LATAM Startups Raised $5.7 Billion in VC Funding in 2023

Latin American startups secured US$5.75 billion in funding in 2023 despite a significant slowdown in venture capital funds elsewhere.

According to a joint study by SlingHub and Itaú BBA, Brazil led the region, attracting 54% of the total capital invested.

Mexico followed closely behind with 25%, and Colombia captured 11%. A significant portion of this funding went towards first-time fundraisers, with as many as 450 startups securing their initial round of investment.

Fintech emerged as the dominant sector, raking in 54% of all funding in the region. This dominance highlights the growing demand for innovative financial solutions in Latin America.

While the report identified only one unicorn emerging in the region during 2023, it also pinpointed a significant opportunity within the biotech sector. Investments in biotech companies skyrocketed by over 600% in 2023, suggesting a promising future for this field in the region.

While LATAM enjoyed a robust US$8 billion fundraising year in 2021-22, largely fueled by the policy of low interests applied by the US Federal Reserve in response to the COVID-19 pandemic, the outlook for 2024 appears less certain.

Itau BBA, acknowledging the potential difficulties in the venture capital landscape, remains “cautiously optimistic” about the months to come.