Why Global Investors Are Coming to Support Latin American Startups – Tech Crunch

SoftBank: It’s about joining Latin America’s funding rather than a hurdle.

Latin America The startup ecosystem is having a great year, mega rounds are announced very quickly and new unicorns are released almost monthly. This is largely due to the clearly evolving startup scene in the region, with proven achievements such as Nubank, Corner Shop, Jumpas and Lagi helping to strengthen Lithium’s reputation.

Interestingly, many cycles in the region are led by investors elsewhere. Firms such as Softbank, Tiger Global Management, Tencent, Excel, Ribbet Capital and QED Investors are investing in Late AM. Some see more opportunities than the United States – Latin America, they believe, is historically ripe for disruption, especially in the tech and property sectors, with significant underground and unbanked in the region. Due to the population and relatively unmade real estate industry.

Last month, my colleagues Anna Heim and Alex Wilhelm found that structural factors such as strong digital penetration and rapid e-commerce growth were among the key reasons Latin America is breaking venture capital records this year. A VC from Mexico even announced that the story was “about talent, not capital.”

Local vice-chancellors are worried about human capital in the region, but for some global investors, Latin America’s appeal extends beyond talent to the general public. Shaw Niata, Softbank’s managing partner, who co-heads its ڈالر 5 billion Latin America fund, pointed to a dynamic that seems obvious but is rarely mentioned. participation rather than Disruption.

“The majority of the population consumes almost every type of consumption. Similarly, most businesses are less than modern software solutions,” Niata explained. “There’s a lot to build for a lot of people and businesses. In San Francisco, the Venture Ecosystem makes life a little better for individuals and businesses who are already living in the future. At Latham, tech entrepreneurs Building a future for one.

Excel partner Ethan Choi says the region’s consumer markets are growing rapidly thanks to the growing middle class and “technology is expanding into every aspect of consumer life”. This has increased the demand for digital offerings, which has led to more startups, and consequently, increased investor interest.

Brazil and Mexico are on the Gravy Train.

One look at the dollars that will be put in the litmus this year is enough to convince anyone with skyrocketing interest.

According to preliminary data from the LAVCA, venture capital in Latin America totaled 6.2 billion in revenue in the first half of 2021, more than double the ڈالر 2.6 billion in the same period last year. And even beating all the ڈالر 4.1 billion invested in 2020 (Association for Private Capital Investment in Latin America – LAVCA used a different approach than CB Insights, if you’re wondering).

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