Historically, Brazil was a power in Latin America when it involves financing Venture Capital. But in the second quarter of 2025, Mexico appeared as a leader in terms of dollars collected in the region, for Crunchbase. For the first time since the second quarter of 2012, the startups of Mexico brought more dollars of ventures than their Brazilian counterparts in Latin America indicate our data.
Startups from Mexico raised $ 437 million in the second quarter, which is an increase of 85% yr -on -year and 81% quarter to the quarter. Startups about the bars in Brazil brought $ 350 million, fell by 23% yr -on -year and 14% quarter fell to the quarter.
The largest increase in Mexico – and Latin America as a whole – was announced on June 30, on the last day of the quarter. It was Rund of C series value $ 170 million for fintech startup in Mexico Bright – Considered the largest digital bank in Mexico- this valued the company for $ 800 million.
In general, the boom in the late stage and the financing of growth helped to lift the region during this era, show Crunchbase data. Startups in Latin America collected a total of $ 961 million in the second quarter in the second quarter- in the second quarter, which is an increase of 16% year-on-year and 13% in comparison with the first quarter.
In total, $ 547 million went to late stage and growth by 102% yr on yr. This is almost exactly twice as high as $ 273 million in late stage and financing of the region’s growth in the first quarter of this yr.
In retrospect, we have set a complete investment, marked in keeping with the stage, over the last 10 quarters below.
The variety of rounds fell sequentially and yr -on -year in the stages of angels, seeds and early stages. We expect that the contract with Q2 will increase barely over time, because in particular the seed rounds are widely reported weeks or months after their closure.
Contents
Late boom
While the round of Klara’s undertaking was the best financing in Latin America, it was not the only nine -digit raising of the region in the second quarter.
- PoplarStartup in Mexico, which runs a used automobile market in Latin America, Secured $ 127 million as a part of growth financing Softbank AND General Atlantic.
- New waveRio de Janeiro, a company from Brazil, developing “balanced and cheap” technologies for the mining sector, raised almost $ 120 million in financing growth conducted by Orion resources partners.
Other large offers included Chilean fintech Mine Collecting $ 48 million in Round of the A. and a Mexican e-commerce aggregator Meram $ 45 million increases.
POV investor
Financing in Latin America definitely falls in comparison with 2020-2022. However, there are investors who remain loyal to the region.
Miguel ArmazaCo -founder and general partner in New York Gilgamesh VenturesHe believes that investors who left flying were often tourists and were probably not involved in the region.
Armaz blames the reduced appetite for LP preferences for investing in the US and the lack of IPO activity in Latin America, something that predicts will improve “in particular in the next 12-18 months.” For his part, Gilgamesh is still investing in the region, he said, but admits that “a bit more activity in the US”
The company supports the startups focused only on Brazil or Mexico, because with its words “these markets have a scale to ensure the results of the size of VC.”
“However, over the past few years, we have increasingly invest in a newer category: startups designed from the first day to regional or around the world,” said Crunchbase News. “It is not surprising that many of these newer ventures are AI-Pirst, and we have already supported a number of startups oriented on AI in the region.”
Armaza also claims that the pace of investment in Latam is roughly adapted to 2019-2020 because of mainly regional investors.
“The withdrawal of some international and American investors has been partly compensated by new local funds,” he said. “Currently, the strongest founders in Brazil can completely raise their seed rounds, often in just two to three districts in São Paulo. This local force of the ecosystem is significant positive.”
Mike PackerPartner in Alexandria, Virginia Being investorsHe said his company still sees a “amazing opportunity” in the region, especially in Brazil and Mexico, but also in countries equivalent to Argentina.
“Due to the fluidity cycle and the general lack of outputs in the ecosystem, the company is trying to come up with how to think before,” said Crunchbase News. Therefore, firms are increasingly learning from other geography. For example, payment firms equivalent to Banx AND Dlocal They expand to Africa and Asia.
