Latin American startups generated $8.1 billion in 2022

A report by Enveavor and Gisco Partners highlighted the benefits obtained by startups last year

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)

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