Nearshore Americas

SoftBank to Give LATAM Tech Startups Another Shot

SoftBank, the Japanese investment giant, is signaling renewed enthusiasm for Latin American startups.

Juan Franck, managing partner of the SoftBank Latin America Funds, told Bloomberg that the reduced valuations of some promising startups had created an opportunity for reinvestment.

SoftBank’s recent exit from the Brazilian fintech Pismo, acquired by Visa, freed up capital for reinvestments. The company hopes to capitalize on other successful past investments in the coming months.

SoftBank, which has already invested nearly US$8 billion in Latin American startups, plans to refocus on the tech sector.

Alex Szapiro, regional head at SoftBank, told Reuters that successful exits from its Latin American startup portfolio could increase from 2025 onwards. He cited several positive factors like nearshoring in Mexico, stronger currencies, a more stable political climate and falling interest rates.

Szapiro anticipates to direct 70% of new capital towards existing portfolio companies, demonstrating confidence in their potential. The remaining 30% will be allocated to promising new ventures.

Sign up for our Nearshore Americas newsletter:


Venture capital investments in Latin America have slowed down significantly since 2021. Rising borrowing costs in the United States and increased investor selectivity dampened enthusiasm.

The situation even caught up with companies in SoftBank’s portfolio, leading to layoffs and restructuring among some.

Narayan Ammachchi

News Editor for Nearshore Americas, Narayan Ammachchi is a career journalist with a decade of experience in politics and international business. He works out of his base in the Indian Silicon City of Bangalore.

Add comment