Narayan AmmachchiLatin American startups saw a significant uptick in VC investment during the first quarter of 2024, reaching a total capital infusion of US$1.35 billion.
This marks an increase of 24% compared to the corresponding period last year.
Financial technology firms emerged as the biggest winners for the period, according to data gathered by Brazilian bank Itaú and Sling Hub.
Leading the pack were Conta Simples, a Brazilian digital bank account developer which secured US$41.5 million; and Argentinian financial infrastructure provider Pomelo, raising US$40 million.
Colombian fintechs also made notable strides during this period. US private equity firm General Atlantic led a US$50 million series C funding round for Bold, while Addi secured $36 million in funding.
Latin American startups experienced a decline in funding after reaching a record high in 2021. However, high interest rates in the US and elsewhere tanked the region’s VC investment numbers. The latest data suggests that such pressures might be past already.
Sling Hub attributes this year’s surge in venture capital investments to lower interest rates and improved regional macroeconomic stability. Moreover, the positive performance observed in global equities is spilling over into private markets in the region, further enhancing investor confidence.
According to Lavca, a nonprofit association for private capital investment in Latin America, these startups received approximately US$4 billion in funding last year, underscoring the region’s growing prominence in the global startup ecosystem.
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