For his part, in the first half of 2025 Qed, he focused on the funds of seeds and series A, but also expanded his goal to cover more B.
“The best companies here look really healthy, grow quickly, are close to profitable, if they are not profitable and proved the level of scale, which gives us great comfort of the skills and market size,” he said.
Nicolas Shakesco -founder and managing partner in São Paulo PorridgeHe said that his company’s investment rate accelerated in 2025 in comparison with the previous two years.
“The evolution of the Latin American technology ecosystem in the last 25 years has been unusual – from almost nothing to a living, solid environment,” said Crunchbase News. “However, when you look at the data, the region is still massively low.”
And despite the extremely good district of Mexico, Shakes still consider that Brazil stays the largest and most mature Latin American ecosystem and that São Paulo “is probably the capital of Latin American technology.” However, porridge invests throughout the region – half of their investments are situated in Brazil, followed by Mexico, then Argentina, Colombia, Chile and the remainder of the region.
Shakes also consider that investors have not necessarily withdrawn from Latam.
“Some companies have been consistently active in Latin America for years,” he said. “Others have arrived and left, and now new ones come.”
Despite this, Shakes admitted that 2021 was a “global VC bubble”, and some investors participated at that time that they were more “tourists”.
Looking to the future, in his opinion, the resistance of the founders of Latin America is a part of what makes the region so attractive.
“They have been building variability for decades – navigating recessions, inflation, currency devaluation and regulatory swings,” he said, citing Mercadolibre AND Nubank as basic examples.
“They were both born in adversities and are now worth the total market capitalization of $ 200 billion,” he said. “Their” signal “was much stronger than any” noise “. “
Entering earlier
Brian RequarthComplementator at an early stage WidthHe said that his company has maintained the pace of investment in recent years, closing 25 offers this yr.
“It has changed that we were going even earlier,” he said. “Some of our investments are at the stage of the performance, where we support unique founders before they even landed on the thesis.”
While Latitryd stays the Agnostic sector, Requarth admits that just about every investment that the company carried out in 2025 “has a certain angle of AI.”
Like Gigalmesh and Qed, Latitud has intensively invested in Brazil, but also in firms from Mexico, Colombia and Argentina. One of the last changes in the company’s strategy is to allocate larger capital to Latin America who build firms in the USA
“We see the world-class talents from the region moving to San Francisco and start globally ambitious startups,” said Requarth. “This is a wave we bend on.”
In general, he believes that “this is the moment of re -calibration” in Latin America, “no retreat.”
He added: “For those who are close to the founders and understand the dynamics of the region, there is still a huge opportunity.”
Methodology
The data contained in this report come directly from Crunchbase and are based on the reported data. The reported temporary data is on July 3, 2025.
It needs to be noted that data delays are most clear at the earliest stages of the project’s activity, with seed funds significantly increased after the end of a quarter per yr.
It needs to be remembered that every one financing values are given in American dollars, unless otherwise marked.
Crunchbase transforms foreign currency echange into American dollars in keeping with the prevailing Spot rate from the date of financing, acquisitions, IPO and other financial events. Even if these events were added to Crunchbase long after the event was announced, foreign currency transactions are transformed at a historic spot price.
Voiceman of the financing conditions
Seed and Angel consists of rounds of seeds, preliminary seeds and angels. Crunchbase also includes rounds of undertakings of unknown series, crowdfunding equity and convertible notes of $ 3 million (similar to USD or in keeping with consent) or less.
The early stage consists of rounds of the A series and series B, in addition to other round types. Crunchbase includes rounds of undertakings of unknown series, corporate projects and other rounds over $ 3 million, and those smaller or equal to $ 15 million.
The late stage consists of the C series, series D, series E and later rounds of the undertaking of the project after “Serie [Letter]”Naming convention. Rounds of undertakings of unknown series, corporate undertaking and other rounds over $ 15 million were also included.
The increase in technology is a private round of Equity raised by a company that previously raised the “undertaking” round. (Basically each round from previously defined stages.)