Surging venture capital investment in Latin American startups has financed international expansion across the region and beyond, as business models that do not require large amounts of capital have helped many firms avoid silos common in the region.
New venture capital funding in the region quadrupled over two years to a record $2 billion in 2018, according to the Association for Private Capital Investment in Latin America. And that total has already been matched in the first seven months of 2019.
Analysts say fundraising rounds this year could double 2018’s total, thanks to Japan’s SoftBank Group Corp (9984.T), which launched its $5 billion Latin America fund in March, the region’s biggest-ever venture capital deployment.
SoftBank’s investments this year have helped to mint a new wave of Latin “unicorns,” or tech startups valued at more than $1 billion, with high expectations hinging on their potential beyond their headquarter countries.
Reporting by Tatiana Bautzer; Additional reporting by Carolina Mandl; Editing by Nate Raymond and Grant McCool via Reuters
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