In the second quarter of the year, Latin American technology firms managed to raise US $ 7.2 billion in venture capital investments, according to a report by CBInsights’ “State of Venture Report”.
The startup scene in Latin America has grown in recent years, attracting foreign funds that once considered it a technological haven with few companies with sufficient potential worthy of investments.
The highest collections were achieved by already developed firms and intermediate or late stages, such as C6Bank, Brazil’s Nubank and Kavak, the report said.
However, 70% of the total financing obtained in the first semester went to firms in the initial growth phase.
In the first half of the year, technology firms based in the region have already raised US $ 9.3 billion, almost double the total reached in 2020.
The record first half was marked by fundraising for the region’s most valuable startup, Brazilian Nubank, which received a US $ 750 million investment led by Berkshire Hathaway Inc.
In total, 9 of the 17 unicorn companies – startups valued at US $ 1 billion or more – in Latin America have been created since the beginning of 2019, according to records from the Latin American Venture Capital Association (Lavca).
Nubank, the largest private startup in the region, is now valued at $ 30 billion, while Colombian delivery app Rappi Inc. raised about $ 300 million last year amid pandemic-induced growth and now it is valued at at least $ 4 billion.
