State of the Venture Capital industry in Central America in 2023

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Latin America is rapidly emerging as a key player in the global venture capital landscape, with ecosystems such as São Paulo, Mexico City, and Santiago leading the way. However, the question remains: What is the trajectory and future of venture capital in Central America?

Despite a global slowdown in 2023, the VC ecosystem in Central America is showing promising signs of growth. Historically, the region has faced significant challenges, including inadequate financial infrastructure, bureaucratic governance, and shortcomings in public services. However, visionary entrepreneurs now see these obstacles as opportunities.

Key initiatives in Central America

• Guatemala: Volcano Summit and CAFI are strengthening the ecosystem. Invariantes Fund is leading the way with its global investment thesis.
• El Salvador: The Innogen Capital fund, focused on the Northern Triangle, and the SNBX Summit are notable developments.
• Honduras: Tech4Dev and Ulua VC are improving the entrepreneurial landscape, especially in health, education, and security.
• Costa Rica: The new Danta Fund and Atta Impact Capital, along with the Caricaco Fund Summit, are key developments.
• Nicaragua: Regional Investment Connect (RIC) and Impact Hub are strengthening the ecosystem.
• Panama: Venture Club LATAM, Amador Holding, and Escala LATAM are driving the emerging venture capital scene.

These efforts have culminated in the formation of CAPCA, the first venture capital association in Central America, made up of more than 20 VCs committed to the region.

Venture capital investment volume in Central America

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