Characteristics of early-stage venture capital funds based in LATAM in 2023

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Disclaimer

This report was created by Startuplinks using information solely from its investor community, so the information presented may be biased toward the profile of Startuplinks community investors.

Additionally, this report does not include information from Brazil or any investment fund whose headquarters are located outside Latin America. The profile of the investment funds registered on Startuplinks ranges from pre-seed to Series A.

Average size of investment funds whose primary location is in LATAM

Industries of interest to venture capital investors in Latin America

More than 40% of investment funds in Latin America are sector-agnostic, followed by 36% of funds interested in fintech.

Fintech will undoubtedly continue to be the industry of greatest interest in the coming years. However, it is impossible to ignore the growing number of investors showing interest in new verticals such as climate tech, food tech, biotechnology, and energy. This comes alongside the strong presence of SaaS in recent years, and it will remain a business model that attracts attention for its strong scalability and clear investment metrics.

Which “new” industry will make it into the top 5 by the end of 2024?

% of investors who can lead rounds

Contrary to what one might think, most institutional investors in Latin America have the ability and interest to lead a round. However, at Startuplinks, we’ve seen that a large percentage of founders fundraising struggle to find a lead investor. What is the main reason founders have trouble finding a lead investor?

How many companies does an investment fund review and invest in each year?

• On average, an institutional investor in Latin America received 463 startup pitches in 2023.
• On average, an institutional investor in Latin America invested in 6.5 startups in 2023.
• On average, an institutional investor invested in 2% of the deals it reviewed in 2023.

Depending on your industry and business model, you’ll be competing with more startups for investment and investors’ attention. At Startuplinks, our most important advice for increasing your chances of raising investment is always this: raise money professionally and strategically.

In other words, follow a defined process that has already worked for someone else, and regularly adjust your strategy. You should also study how venture capital works beforehand. Here are some tips shared by founders who raised +$1M USD and a course on fundraising.

Profile of early-stage institutional investors in LATAM

70% of institutional investors in Latin America are venture capital funds.

This data undoubtedly opens up the possibility of encouraging the creation of other types of investment institutions, such as CVCs, angel clubs, and family offices interested in the venture capital asset class.

Acknowledgments

‍We thank our institutional investor community for placing their trust in Startuplinks and actively participating in Latin America’s most important community of institutional investors focused on venture capital below Series A.

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