Latin American Startup Funding Trends in Q2: Insights and Analysis
Latin American startups have been making waves in the investment world, with a total of 240 funding rounds in Q2 amounting to a whopping US$2.2 billion. This data comes from the latest monthly report by SlingHub and Itaú BBA, showcasing the region’s growing entrepreneurial ecosystem.
Despite a 10% drop in the number of funding rounds compared to the previous year, there was a significant 78% increase in total funding. The median round size was reported to be US$1.6 million, with pre-seed rounds being the most common.
Brazil led the way in terms of both the number of rounds (60%) and total funding (54%), followed by Mexico (12% and 20%) and Argentina (8% and 18%). Brazilian startups saw a remarkable 160% year-over-year increase in the amount raised in Q2.
Some standout mentions include Brazilian fintechs CloudWalk (US$308 million) and Celcoin (US$120 million), as well as Argentine deep tech company Vercel (US$250 million), according to SlingHub’s founder and CEO João Ventura.
In addition to the funding rounds, mergers and acquisitions (M&A) activity also saw a 32% increase year-over-year, with 49 deals taking place in Q2.
One notable acquisition was made by Minsait Payments, a subsidiary of Spanish IT consultancy Minsait, which acquired Uruguayan payment processor Totalnet. This move is part of Minsait’s expansion plan in Latin America, following previous acquisitions in Ecuador and Chile.
Meanwhile, Brazilian software company Senior Sistemas announced its third acquisition of the year, acquiring CRM specialist Hypnobox. The deal aims to strengthen Senior’s portfolio for the construction industry.
Argentine fintech tapi secured a US$22 million series A round led by Kaszek Ventures and Andreessen Horowitz, with plans to enhance its payment technological platform for fintechs and banks in the region.
IDB Invest also made an equity investment of up to US$5 million in Mundi Insurtech Latam I, a fund focused on insurance technology providers in Latin America.
On the education front, Intel launched a program to train 1,000 women in Latin America in artificial intelligence, while Brazil’s ABDI and Colombia’s ICT ministry MinTIC announced initiatives to support industrial startups and AI-focused solutions, respectively.
Overall, the Latin American startup scene is thriving, with a flurry of funding rounds, acquisitions, and initiatives aimed at fostering innovation and growth in the region.