsDB’s Science, Technology and Innovation Division through their website.

IsDB member countries face significant development challenges that science and technology can help address. Transform Fund provides crucial support for ventures working to commercialize innovations that improve lives while building sustainable businesses. If you have proven technology addressing real development needs and the capacity to scale, this fund can help you bridge the gap from pilot to market impact.