IDB Bets on Tech Startups in Latin America

The economic crisis unleashed by COVID-19 has not stopped investment, least of all in the technology industry. The Inter-American Development Bank (IDB) will invest in two venture capital funds with presence in Mexico and Latin America: DILA Capital, headed by Alejandro Diez Barroso and Eduardo Clavé, and 500 Startups Latam, led by Santiago Zavala and René Lomelí, the IDB revealed in a statement.

IDB Lab, the IDB's innovation laboratory, selected DILA Capital to invest in its new DILA IV fund, an investment that will help finance between 18 and 25 technology startups in Mexico and Latin America. "The IDB investment represents for us a seal of approval for the work we have been doing, even during a complex moment like the one we are in because, while everything was put on hold because of the COVID-19 pandemic, the bank trusted in us”, said in an interview with Forbes Mexico Managing Partner of Dila Capital Alejandro Diez Barroso

The DILA IV fund will select innovative technology startups in the region to be financed. The company will seek to promote entrepreneurs in the financial services, health, education, logistics, mobility and solutions for SMEs sectors, among others.

As for 500 Startups, capital investment will be destined to support its 500 Luchadores III fund focused on 130 startups from all over Latin America. "For us, the investment made by the IDB represents a turning point. It is very important that, after all the progress made from 2012 to date, it is possible to join forces today with an institutional investor who has a lot of experience in many industries, allowing us to offer more opportunities to entrepreneurs in the region," said Santiago Zavala, Partner at 500 Startups Latam.

DILA Capital has invested in startups like Ben & Frank, Crehana, Kushki and Urbvan, while 500 Startups have bet on startups like Clip, Konfío, 99 Minutos, Platzi and Jüsto.