The future is bright for Latin American startups

By Sarah Birke

Startups have been a bright spot for Latin America in recent years. The number backed by venture capital more than doubled between 2020 and 2023 to over 2,500, according to LAVCA, an association for regional investors. In 2021 Latin American startups attracted around $16bn in investment, roughly as much as in the previous ten years combined.

Startup activity exploded during the pandemic. As elsewhere, people confined to their homes wanted to shop, consult doctors and much more without leaving the house. Many existing firms did not have online portals, or at least not user-friendly ones. It helped that SoftBank, a Japanese investment behemoth, had launched its first fund for Latin America in 2019, worth $5bn. Other funds followed suit.