Latin American startup investment closed 2024 in the positive, with the fourth quarter delivering the highest total funding of the 12 months.
Overall, investors committed $4.2 billion to the region’s seed and growth phases in 2024. This means an increase of 27% in comparison with the previous 12 months.
However, even with these increases, funding stays well below the peaks reached in 2021 and early 2022. Meanwhile, last 12 months was a historically weak period for enterprise investing in Central and South America.
For perspective, below we have compiled total investment amounts, color-coded by stage, for the last 12 quarters.
Contents
A fintech-driven recovery
Fintech was by far the dominant sector for startup investment in Latin America each in the fourth quarter and overall in 2024, with the lion’s share of the largest rounds going to firms in this space.
For example, in the fourth quarter, the largest enterprise funding was $300 million E series for a neobank based in Buenos Aires Uala. The next largest was a $133 million Series C for Brazil Foundationonline business account provider, followed by a $125 million enterprise round for one other Brazilian company, Bookkeepingaccounting platform.
The strong position of the financial sector could be seen in the chart below showing the 13 largest enterprise rounds in Latin America this 12 months.
Digital commerce was one other dominant topic for startup funding in 2024. Two Mexican firms were among the top fundraisers last 12 months: Clipprovider of payment terminals and applications for merchants, which raised $100 million, and OCNan electric vehicle subscription service for rideshare drivers that raised $86 million.
Brazil leads in startup financing on account of late-stage gains
By far the largest recipient of investments in start-ups in the region in 2024 was Brazil, which obtained almost half of the funds. Mexico was next, accounting for about one-fifth of all investment, followed by Argentina, Colombia and Chile.
In most geographic areas, funding levels have increased 12 months over 12 months. However, investments in individual stages fluctuated significantly from quarter to quarter.
Particularly in the fourth quarter, late-stage financings delivered gains, with investments reaching a five-quarter high, as shown below.
Meanwhile, in the fourth quarter, the level started off weaker and actually reached its highest level of the 12 months in the first quarter, as shown below.
Exits ahead?
The past 12 months was not particularly fruitful in terms of IPOs and large acquisitions of venture-backed startups in Latin America. However, given the significant variety of well-financed, relatively mature firms in fintech and other fields, there is hope that activity will rebound in 2025, especially if the IPO market shows renewed signs of life.
For now, it’s encouraging that the worst of the post-peak economic crisis could also be behind us, and startup financing in Latin America has been on the rise each in the last quarter and throughout 2024.
Methodology
The data in this report comes directly from Crunchbase and is based on reported data. The data provided is from January 3, 2025.
Please note that data transfer delays are most noticeable in the earliest stages of a enterprise, with seed funding amounts increasing significantly after quarter/12 months end.
Please note that each one financing amounts are in US dollars unless otherwise noted. Crunchbase converts foreign exchange 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, 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 covers enterprise rounds of unknown series, equity crowdfunding, and convertible notes valued at $3 million (USD or converted USD equivalent) or less.
The early stage consists of Series A and Series B rounds, in addition to other forms of rounds. Crunchbase includes enterprise 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 enterprise rounds of unknown series, corporate ventures and other rounds valued at greater than $15 million. Corporate rounds are only included when a company has raised seed financing as a part of a series enterprise 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.)