According to Crunchbase data, in the second quarter of 2025, Mexico became the leader in the value of venture capital raised in Latin America. Our data shows that for the first time since the second quarter of 2012, Mexican startups raised more venture funding than their Brazilian counterparts.
Now, in the third quarter, Brazil appears to be back on top – and in a big way. Brazil-based startups raised $692 million in the third quarter, up 47% year-over-year and 92% quarter-over-quarter. Mexico-based startups brought in $126 million, down 21% year-over-year and 71% quarter-over-quarter.
The largest increase in Brazil – and in all of Latin America – was announced on September 11 Series D for $160 million round for the team from Sao Paulo Grandmother – which offers cloud management software for SMEs – which valued the company at $700 million. Partner Group managed the financing.
Overall, the boom in late-stage and growth financing has helped keep the region in fine condition yr over yr, Crunchbase data shows. Overall, startups in Latin America raised a total of $1 billion in seed-to-growth deals in the third quarter, up 21% year-over-year and 8% over the second quarter.
Of this total, $477 million was allocated to late-stage and development deals, representing a 176% year-over-year increase. However, that is a 16% decline from the $565 million in late-stage and development financing the region saw in the second quarter of this yr.
Early-stage investment increased in the third quarter, with $425 million flowing into startups, up 18% year-over-year and 48% in comparison with the second quarter.
Seed and angel investments totaled $105 million in the third quarter, up 34% from the previous quarter but down 47% year-over-year.
For perspective, we have outlined below the total investment amount, color-coded by stage, for the last 10 quarters.
Contents
Late stage boom
While Omie’s venture round was the largest financing in Latin America, it wasn’t the only nine-digit raise the region saw in the third quarter.
Other big offers included Capitalbased in Mexico Y Combinatorbacked by the digital bank, raising a $100 million Series C raising its valuation to over $1.3 billion. Partners of the Pelion venture AND Tribal capital led this financing.
Peak raised $100 million in a round he co-led: Partners of the Bessemer venture AND Cloud9 Capital. Founded in 2025, the Sao Paulo-based startup is a technology holding company that goals to amass and scale B2B software providers.
PO investor
Camila Vieirahead of brazil w Being investorssaid the quality of corporations receiving financing in Latin America currently appears “high” and “is a step up compared to the beginning of the year.”
“We have seen large rounds, a solid shift towards AI taking over, and a lot of activity in fintech, both in terms of deals and market events,” she told Crunchbase News.
“The AI hype seemed to be lagging behind the U.S. for a while,” she said, “but now we’re seeing application layer solutions being funded in addition to companies relying heavily on AI-based strategies.”
Fraud prevention and security are taking center stage amid major breaches in Brazil. Vieira cited research showing that in 2024, Brazil’s financial sector will reported R$10.1 billion (US$1.88 billion) in fraud-related losses.
“This is already increasing regulatory thresholds in Brazil and will likely result in greater scrutiny of the fintech industry,” she said.
Mexico was not excluded from the drama, with many banks struggling FinCEN Vieira noted, which could delay or postpone efforts to push fintech forward.
“On the positive side, Colombia has provided clarity on open banking and launched Bre-B, its national real-time payments network,” she added.
Rocio Wupartner in F-Primeshe said her company had been tracking the growth for a very long time alternative assetsi.e. alts, as they “become a fundamental element of a modern investment portfolio” and in the face of the subsequent increase in the variety of infrastructure players enabling their expansion.
She noted that inside “alts,” private lending is one of the fastest-growing and most missed segments.
This led to F-Prime becoming the leader Series B for $30 million round in Canala platform offering technology-enabled back-office services for alternative investments, intended to “lead the development of private credit infrastructure in Brazil.” She said that in the last 12 months alone, the company has grown by 150%, and clients include Brazil’s largest banks, investment managers, private credit funds and originators.
Generally, Diana Narvaezdirector and head of investments at LatAm Grow your venturesbelieves that Latin American founders are generally “rewriting the rules of financial innovation.”
“Fintech remains the No. 1 financed sector in the region as trust, access and agency continue to be the biggest concerns for consumers and businesses,” she told Crunchbase News. “In Latin America, entrepreneurs are innovating in an environment of limited capital and tougher consumer realities, creating solutions that are not only resilient, but transformative. This is not a story of catching up, it is a story of leapfrog.”
The company’s recent investments in the LatAm region include co-lead rounds for: Israelwhich goals to modernize payment acceptance services in Latin America, and Chimneya Sao Paulo-based platform that integrates financial management software, a native checking account and a corporate card for medium-sized corporations in Brazil. He also wrote a check for $2.1 million in the amount of $2.1 million Liquidalso based in Sao Paulo, which builds lending infrastructure in the real estate market.
The development of stablecoins
Vieira believes that “everyone still sees stablecoins, trade and other cross-border activities as a great opportunity for Latin America.”
AND stablecoin is a form of digital currency designed to keep up a stable value.
Wu is also excited about the potential of stablecoins in the region.
“We are increasingly convinced that stablecoins are the killer use case for cryptocurrencies, and cross-border payments are the perfect use case because they offer material advantages over current rails – faster, cheaper and more transparent – in a huge market,” she said.
Additionally, as regulatory clarity approaches in Brazil, the variety of locally denominated stablecoins is growing “with the promise of income-producing stablecoins and the tokenization of real-world assets,” Wu noted.
“Overall, the Latin American stablecoin market has many early entrants with fragmented liquidity, and we look forward to greater interoperability and consolidation,” she said.
Methodology
The data in this report comes directly from Crunchbase and is based on reported data. Data is from October 6, 2025.
Please note that data transfer delays are most noticeable in the earliest stages of a venture, with seed funding amounts increasing significantly after quarter/yr end.
Please note that each one financing amounts are in US dollars unless otherwise noted.
Crunchbase converts foreign currency to U.S. dollars at the spot rate in effect on the date financing rounds, acquisitions, IPOs and other financial events are reported. Even if these events were added to Crunchbase long after the event was announced, foreign currency transactions are converted at the historical spot price.
Glossary of financing terms
Seeds and Angels consist of seed, pre-seed and angel rounds. Crunchbase also includes venture rounds of unknown series, equity crowdfunding, and convertible notes with a size of $3 million (in U.S. dollars or a U.S. dollar equivalent) or less.
The early stage consists of Series A and Series B rounds, in addition to other kinds of rounds. Crunchbase includes venture rounds of unknown series, corporate ventures and other rounds above $3 million and those valued at lower than or equal to $15 million.
The Late Stage consists of Series C, Series D, Series E, and later lettered expedition rounds following the “Series [Letter]” naming convention. Also included are venture rounds of unknown series, corporate ventures, and other rounds over $15 million. Corporate rounds are only included if the company has raised seed financing as a part of a series venture financing round.
A technology development is a private equity round led by a company that has previously raised a “venture” round. (Basically any round from the pre-defined stages.)