- The State of the Global Startup Economy
- Ecosystem Lifecycle Analysis
- Global Startup Ecosystem Ranking 2022 (Top 30 + Runners-Up)
- Rankings 2022: Top 100 Emerging Ecosystems
- Global Startup Sub-Sector Analysis
- Why Founders Should Be Open and Direct About Their Values
- What You Need to Know Before You Start Fundraising
- Diversity in Startups: When it Helps and When it Hurts
- Three Essentials To Creating a Strong Sense of Community in Emerging Ecosystems
- How to Get Mentoring Right
- Europe Insights, Rankings & Ecosystem Pages
- London’s Tech Scene: A World-Class Ecosystem Competing on a Global Scale
- Discover Portugal: An Unbeatable Value Proposition for Startups
- How Startups are Creating a Future-Proof Economy in Rotterdam
- North America Insights, Rankings & Ecosystem Pages
- Local Connectedness Is Driving Indiana’s Thriving Startup Ecosystem
The Global Startup Ecosystem Report 2022
Latin America Insights, Rankings & Ecosystem Pages
Latin America was the fastest growing region in the world in terms of venture funding in 2021, according to Crunchbase. An estimated $19.5 billion was invested in the region, more than triple the prior year’s already record-setting levels, and there were 300% more exits over $50 million in 2021 than in 2020. Fintech, transportation and logistics, and e-commerce are largely driving this growth.
As in much of the world, the COVID-19 pandemic catalyzed the decentralization of startup ecosystems in Latin America. While São Paulo remains the region’s major hub, there are increasing amounts of startup communities throughout Brazil and elsewhere in Latin America, with significant activity springing up in Curitiba, Porto Alegre, and Belo Horizonte, as well as Santiago and Guadalajara.
Justos, a São Paulo-based insurtech, raised both a $2.8 million seed round and a $35.8 million Series A in 2021, and the same ecosystem also produced the region’s highest exit that year — Nubank’s $41.5 billion IPO. Overall, Brazil In 2021, saw 237% growth in the dollar amount of Series B+ rounds compared to 2020 and its total exit amount for 2021 was $49 billion, a huge leap from $1 billion in 2020. The Brazilian government has shown its support for startups through the June 2021 introduction of the Legal Framework for Startups, which includes provisions for a “regulatory sandbox” that frees companies from some constraints as they experiment with innovative technologies and business models.
Mexico City’s e-commerce startup Valoreo secured both $50 million in debt and equity and a $30 million Series A in 2021. The company plans to acquire other Latin American e-commerce startups with a long-term goal of improving the region’s consumer options.
While the region remains far behind North America and Asia in its share of global Ecosystem Value, Latin America is growing at an impressive rate.
Key Findings
Latin America experienced a 128% increase in early-stage funding from 2020 to 2021.
The region achieved over $47 billion in exits over $50 million, an astounding increase from below $1 billion in 2020.
Ranking at #28, São Paulo is Latin America’s most successful ecosystem. Its rise three places from last year is in part a reflection of it producing 12 unicorns and two $2 billion+ exits, including Fintech Nubank’s $41 billion December 2021 IPO.
In 2021, Brazil saw 237% growth in the dollar amount of Series B+ rounds compared to 2020. The nation’s total exit amount for 2021 was $49 billion, a huge leap from $1 billion in 2020.