Inter-American Development Bank (IADB) put $2 million into the 500 LatAm Seed Fund IV to back about 40 early-stage tech startups across Latin America and the Caribbean, according to the bank announcement. The venture capital arm of the IDB Group will target emerging tech hubs in Costa Rica, Dominican Republic, Ecuador, Guatemala, Peru, and Uruguay through the fund managed by 500 LatAm. Selected companies get $300,000 each plus access to mentoring programs covering product development, hiring, customer acquisition, and international expansion. Applications are open now for startups looking for pre-seed and seed funding.
This marks IDB Lab’s second investment in a 500 LatAm fund after backing the 500 Luchadores III fund in 2020. That earlier fund supported over 100 startups that created more than 10,000 direct and indirect jobs and reached 2.6 million users across the region. The success of that fund helped convince IDB Lab to double down on the partnership.
“This investment in 500 LatAm Seed IV reflects our commitment to strengthening regional integration and driving innovation in emerging ecosystems,” said Magdalena Coronel, acting chief of IDB Lab’s venture capital division. She added that the fund’s approach “democratizes access to seed capital and gives entrepreneurs more opportunities to grow and scale their solutions.” The program also provides strategic support beyond just money, helping startups with talent recruitment, monetization strategies, and raising additional capital rounds.
Latin America’s startup scene has grown rapidly but many entrepreneurs still struggle to find early-stage funding, especially outside major hubs like São Paulo and Mexico City. The fund aims to fill that gap by reaching smaller markets that often get overlooked by international investors.
IDB Lab says the investment shows its commitment to expanding access to startup funding across Latin America and the Caribbean while supporting regional economic growth and integration.
