LATAM Startup Funding Rebounds; Hits $2.5 Billion in Q3

Venture capital funding for Latin American startups resumed its flows in the second half of 2023.

The latest data by VC monitor SlingHub and Itaú BBA shows that regional startups rose US$2.5 billion in Q3 2023.

Although a better performance than what was registered in the first half of the year, the figure represents a 26% slump Y-o-Y.

Biotech was the leading sector in the quarter, with US$500 million raised. It was followed by e-commerce (US$400 million) and fintech (US$300 million).

Equity financing was the most popular funding type, with US$1.5 billion raised, up 13% Y-o-Y.

Brazil accounted for the lion’s share of funding, with US$1.5 billion raised in Q3 2023, followed by Mexico (US$500 million) and Colombia (US$200 million).

The tech startups that raised significant amounts of money during the three-month period include Digibee, a Brazil-based digital integration platform, and Chilean mining technology startup Ceibo.

Data released by consulting firm TTR shows an enormous growth in funding activity in the tech sectors of Colombia and Argentina. There have been as many as 32 transactions in Colombia so far this year. Argentina’s software services industry recorded 23 deals in the first nine months of the year.