VC Investment in LatAm Startups Tripled During 2021
LatAm VC investment tripled to $12B, with average checks at $23M, as global giants flock to ripe markets.
Venture Capital Investment in Latin American Startups is estimated to have totaled $12B during 2021, which was triple the amount of 2020. The average check written to fund startups was $23M.
For more than a decade, VCs have focused their attention on startups from Silicon Valley and other main US cities. However, lately, they have become increasingly interested in outside opportunities. According to A16z’s Angela Strange, interest is rising for two reasons:
The market conditions are ripe for new companies, and there’s a lot of consumer demand.
There’s great, great talent that is ready to pursue those opportunities.
Top VC firms such as Andreessen Horowitz and SoftBank, led by Bolivian Marcelo Claure, announced their upcoming investments in fintech, e-commerce, logistics, real estate, and the creator economy.
Not only are international VC firms betting on Latin America, but local firms who better know the market’s needs are also emerging. Platanus Ventures, a Chilean startup accelerator, aims to become the Y Combinator of Latin America. Guatemala’s Invariantes Fund is also investing in tech startups in the region from several industries, including enterprise SaaS, fintech, and even hardware players like Luminar.