Data from LAVCA provides a sobering look at how Latin American startups and founders are recalibrating their strategies in response to a persistently challenging fundraising market. Check out the following chart with data as of the end of 2022.

At the seed stage, the fundraising process has been prolonged for a whopping 82% of startups. Even at the early stage, 41% have found the process taking longer than anticipated, and the later stage is not immune either, with 29% experiencing similar delays. Worryingly, a significant number of founders are choosing to sit out the fundraising cycle altogether: 67% at the late stage, 48% at the early stage, and 8% at the seed level.

Consequently, only a meager 5-10% of fundraising processes are meeting initial expectations. In this tough climate, startups are compelled to take decisive actions to conserve their resources. 34% have resorted to employee layoffs, while 28% have put a freeze on new hires.

In conclusion, the fundraising market in Latin America continues to remain tight, with no clear signs of an imminent improvement. While these numbers may seem daunting, they underline the tenacity of our startups as they navigate these challenging waters. They also serve as a reminder for us, the venture capital community, to explore innovative ways to support our portfolio companies through these tough times.