Venture capital funds poured a staggering US$4.6 billion into Latin American startups in 2019, with Brazil pocketing a large slice of the investment.
This is more than double the US$2 billion received during the previous year, according to the Latin America Private Equity and Venture Capital Association (LAVCA).
With US$2.49 billion in VC funding, Brazil accounted for more than 54% of the investment in the region. During the period, more than 200 of its startups closed deals with a range of venture capital funds, including the likes of Softbank. This Japanese conglomerate has set aside billions of dollars for Latin America.
Despite the weak economic climate, Mexico turned out to be the second biggest winner of venture funds last year, with around 100 of its startups securing a total of $649 million.
As usual, the financial technology sector collected a lion share of the investment. These days, venture funds have started placing bets on logistics and distribution firms as well, says the New York City-based association.
In the fintech sector, Creditas set a record of sorts by raising US$231 million. In the logistics sector, Sao Paulo-based Loggi made headlines by securing US$150 million from a group of investors led by SoftBank.
Argentinian fintech startup Ualá secured US$150 million from SoftBank and China’s Tencent.
Not just startups, LatAm-based venture capital funds also raised a record US$1.8 billion during the period. Buenos Aires-based Kaszek Ventures alone raised more than US$600 million.