Eight Costa Rican companies advance in the LuxAid Challenge Fund

Costa Rica has a dynamic innovation ecosystem. Many of its 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 to scale sustainably. This is where the LuxAid Challenge Fund, implemented by LuxDev on behalf of Luxembourg Development Cooperation, aims to make a difference. The Fund supports companies that have already built promising solutions and helps them move towards a new stage of growth, implementation and impact. Eight companies have now reached the Pitch Days, the final stage of the Fund’s selection process, where four businesses will be awarded co-financing of up to EUR 120,000 each.

The LuxAid Challenge Fund call for proposals generated strong interest across Costa Rica. A total of 137 applications were initiated, of which 24 met the eligibility requirements following a rigorous assessment process.

Before reaching the final stage of the selection process, applicants underwent an eligibility screening, technical evaluation, field visits and due diligence exercises. These steps enabled the assessment of their 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, which has enabled them to present their projects to the Selection Committee with more structured business models and clearer pathways for growth.

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. 

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 their 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 up solutions that contribute to the achievement of the Sustainable Development Goals while strengthening their commercial sustainability.

The projects presented during the Pitch Days showcased the breadth of innovation emerging in Costa Rica. The proposals reflected a wide range 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 make the final decision, which is expected to be announced in autumn 2026.

The LuxAid Challenge Fund reflects Luxembourg Development Cooperation’s commitment to fostering more resilient, competitive and sustainable economies by mobilising the private sector as a driver of inclusive development.

The LuxAid Challenge Fund is an initiative funded by the Grand Duchy of Luxembourg and implemented by LuxDev, the Luxembourg Development Cooperation Agency.