Characteristics of LATAM’s Early-Stage Investment Rounds in 2023

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Disclaimer

This report was created by Startuplinks using only information from its users, so the information presented may be biased toward the profiles of founders who use Startuplinks.

Additionally, this report was created for the informational and research purposes of our users. We do not recommend using the figures presented here as a guide or recommendation for your investment round strategy.

Early-stage round sizes and valuations in LATAM

In 2023, Latin American startups were looking to raise capital at a cap valuation that, across different stages, compared with the amount they aimed to raise, resulted in the following dilution percentages by stage:

1. Pre-seed: 540K/5.8M = 9.3%
2. Seed: 1.7M/8.2M = 20%
3. Late-seed: 2.6M/19.1M = 13.6%

Will we see valuations and round sizes rise in 2024?

Startup team size in Latin America by stage

Undoubtedly, the team is one of the most important factors in a startup’s success. However, it can also be the reason a company fails. This chart shows the average team size, including full-time and part-time employees, at startups across various Latin American countries and industries.

Based on our experience, we recommend that founders aim for the following team sizes at their startups:

1. Pre-seed: Fewer than 8 people, to stay agile and able to pivot and test during execution, without losing focus on building a culture with the first employees.
2. Seed: A maximum of 15 people. Having more than 15 people likely points to inefficiencies in the company’s tasks and operations.
3. Late-seed: More than 20 people. The range definitely widens here because the company’s financial sustainability does not depend entirely on 100% investment, but also on revenue, which could allow the company to operate with as many as 50 people at this pre-Series A stage.

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