Latin America's venture capital scene has evolved fast. While funding has come down from the record highs of 2021, investment remains strong, hitting $4.2 billion in 2024 ' up 27% from the previous year. The region's large unbanked population and cash-dependent economies allowed for massive opportunities for fintech solutions when physical banking became difficult. The number of fintech startups doubled between 2018 and 2021 and attracted a record VC investment of over $6 billion in 2021. Other factors have also progressed Latin America's VC market, including the gradual decoupling between the U.S. and China. With similar time zones, shorter supply chains and reduced logistical complexity, Latin America offers the 'nearshoring' advantage U.S. investors are looking for. This supports why the U.S. has remained the region's largest investor, contributing 33% of LatAm's total investment in 2023. Spain also shows a dedicated interest, funding 11% of the total investment and promoting...
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