Latin America VC is investing three times over $ 15bn by 2021

Investing in Latin America doubled from its previous history to $ 15bn last year, with investors concentrating on start-ups in areas such as economics, online shopping and real estate.

Like many upcoming markets the region is facing a thrive on fast-growing professional businesses, from a Brazilian digital lender Nubank to a platform used in Mexico Kavak.

There was a total of $ 15.3bn of VC revenue for over 650 sales in 2021, according to data from the Association for Private Capital Investment in Latin America, or Lavca.

Total revenues were larger than the previous seven years combined and exceeded the $ 4.9bn record set in 2019.

“After more than 12 years of marketing technology companies in Latin America, it is amazing to see what happened in the last few years,” said Francisco Alvarez-Demalde, co-founder and director of Riverwood Capital in the US.

Many founders who are enjoying success want to reduce the inefficient regimes in Latin America. Some are complex industries that once had little competition or left consumers in need.

Fintech remains a fundraiser in 2021, representing 39 percent of total revenue flowing in the region, followed by ecommerce (25 percent) and home technology, or proptech (9 percent).

“We are also seeing fintech being integrated into other sectors, proptech is launching fundraisers and agtechs. [agricultural technology companies] Establishing credit systems for farmers, “said Carlos Ramos de la Vega, director of venture capital in Lavca.

Sixteen “unicorns” – a private start-up company worth more than $ 1bn – were formed in Latin America in 2021, according to Lavca, including cryptocurrency exchange Bitso and Chilean food-based manufacturer NotCo.

“It is possible that funding for the purchase of technical equipment in the region could be set back in 2022, but we can also see more developments in integration. [and] M&A.

Last year’s largest VC revenue in the region was raised at $ 1.15bn around Nubank, which included half a billion dollars from Warren Buffett’s Berkshire Hathaway.

Fintech began floating on the New York Stock Exchange in December with a market capitalization of more than $ 40bn, making it the most valuable financial institution in Latin America.

Experts in the field say that a well-developed network of startups, talent and money are making the best move.

“What we are seeing right now is that the VC’s global finances are focused on the region, setting up offices, hiring employers and funders,” said Marcos Toledo, a founder and co-founder of a Canary-based fundraiser in São Paulo.

He also highlighted insurance, health, education and business and business as areas with “many good ideas”.

The region’s beauty as an international destination was highlighted in September when SoftBank, a Japanese technical team, set up a second $ 3bn investment fund for the region, based on its own commitment to $ 8bn.

But with rising interest rates in the US, there is concern that new investments in developing countries could be reduced.

“It is possible that funding for the purchase of technical equipment in the region could be set back in 2022, but we can also see more developments in integration. [and] M&A, “said Alvarez-Demalde.