Narayan AmmachchiVenture capital firm NXTP raised US$98 million to invest in technology startups in Latin America, signaling a renewed optimism for the region’s tech sector.
The fund’s partner, Alexander Busse, expressed confidence in the current market conditions, stating that the “calm” state of Latin America’s tech market presents an opportune moment to invest before valuations rise.
NXTP will focus on early-stage startups in Brazil and Mexico.
Over the past decade, NXTP has helped six of its portfolio companies achieve unicorn status. The firm targets startups that are digitizing business operations and incorporating innovative technologies into their workflows.
Busse told Reuters that the Latin American tech market still has significant room for growth, particularly among mid-sized companies that have yet to fully embrace technology.
NXTP Ventures, founded in 2011, maintains offices in Buenos Aires, São Paulo and Mexico City. The firm typically invests between US$500,000 and US$5 million per startup, with a focus on early-stage companies. Its portfolio includes notable unicorns such as Auth0, TiendaNube, Mural, Frete.com and Betterfly.
While venture capital funding into Latin America experienced a decline in 2023 compared to the boom of 2021, NXTP’s latest fundraising signals a resurgence of investor confidence in the region’s tech potential.
In the third quarter of 2023, startups in Latin America received US$700 million in new funding, according to Crunchbase. In contrast, the region witnessed a staggering $13 billion invested in early-stage companies in 2021.
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