The Inter-American Development Bank (IDB) Group Wednesday said that it’s innovation and venture capital arm, IDB Lab, is providing two million US dollars as part of a strategic investment in the 500 LatAm Seed Fund IV, managed by 500 LatAm.
It said that the fund will invest in approximately 40 early-stage tech startups in Latin America and the Caribbean.
“This operation marks a new round of investment by IDB Lab in a 500 LatAm fund, following its participation in 2020 in the 500 Luchadores III fund, which supported over 100 startups that have already generated more than 10,000 direct and indirect jobs and reached more than 2.6 million users in the region.”
The IDB said that the 500 LatAm Seed Fund IV will provide pre-seed and seed capital to over 40 startups developing highly scalable technology solutions in the region. It will also provide strategic support in areas such as product development, talent recruitment, monetization, customer acquisition, international expansion, and raising additional capital.
“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,” said Magdalena Coronel, acting chief of IDB Lab’s Venture Capital Investments Division.
The IDB said that currently, 500 LatAm IV is accepting applications from interested startups, adding that selected companies will receive a US$300,000 investment and access to a personalised mentoring programme.
“This investment reaffirms IDB Lab’s commitment to expanding access to early-stage funding in Latin America and the Caribbean and to supporting agents of innovation in emerging ecosystems, contributing to regional growth and integration,” it added. (CMC)
