Latin America Venture Capital Report 2026

View report

The fourth edition of the Latin America Venture Capital Report, produced by Cuantico VP in collaboration with Startuplinks, confirms that venture capital in the region has entered a phase of “more money for fewer startups.” The report, which brings together two perception indexes, an efficiency index, and activity metrics for the region, shows an investment rebound, an agenda shaped by exits, and the consolidation of Chile, Uruguay, and Brazil as leaders in the regional VC ecosystem. 

Investors: cautious optimism and a focus on exits

The Latam VC Confidence Index (LVCI), based on a sample of more than 100 investors (VC funds, angels, CVCs, and family offices), depicts a market at an inflection point.

• The 58% reports a medium-high level of confidence for the next 6 to 18 months, and 47.2% plan to increase their investment activity in 2026, with an additional 7.2% anticipating a significant increase.
• Perceptions of the fundraising environment remain subdued: 49.2% see it as “neutral” compared with the previous year, and only 6.4% expect a clear improvement.
• Most agree that there is no longer a uniform “market price” across the region: 37.3% consider startup valuations fair, 36.5% see them as overvalued, and 21.4% as undervalued.

The 62.7% rates the exit environment as unfavorable and identifies the main risks for 2026 as a lack of exits (73.8%), political instability (57.1%), and LP retrenchment (44.4%). “Investing in Latin America is less expensive in relative terms, but capital has learned that it cannot ignore the political context or the quality of returns”, warns Jose Kont, executive director of Cuantico VP.

Founders: longer cycles, but strong confidence in their own growth

From the entrepreneurs’ perspective, the Startuplinks Confidence Index captures the perspectives of 49 founders who have already raised capital (55% at pre-seed, 33% at seed, and 12% at Series A).

• 53% rate the fundraising environment as unfavorable or very unfavorable, and fundraising processes have taken longer.
• 30.6% are still in the process of closing their round, and among those who have already closed, 24.5% took between 6 and 12 months.
• Despite the environment, internal confidence remains high: 53.1% describe themselves as “very optimistic” about their startup’s growth.
• 51% plan to raise a round in the next 12 months, confirming that VC equity remains the main driver of expansion.

Founders’ main concerns are the scarcity of exits (49%), low participation by local institutions (46.9%), and political instability (38.8%). “The message is clear: capital is available, but accessing it requires more time, more traction, and a stronger narrative than before”, explains Israel García Ballesteros, CEO of Startuplinks.

Exits: US$4,900 million and a much larger hidden market

The report finds that exits by VC-backed startups reached US$4,900 million in 2025, an increase of 172% over the US$1,800 million in 2024, with virtually the same number of transactions (63 vs. 62). This means the average deal size tripled. Including the broader private equity and growth ecosystem, the report identifies at least US$6,100 million in liquidity across 15 disclosed transactions, as well as 55 additional deals with undisclosed amounts, suggesting the actual market could be up to four times larger than what is visible.

Among the main trends, M&A accounts for 67% of exits, followed by secondary transactions (27%). In terms of transaction profiles, nine out of ten M&A deals involved strategic buyers. Two deals—the acquisition of Despegar by Prosus (US$1,700M) and Securitize’s exit via SPAC (US$1,250M)—accounted for nearly 48% of the value of the largest exits. Cases such as Vercel, Plata, Contabilizei, and Omie show that secondary transactions and partial liquidity in growth rounds are here to stay.

‍“According to the data, we see that the lack of liquidity in Latin America, far from being a flaw in the industry, acts as a mechanism that protects and generates long-term value in the face of public-market volatility.” concludes Kont. 

More capital, fewer rounds, and greater selectivity

Aggregate investment data confirms a selective VC rebound in the region. In 2025, US$4,126 million was invested across 681 venture capital rounds in Latin America, representing a 13.8% increase in capital deployed compared with 2024. The average round size grew from US$5.2 million to US$6.1 million, reflecting the return of capital under much stricter criteria. Brazil and Mexico account for 78.5% of investment (US$2,032M and US$980M, respectively), while fintech accounts for 29% of deals and 61% of capital, driven by mega-rounds in companies such as Mexico’s Plata and Klar.

By contrast, pre-seed contracted 40% in capital and 39.4% in the number of deals, reaching one of its lowest levels. Despite the tougher environment, 15 new VC funds emerged and raised US$761 million, an increase of 131% compared with 2024, demonstrating LP confidence in the 2026-2028 cycle. “In 2025, capital returned, but it is no longer willing to pay any price or bet on just any company”, sums up Israel García.

An ecosystem coming of age

The conclusion of the Latin America Venture Capital Report is that the ecosystem is in transition: less euphoria, more discipline; fewer rounds, larger rounds; less focus on headlines, more focus on returns. The exuberance of 2021 and the contraction of 2022-2024 are behind us. The recovery is real but selective, liquidity is being built through M&A and secondary transactions, the next cycle will be driven by applied science, and Latin America remains an asymmetric bet for global VC, with more rational valuations, more disciplined founders, and an attractive gap between perceived risk and real opportunity. “Latin America is no longer just a fashionable narrative; it is a structural thesis for global VC. The coming years will be shaped less by the volume of rounds and more by the quality of outcomes”, concludes Jose Kont.

View report

Launch recording: Latin America VC Report 2026

Sponsors and partners venture capital report 2026