The global venture capital landscape looks quite depressing at this point in time, but fortunately, we’re seeing new and encouraging signs of life in select markets.
Europe is one such market, given that the value of venture deals on the continent has been steadily crawling higher this year. Latin America, new data indicates, could be another.
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We should note that while some of the data about Latin America, sourced from startup data providers focused on the region Sling Hub and Distrito, illustrates a few positive trends, other data points in a more negative direction. We cannot say that Q3 2023 has been a great time for startups — even when squint and focus only on a small collection of countries. Far from it.
But any good news is worth the attention at a time when the American IPO window has shut down again, venture activity is slowing, and global tensions are running high as conflicts burn around the world. So this morning, we’re looking at what’s good and what’s not so good in the Latin American venture market.
Investors are tip-toeing back into Latin America
According to data from Sling Hub & Itaú BBA, Latin American startups raised $2.5 billion in the third quarter of 2023. Equity funding made up $1.5 billion of that total — that’s notable because Sling pointed out that overall funding, inclusive of non-equity capital, was down 26% in the year by its calculation, while equity-based fundraising actually ticked up 13% compared to a year earlier.