USAID Development Innovation Ventures (DIV)

What if your pilot project proving that SMS reminders reduce missed vaccinations in Kenya could receive funding to test at scale, then more funding to expand nationally, then even more to replicate across Africa? That’s the USAID Development Innovation Ventures (DIV) model—a tiered funding approach that invests in evidence-based innovations and supports them through proof-of-concept to global scale.

At a Glance

How DIV Works

DIV operates like a venture capital fund for development—investing small amounts in early-stage ideas, then increasing funding as solutions prove effective through rigorous evidence.

The Tiered Model

What Makes DIV Different

• Open to anyone: For-profits, nonprofits, individuals, research institutions, governments
• Any sector: Health, agriculture, education, energy, governance, water—all welcome
• Evidence-focused: Emphasis on rigorous testing and measurement
• Scaling pathway: Successful grantees can return for larger grants
• Rolling applications: No fixed deadlines; apply when ready

What DIV Funds

Eligible Sectors

DIV is sector-agnostic but has strong portfolios in:

• Health: mHealth, diagnostics, maternal/child health, disease prevention
• Agriculture: Smallholder productivity, market linkages, climate resilience
• Education: EdTech, learning outcomes, teacher training
• Economic Growth: Financial inclusion, employment, enterprise development
• Water & Sanitation: Clean water access, sanitation solutions
• Energy: Off-grid energy, clean cooking, energy access
• Governance: Transparency, citizen engagement, public service delivery

Innovation Criteria

DIV evaluates innovations on three core criteria:

1. Cost-Effectiveness

• Does your solution achieve more impact per dollar than alternatives?
• Can you demonstrate or credibly project superior cost-effectiveness?

2. Evidence of Effectiveness

• What evidence supports your solution’s impact?
• How rigorous is that evidence? (observational → RCT)
• What evaluation will you conduct to strengthen evidence?

3. Pathway to Scale

• How will your solution reach millions of beneficiaries?
• Who will adopt, fund, or implement at scale? (governments, markets, donors)
• Is the scaling pathway realistic and sustainable?

Examples of Funded Innovations

Stage 1 Examples:

• Mobile-based agricultural extension for smallholders
• Low-cost diagnostic devices for infectious diseases
• Behavioral interventions to increase savings

Stage 2 Examples:

• Randomized controlled trial of school feeding programs
• Testing microinsurance products across multiple regions
• Evaluating clean cookstove adoption models

Stage 3 Examples:

• National rollout of digital health platforms
• Market development for fortified foods
• Government adoption of payment platforms

Eligibility Requirements

Who Can Apply

Geographic Scope

• Solutions must address challenges in USAID-presence countries
• Applicants can be based anywhere in the world
• Some countries have restrictions (check USAID guidelines)

What’s NOT Eligible

• Pure research without practical application
• Humanitarian/emergency response
• Projects primarily in the United States
• Previously funded ideas without new evidence/approach

Application Process

Stage 1: Proof of Concept

Purpose: Test whether your innovation works in practice

Requirements:

• 2-page concept note + budget
• Preliminary evidence or strong theoretical basis
• Clear testing methodology
• Identified pathway to scale (even if distant)

Evaluation Focus:

• Innovation and potential impact
• Testing approach rigor
• Team capability
• Cost-effectiveness potential

Stage 2: Testing & Positioning

Purpose: Generate rigorous evidence and prepare for scale

Requirements:

• Full proposal (length varies)
• Strong results from Stage 1 or equivalent pilot
• Rigorous evaluation plan (ideally RCT)
• Detailed scaling strategy
• Partnership letters (scaling partners)

Evaluation Focus:

• Pilot results and evidence quality
• Evaluation methodology
• Scaling partnerships and pathways
• Cost-effectiveness analysis

Stage 3: Scaling

Purpose: Expand proven solutions to reach millions

Requirements:

• Full proposal with scaling plan
• RCT or rigorous impact evaluation results
• Committed scaling partners
• Detailed budget and operational plan
• Sustainability strategy

Evaluation Focus:

• Impact evidence rigor
• Cost-effectiveness versus alternatives
• Scaling partner commitment
• Sustainability and replicability

Application Timeline

Writing a Competitive Application

Stage 1 Tips

In 2 pages, you must:

• Clearly explain the problem and your solution
• Demonstrate innovation (what’s new?)
• Show preliminary evidence or strong logic
• Outline a testing plan with measurable outcomes
• Sketch a plausible scaling pathway

Common Stage 1 mistakes:

• Solution isn’t innovative—just replication of existing approaches
• No clear cost-effectiveness advantage
• Testing plan lacks rigor
• Scaling pathway is vague or unrealistic

Stage 2 Tips

Key elements:

