TLDR:
- Dealmaking fell 26% by volume and 25% by aggregate value year-over-year across Latin America in May
- The emergence of LatAm’s “emergingtechs” with Brazil leading in AI-focused startups
Dealmaking in Latin America decreased in May compared to the previous year, with Brazil leading in both deal volume and aggregate value. Mexico, Chile, Colombia, Argentina, and Peru also had significant deal activity, with Mexico seeing a decrease in deals but still maintaining a high total aggregate value. Additionally, a report from Startup Genome highlighted the top startup ecosystems in Latin America, with São Paulo leading the pack.
The Distrito platform identified over 2,000 emergingtechs in Latin America, with a focus on new technologies like AI and IoT. These startups raised over US$3.8 billion in investments over the last six years. São Paulo, Mexico City, Bogotá, Santiago, and Rio de Janeiro were identified as the hottest startup ecosystems in the region.
In terms of private equity and venture capital investments, Brazil saw significant activity in the first five months of the year. KPTL launched a fund to support startups focused on solutions for the Amazon rainforest, while Bossa Invest plans to accelerate investments in angel-phase startups. M&A activity included Selbetti Tecnologia acquiring InterCompany and Accenture acquiring Soko. Pátria Investimentos also acquired Nexus Capital in Colombia.
