Tag Archives: startups

Venture Capital in Latin America Shows Signs of Recovery Heading into 2025

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The Latin American venture capital market demonstrated resilience in 2024, stabilizing after the dramatic peak of 2021 and subsequent correction. According to LAVCA’s latest industry report, venture capital investment in the region reached $4.5 billion dollars across 751 deals, marking a moderate 8% year-over-year increase and signaling that the market adjustment phase may be behind us.

Investment Levels Holding Steady

Deal activity remained robust, particularly at the seed and early stages. The total number of deals was significantly higher than in 2019-2020 at similar investment levels, indicating that investors are deploying capital more cautiously and in smaller amounts. While early-stage funding remained a crucial driver, late-stage investment also made a comeback, surging to $1.6 billion—a 55% year-over-year increase—thanks to renewed international investor interest.

Combined bar charts showing venture capital investment trends in Latin America from 2019 to 2024. The first chart illustrates total capital deployed and deal count over time, while the second chart breaks down investment by country, highlighting Brazil and Mexico as the top recipients.

Source: LAVCA. Data as of 31 December 2024
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Navigating Tariff Turbulence for Startups

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Team of young professionals reviewing documents and maps around a table.

In his first weeks in office, President Trump announced new tariffs of 25% on all Mexican imports—along with similar measures for Canadian goods. This threat was quickly put on hold for 30 days, contingent on Mexico’s implementation of specific programs aimed at reducing illegal immigration and drug trafficking across the Mexico–U.S. border. If these tariffs are ultimately imposed, there’s a strong possibility that Mexico will respond with its own duties on U.S. imports. This back-and-forth has created significant uncertainty for businesses on both sides of the border, potentially affecting the rest of 2025. While the impact on traditional import/export operations is evident, it may seem less pressing for tech startups.

However, tariffs don’t just affect direct trade—they can also trigger significant currency fluctuations. For instance, new tariffs could drive a depreciation of the Mexican peso, which would raise costs for any startup importing materials or services priced in dollars—even if those imports aren’t coming directly from the United States. Startup founders should begin taking defensive measures now to avoid unexpected fallout.

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Startup Success: Only 50% Reach Series A Funding

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Only 50% of startups make it from Seed to Series A, based on Carta’s data from 12,388 startups (2018–2023). The numbers show a clear trend: most startups that succeed in raising a Series A do so within 4 years. After that, graduation rates plateau.

The data also reveals a notable market shift: success rates declined following the market adjustment in Q3 2021, and it’s still uncertain when—or if—those earlier figures will return.

Carta chart: about 50% of startups that raised a seed round reach Series A, and graduation rates plateau after year 4 (12,388 startups, Q1 2018 to Q3 2023).
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Latam Climate Startup Radar: Mapping 400+ Innovators

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We are excited to announce the release of the latest Latam Climate Startup Radar, a comprehensive mapping of over 400 startups across Latin America. This edition, unveiled at the recent second edition of the Latam Climate Innovation Summit organized by my fund Dalus Capital, reflects a 55% increase in startup representation, underscoring the region’s rapid growth in climate-focused innovation.

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Join Us at the Latam Climate Innovation Summit 2024

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Following the tremendous success of our inaugural summit two years ago, we’re excited to bring you the Second Edition of the Latam Climate Innovation Summit! 🌍

Latam Climate Innovation Summit 2024 flyer, September 18 in Mexico City, powered by Dalus Capital, with partner logos.
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The Venture Capital Climate in 2023: Latin America’s Market Correction

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The latest venture investment data from LAVCA reveals that the venture capital scene in Latin America saw a considerable adjustment in 2023. Total investments fell to $4 billion, a sharp decline from $7.9 billion in 2022 and a significant drop from the unsustainable $16 billion peak in 2021. The deal count also took a dip, with transactions decreasing to 770 from 1,158.

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Mapping Green Frontiers: The Next Edition of Our Latam Climate Innovation Startup Radar 🌿

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Two years ago, we launched the Latam Climate Innovation Startup Radar 🌍, aiming to spotlight the vibrant ecosystem within our region and, hopefully, foster its growth. Today, I’m thrilled to announce that our Startup Radar has received a significant upgrade! We have reached almost 300 startups🚀!

At Dalus Capital, we’re firm believers in the transformative power of innovation, especially when it’s directed toward our planet’s well-being 🌱. That’s why we’ve dedicated time and effort to enhance our Climate Innovation Startup Radar.

In this edition, we’ve refined the radar’s taxonomy, introducing key improvements to sharpen its precision and relevance. Moreover, we’re transparently sharing the logic and insights behind each category. From cutting-edge technologies to intelligent sustainable solutions, we’re revealing it all 🧠.

Of course, in a field as dynamic and expansive as climate innovation, it’s possible we might have overlooked some remarkable startups. If that’s the case, please reach out. We’re eager to include any we’ve missed in our upcoming edition. Join us on this pivotal journey to combat the existential threat of climate change! Your involvement is crucial. Together, we can build a strong, supportive ecosystem for these startups to flourish 🌿.

Dive into the Latam Climate Innovation Startup Radar here: https://docsend.com/view/32us2m3aqxmgvv5b

Discover our latest thinking on the refined taxonomy here: https://bit.ly/3U12SiG

Have suggestions or want to add a startup? Let us know here: https://bit.ly/3ktvP7v

To delve deeper into Climate Innovation in Latam, visit: latamclimatewiki.com

Dalus Capital Latam Climate Innovation Startup Radar

Latin American Startups Navigating Tough Fundraising Waters

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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.

LAVCA chart showing how Latin American founders adjusted to market conditions in 2023: longer fundraising processes and cost cuts such as layoffs and lower spending.
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Weathering the Storm: A Peek into LAVCA’s Q1 2023 Startup Investment Climate

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The Latin American Private Equity & Venture Capital Association (LAVCA) has just dropped its Q1 2023 report on investment activity in Latin America, and it’s not painting a pretty picture. Reflecting what many of us have been witnessing firsthand on the ground, the serious dip in startup investment that began at the end of 2021 is still present in the first quarter of 2023, dropping to a meager $0.8B dollars from the impressive but unsustainable $5.2B peak in Q3 2021.

LAVCA chart of quarterly VC investment in Latin America by stage, Q1 2020 to Q1 2023: USD 0.8 billion in Q1 2023, supported by venture debt.
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White paper: Sostenibilidad para Startups

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Les comparto este white paper sobre Sostenibilidad para Startups, creado por el Global Reporting Initiative (GRI), en el cual colaboré. El documento enfatiza la necesidad de integrar la sostenibilidad en el modelo de negocio y la estrategia de una startup y destaca los beneficios de hacerlo. Los puntos claves del documento:

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