One of the biggest difficulties Latin American startups face when scaling their growth is the lack of funding. In recent years, however, startups in the region continue to gain followers in the capital market, particularly in what is known as private equity investments and venture capital.
In the second quarter of 2021, technology companies based in Latin America managed to attract no less than 7.2 billion US dollars in capital investments, more than three times what was raised between January and March of this year, according to the report ‘State of Venture Report ‘from CBInsights. Some of the largest disbursements in this period correspond to investment operations achieved by companies in an intermediate or late stage, that is, those that are already more advanced in their expansion process, such as C6Bank, Nubank and Kavak. Even so, most of the funds (almost 70% in the first half of 2021) are still destined for companies in the early stages of development.
With a total of 9,300 million raised in the first half of 2021, this volume of investments already represents almost double the 5,300 million registered during all of 2020, the year in which the coronavirus pandemic visibly slowed down investments in Latin American startups. That moment of uncertainty seems to have been left behind, or at least that is indicated by the 396 investment agreements reached in the first half of this year, whose average value is close to 23.5 million dollars.