TLDR:
- Lavca reports stable investment levels in Latin America, with over US$1.7bn invested in 217 deals during 1H24.
- The region has seen a shift towards local fund managers investing in startups.
Lavca, the association for private capital investment in Latin America, tracked over US$1.7bn in VC and equity funding in Latin America during 1H24, invested in 217 deals. The report indicates stable levels of investment in the region, with corrections seen in late-stage investments in the past two years. Local fund managers are playing a significant role in investing in startups across Latin America. Startups in Spanish-speaking Latin America, beyond Brazil, have seen substantial growth, with Uruguay emerging as a key player in attracting investment. In terms of financial instruments, debt financing and credit lines have become popular choices for startups. Despite challenges, IPOs are gradually making a comeback, with two listings already recorded in 2024. Fintech continues to attract the most investment, followed by cleantech, AI, and machine learning, among other sectors. The report also highlights the challenges startups face in fundraising and making it to the next investment round.
