Latin America has become a vibrant region in technological development, which shakes the hornet of private investment. And in that line, Brazil and Colombia have stolen attractiveness to Mexico and have achieved greater capital injection for their ventures.
More and more…
More and more investors of entrepreneurial capital are interested in betting on the projects and startups that are being developed in Latin America. The investment of the so-called venture capital (VC) in the region doubled for the second consecutive time, to raise about 2,000 million dollars, according to the Private Capital Association for Latin America (LAVCA).
If we take the 2016 data, when Latin American startups attracted an investment of 500 million, the investment volume quadrupled in 2018.
Mexico attracted 175 million dollars in venture capital in 2018, an amount that was greatly exceeded by the 1.3 billion dollars Brazil received and the 334 million dollars invested in Colombia, according to LAVCA.
In Argentina, 84 million dollars were injected into venture capital, while Chile received 46 million dollars.
For 2019, the outlook for venture capital investments is even more encouraging.
In March of this year SoftBank Group announced the launch of an innovation fund for 5,000 million dollars that will focus solely on Latin American companies.
Cases
Perhaps the reflection of greater attractiveness in investment in Colombian startups is the case of Rappi over the Mexican Clip. Both received capital injection from SoftBank: Rappi, a home delivery service, received $ 1 billion; The Fintech Clip, 20 million. We must certainly consider that these are different models in different markets.
On October 11, Uber announced that it will acquire a majority stake in the online grocery purchase application, Cornershop. This startup of Chilean origin had already aroused the interest of Walmart, however, the agreement of 225 million dollars could not be consolidated, after Mexican antitrust authorities blocked this transaction.
Also published on Medium.