Latin American startups led by Brazil and Mexico raised $8.1 billion in venture capital in 2022, according to a report by Endeavor and Gisco Partners. Despite the fact that the figure is 47 % lower than that of 2021, this year has been classified as “strange” due to the circumstances presented by the pandemic.

The director of Endeavor’s Intelligence team, Enrico Robles del Río, mentioned that despite the fact that 2022 has been a difficult year for entrepreneurs, it has been the second record number in the last decade. In turn, he emphasized that, although there has been a decrease of 47 %, if compared worldwide, the figure has been 42 %, which means that Latin America follows the same trend.

On the other hand, Vincent Speranza, general director at Endeavor Mexico, highlighted that the reduction in investment in terms of capital is less due to the “cautious” mentality of the financing funds. This is due to the complicated landscape of high interest rates and forecasts of a global recession.

The study also revealed that Mexico and Brazil lead investments with 75% of the total capital deployed in the region. Robles del Río mentioned that, including Colombia, the three nations received 90 % of the total venture capital allocated to startups in Latin America during 2022.

Regarding the focus on investment, the report presented by Endeavor highlights that 41 % of the capital allocated to startups went to companies in their first phase of development, which meant an increase of 9 % compared to 2021. Startups focused on “cleantech” (technologies for clean sources), “gaming” (the video game market) and “legaltech” (those mainly dedicated to facilitating and optimizing the processes of small and medium-sized companies) were the main beneficiaries in 2022.

K. Tovar

Source: Forbes Chile

(Reference image source: Alexander Grey, Unsplash)

Visit our news channel on Google News and follow us to get accurate, interesting information and stay up to date with everything. You can also see our daily content on Twitter and Instagram

La entrada Latin American startups generated $8.1 billion in 2022 apareció primero en Bitfinance.

Financial start-ups (fintech) in Germany are experiencing a record year in 2021, having received venture capital of more than 3.2 billion euros ($ 3.6 billion) between January and the end of September.

The study carried out by the Comdirect bank together with the consulting firm Barkow Consulting and the investor Commerzbank Main Incubator indicates that the newly created companies had already obtained 1,500 million euros from investors above what they obtained in the whole of 2019, which already recorded a record.

The report points out that at the end of September there had been 137 investment rounds, only a few operations less than the previous record year, with 150 rounds. Between January and September, 84 new startups were created. In total, more than a thousand young financial companies, called “fintech”, were counted for the first time in Germany.

“More than 15 years after the appearance of the first German fintechs, the sector is experiencing a second spring,” says Alena Kretzberg, director of digital banking at Commerzbank. “Digital financial offerings are benefiting greatly from changes in consumer and banking habits as a result of the pandemic,” she noted.

Matthias Lais, director of the Research and Development Unit at Commerzbank, notes that only a small part is likely due to the recovery effects of the coronavirus crisis in 2020.

Fintechs on the road to success

Venture capital funds and large companies provide capital to start-ups (known as “start-ups”) in the hope that their business ideas will flourish. In times of low interest rates, there is also a greater contribution of money.

Some investment robots have also grown strongly, which automatically invest assets in the stock market, and digital banks that only operate online, without physical offices. But online brokers for the purchase of securities via app and insurance companies have also proliferated strongly.

Among those raising large sums in 2021 are online broker Trade Republic, digital insurer Wefox, asset manager Scalable Capital and Berlin-based Solarisbank.

Source: dpa

La entrada Fintech sector in Germany sets new record in 2021 apareció primero en Bitfinance.

The Council of Ministers approved this Tuesday in Spain the granting of loans from the Fund for the Promotion of Development (FONPRODE) for entities in Costa Rica, Panama and Peru for a total amount of 24.9 million euros.

Thus, the Government has authorized the concession for a maximum amount of 20 million US dollars (16.8 million euros) to Banco Improsa S.A., of Costa Rica, to finance “the expansion of its portfolio.” The Executive has established a repayment term of 9 years, with an interest rate of 4.55 % fixed per year.

According to the Ministry of Foreign Affairs, the loan to Banco Improsa “seeks to contribute to better and greater access to financing for Costa Rican micro, small and medium-sized enterprises.” He pointed out that the V Master Plan of the Spanish Cooperation 2018-2021 indicates that FONPRODE will pay “special attention to interventions in microfinance, bankarization of remittances, small and medium-sized enterprises, social economy, venture capital, creation of infrastructures and Public-Private Alliances for Development (APPD) “.

It also includes Costa Rica among the countries of “advanced cooperation, for which it is prescribed that an advanced dialogue will be maintained with them on sectoral policies and technical and institutional cooperation schemes.”

The Council of Ministers has also approved the agreement that authorizes the granting of a loan for a maximum amount of 5.6 million euros to the Central Empresarial Solidaria, SA, of Panama, charged to the Fund for the Promotion of Development , to finance the expansion of your portfolio.

CFE Panama, incorporated in 2009, is a private equity commercial company, organized as a public limited company under Panamanian laws and operating in accordance with Law 42, of July 23, 2001, which regulates the operations of financial companies. Its objective is to facilitate access to credit for micro, small and medium-sized companies, accompanying them in their development with simple and fast financial services, adapted to the client’s needs.

Finally, the Executive has authorized the granting of a loan for a maximum amount of 3 million dollars (2.5 million euros) to Empresa de Desarrollo de la Pequena y Microempresa Alternativa S.A. (EDPYME Alternativa), from Peru.

Source: dpa

La entrada Government of Spain approves loans to entities in Costa Rica, Panama and Peru apareció primero en Bitfinance.