• Strong pilot data from Stage 1 or independent implementation
• Rigorous evaluation design (RCT preferred)
• Clear metrics and measurement plan
• Identified scaling partners with expressed interest
• Realistic timeline and budget

Common Stage 2 mistakes:

• Weak pilot evidence
• Evaluation design not rigorous enough
• Scaling partnerships are aspirational, not committed
• Budget doesn’t match proposed activities

Stage 3 Tips

What DIV wants to see:

• RCT or equivalent showing significant impact
• Cost-effectiveness superior to alternatives
• Committed scaling partners (government, donors, or markets)
• Detailed operational plan for scale
• Sustainability model beyond DIV funding

Common Stage 3 mistakes:

• Evidence not rigorous enough for the funding ask
• Scaling partners not genuinely committed
• Cost-effectiveness not clearly demonstrated
• Sustainability plan is weak

Insider Tips

Understanding DIV’s Philosophy

• “Fail fast”: Stage 1 grants expect many innovations won’t work—that’s okay
• Evidence matters most: Good evidence of modest impact beats weak evidence of big claims
• Scaling is the goal: Every proposal should answer “how does this reach millions?”
• Cost-effectiveness is king: A solution 50% as effective but 90% cheaper might be better

Strengthening Your Application

• Be specific about comparisons: What are beneficiaries using now? How are you better?
• Quantify everything: Cost per beneficiary, expected impact size, scaling numbers
• Pre-commit to learning: Show you’ll pivot if evidence suggests changes
• Identify scaling partners early: Even for Stage 1, name who would adopt at scale

Evidence Hierarchy

DIV values evidence roughly in this order:

1. Randomized controlled trials (RCTs)
2. Quasi-experimental designs (difference-in-differences, regression discontinuity)
3. Strong observational studies with comparison groups
4. Pre-post comparisons
5. Theoretical basis and analogous evidence

For Stage 3 funding, you typically need Level 1 or 2 evidence.

Working with DIV

• Engage early: DIV staff are accessible; reach out before applying
• Be responsive: Quick, clear communication during review helps
• Plan for learning: DIV expects adaptation based on evidence
• Share failures: Negative results from rigorous evaluation are valuable

Common Mistakes to Avoid

Conceptual Problems

• Not actually innovative: Replicating existing solutions without improvement
• Vague scaling story: “Governments will adopt this” without explaining why
• Unclear cost-effectiveness: No comparison to alternatives
• Mission creep: Trying to solve too many problems at once

Evidence Issues

• Overstating pilot results: Claiming success from weak or anecdotal evidence
• Poor evaluation design: Unable to attribute impact to your intervention
• No baseline: Can’t measure change without knowing the starting point
• Selection bias: Results only from self-selected, motivated beneficiaries

Practical Problems

• Budget mismatch: Costs don’t align with proposed activities
• Unrealistic timeline: Underestimating time for research, approvals, implementation
• Weak team: Lacking expertise in key areas
• Compliance gaps: Unfamiliar with USAID requirements and regulations

Frequently Asked Questions

Can for-profit companies apply?

Yes. DIV funds for-profits, though grant terms may differ from cooperative agreements with nonprofits. Social enterprises and B-corps are common applicants.

Do I need to start at Stage 1?

No. If you have existing strong evidence, you can apply directly to Stage 2 or Stage 3. Your application should explain your evidence base.

Can I apply if I’ve never worked with USAID?

Yes. DIV specifically welcomes first-time USAID grantees. You’ll receive support navigating USAID systems.

What if my RCT shows no impact?

DIV values rigorous evidence of any kind. A well-designed RCT showing no impact is publishable and valuable—you won’t be penalized for honest negative results.

How does DIV compare to other innovation funds?

DIV is larger and more patient than most innovation funds, with a longer time horizon and willingness to fund multi-year scaling efforts. It’s less quick than some challenge funds but offers a clearer pathway to major grants.

Can I apply for evidence generation only?

Yes, through “Evidence & Scale” grants. If you have a proven solution but need additional evidence for scale, this may be appropriate.

Is there a maximum number of applications?

No formal limit, but DIV prefers focused applications. Multiple applications for unrelated innovations are fine; multiple versions of the same idea are not.

Is DIV Right for You?

Strong fit if:

• You have an evidence-based approach to a development challenge
• You can articulate a plausible pathway to reaching millions
• You’re committed to rigorous testing and measurement
• You can demonstrate cost-effectiveness versus alternatives
• You’re willing to adapt based on evidence

Not the right fit if:

• You need funding for emergency/humanitarian response
• Your solution is primarily relevant to developed countries
• You can’t commit to rigorous evaluation
• You’re looking for core operating support
• Your timeline is very short (less than 6 months to award)

DIV represents one of the most substantial and evidence-focused innovation funds in global development—offering patient capital to innovators willing to prove their impact through rigorous testing before scaling to reach millions.