This article uses two case studies from Bolivia to analyse how this new rural financing tool could meet the needs of certain economic entitites which are excluded from traditional financial services and for which credits are not well adapted. The Rural Development Programme (PDR) and the Programme for Investing in Companies (PIE) cases demonstrate that venture capital investing can positively impact the recipient entities in terms of economic and financial strengthening, institutional consolidation and improved management; it can create or keep jobs and foster local economic activity.

Meeting the financial needs of the rural producing sector has proved difficult, even with venture capital funds. The cases showed that venture capital is better adapted to the constraints of the agricultural sector than traditional credits; however it is not yet the answer to the financing needs of production activities. They are considered too risky due to the nature of the activity and the products, as well as the socio-political stability of the country. Mastering the risk management costs is a challenge faced by these funds. In case of PDR and PIE, the high operational costs and risks of working in the rural areas have impeded the spread of venture capital investment outside of the La Paz-Cochabamba-Santa Cruz axis in Bolivia. Therefore these funds typically focus on urban and periurban organisations whose activities have a direct impact on rural populations, typically processing and marketing activities as many small producers find market outlets for their production through them.

The article concludes with the disclaimer that lessons learned from this tool are limited, as it is still in the process of being developed and that external factors have also played a role in the outcomes of these particular cases of venture capital funds in Bolivia.