Funbio was created in 1995 with a GEF grant of 20 million dollars. Its creation was derived from the Brazilian government strategy to implement the Convention of Biological Diversity (CBD) signed in the Rio 92 summit.
Created as a sinking fund, the GEF contract set goals for Funbio, such as having a professional external asset manager, capable of performing a minimum average yield of 6,5% yearly; raising a minimum amount of 5 million dollars in the first five years of operation; besides overall quality performance.