IDB Lab Invests $2M in 500 LatAm Seed Fund IV to Boost Tech Startups

The IDB Lab, the innovation and venture capital arm of the Inter-American Development Bank Group (IDB), has announced a $2 million strategic investment in the 500 LatAm Seed Fund IV, a venture fund managed by 500 LatAm. The fund is designed to channel capital and expertise into the region’s early-stage technology startups, with a focus on emerging entrepreneurial ecosystems across Costa Rica, Dominican Republic, Ecuador, Guatemala, Peru, and Uruguay.

This operation represents a continuation of IDB Lab’s partnership with 500 LatAm, building on a prior investment in 500 Luchadores III in 2020. That earlier fund supported more than 100 startups, helping them generate 10,000 direct and indirect jobs and reach over 2.6 million users throughout Latin America and the Caribbean.

Fueling Early-Stage Entrepreneurs

The 500 LatAm Seed Fund IV will provide both pre-seed and seed capital to approximately 40 startups developing scalable technology solutions. Beyond financial support, the fund will equip startups with hands-on strategic guidance in key growth areas, including:

• Product design and development

• Recruitment and talent management

• Monetization strategies

• Customer acquisition and retention

• International expansion plans

• Securing follow-on capital

This holistic approach aims to strengthen startups not only financially, but also structurally, enhancing their capacity to survive in competitive markets and scale across borders.

IDB Lab’s Commitment to Emerging Ecosystems

Magdalena Coronel, Acting Chief of IDB Lab's Venture Capital Investments Division, highlighted the significance of this investment: “This investment in 500 LatAm Seed IV reflects our commitment to strengthening regional integration and driving innovation in emerging ecosystems. The fund's strategy democratizes access to seed capital and gives entrepreneurs more opportunities to grow and scale their solutions.”

By targeting early-stage innovators in less mature markets, IDB Lab seeks to reduce barriers to venture capital, ensure a broader distribution of resources, and enable entrepreneurs outside major hubs like Mexico, Brazil, and Argentina to compete on a regional scale.

Opportunities for Startups

Currently, 500 LatAm Seed Fund IV is open to applications from startups across the region. Selected companies will receive an average investment of $300,000 along with access to a personalized mentorship program. This dual offering of financial backing and expert guidance positions startups to accelerate growth, expand internationally, and attract further investment.

Building on Proven Impact

The partnership between IDB Lab and 500 LatAm builds on a track record of success. The 500 Luchadores III fund not only expanded entrepreneurial opportunities but also had measurable socio-economic impact through job creation and digital inclusion. The fourth seed fund aims to amplify these results by targeting new markets and underserved ecosystems, ensuring that innovation-led development spreads throughout the region.

Driving Regional Growth and Integration

This initiative underscores IDB Lab’s broader mission to catalyze innovation-driven growth in Latin America and the Caribbean. By empowering startups with resources, expertise, and international exposure, the organization contributes to:

• Regional economic integration through cross-border entrepreneurial networks

• Inclusive innovation by bringing opportunities to smaller and emerging markets

• Sustainable development by fostering scalable solutions in technology, services, and digital platforms

Looking Ahead

With the launch of the 500 LatAm Seed Fund IV, the IDB Lab and 500 LatAm are deepening their collaboration to unlock the potential of entrepreneurs who are reshaping industries and tackling regional challenges. The combination of capital, mentorship, and global networks will allow startups to transition from early ideas into impactful, growth-ready enterprises.

This investment reaffirms IDB Lab’s strategic role as a champion of early-stage financing and positions the 500 LatAm Seed Fund IV as a key driver of the next wave of innovation and job creation in Latin America and the Caribbean.