Eight Costa Rican companies advance in the LuxAid Challenge Fund

Costa Rica has a dynamic innovation ecosystem. Many of his initiatives have progressed well beyond the experimental phase, having validated their products or services, tested their business models and demonstrated commercial traction. Their next challenge is surviving. This is where the LuxAid Challenge Fund, implemented by LuxDev on behalf of Luxembourg Cooperation, aims to make a difference.

The Fund supports companies that have already built promising solutions and helping them move towards a new stage of growth, implementation and impact. As part of the Fund’s implementation in Costa Rica, eight pre-selected companies presented their projects during the Pitch Days, the ultimate step in the final selection process. Up to four companies will be awarded co-financing of up to EUR 120,000 each.

The Pitch Days brought together the shortlisted companies and a multi-stakeholder Selection Committee composed of representatives from the Embassy of Luxembourg in Costa Rica, LuxDev, the Ministry of Economy, Industry and Commerce of Costa Rica (MEIC), and external experts.

Identifying innovative companies ready to grow

The call for proposals generated strong interest across the country. A total of 137 applications were initiated, of which 24 met the eligibility requirements, following a rigorous assessment process. Prior to reaching this stage, applicants underwent eligibility screening, technical evaluation, field visits and due diligence exercises. These steps enabled the assessment of business models, operational and financial sustainability, implementation capacity, risk management and expected impact. Several of the shortlisted companies reflect the growing maturity of Costa Rica’s entrepreneurial ecosystem. Many have previously benefited from validation, proof-of-concept or early-stage support being able to reach the selection committee with more structured business models and clearer pathways for growth.

This process confirms that Costa Rica has solid, innovative companies with strong impact potential. At LuxDev, our role is to identify companies that have moved beyond the initial validation stage and are ready to grow. The quality observed throughout the evaluation and during the Pitch Days demonstrates both the relevance of the LuxAid Challenge Fund and the potential of these companies to deliver high-impact results. (Frank Wolff, LuxDev Regional Representative for Latin America and the Caribbean)

Closing a critical financing gap

Although innovation support is often available during the early stages of business development, many companies encounter difficulties when seeking the resources needed to expand their operations. This challenge was evident during the Pitch Days. While the participating companies differed in size, maturity and sector, they shared similar growth constraints. The main needs identified included access to financing, increased operational and production capacity, entry into new markets, expansion of customer bases and diversification of products and services.

For several of these businesses, support from the LuxAid Challenge Fund could have a significant multiplier effect, particularly in contexts where traditional financing mechanisms remain difficult to obtain. The Fund addresses this challenge by combining financial support with a strong focus on social and environmental impact. In doing so, it helps businesses scale solutions that contribute to the achievement of the Sustainable Development Goals while strengthening their commercial sustainability.

Diverse solutions with strong potential for impact

The projects presented during the Pitch Days showcased the breadth of innovation emerging in Costa Rica. The proposals reflected a strong diversity of innovations, many of which focused on enhancing the resilience and sustainability of production systems. Common themes included biodiversity-based solutions, reduced reliance on pesticides and agrochemicals, circular economy models, the creation of local resource loops, sustainable food systems, and the use of digital and artificial intelligence technologies to improve efficiency and impact.

Following the Pitch Days, the Selection Committee will move towards the final decision, expected to be announced in Fall 2026. The LuxAid Challenge Fund reflects Luxembourg Cooperation’s commitment to fostering more resilient, competitive and sustainable economies by mobilising the private sector as a driver of inclusive development.