Falling venture capital investment in LatAm startups could hamper digital growth

There are reasons to be optimistic for the region, so why are investors slowing down?

This column is fascinated by Latin America, a region of the world rich in history, culture and, recently, a massive boom in the creation and financing of technology companies. The period of rapid growth in venture capital activity is, however, slowing down. Quick.

The decline in capital availability, as far as TechCrunch can see, will not prove fatal. However, they could slow the pace at which Latin American economies digitize and mature. Data from Atlantico – a regionally focused venture capital fund and Canary’s sister company, which invests in early-stage Latin American rounds – indicates that there may be enough local capital in the region to guarantee that its national startups have a chance of perseverance.

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That said, it is perhaps slightly disappointing to see capital from other regions pulling out of Latin America, given some encouraging signs from the region that venture capital investment is having a big impact.

If we are to have a global economy, and if we are to hope that accelerated capital formation is something any region can benefit from, then we must also expect that technological prowess is not – and should not be. not – be limited to only part of the world geography. . This means that Latin America may need startups to help the region compete with other markets. And that means more venture capital over time, not less.

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