Venture Capital in LATAM

I'm not an expert on Latin America but was there last year and was curious on what the community thinks of venture capital industry, especially in early stage tech investing in LATAM... thoughts on particularly emerging markets such as Mexico, Brazil, Chile and the ones that are just growing such as Colombia, Argentina and Peru? Will it ever get big to matter? Spanish is the 2nd most common language after all.

What are the risks/down falls of setting up a fund or even working at a fund in LATAM? thoughts on exits (issue on the lack of IPO... LevFin opportunities might be limiting)? What are the most promising countries in LATAM becoming a robust "tech hub" and lastly what technology sector will be the forefront (fintech, consumer, eCommerce, AI/Data...) in terms of deals and scalability into other LATAM countries and possibly eventually the rest of the world?

 

Interesting question, I am not in the VC industry however I do work in the Latam space. So I would be interested in what others can add.

Latam is severely underbanked, the majority of the population still does not even own a bank account or a credit card yet, however this is changing. The middle class is growing while the average age of the population is lower than elsewhere in the world. This will translate into higher demand for banking services, thus grown in the fintech space, going forward.

Latam has had a four to five year bear market just ended earlier this year, and ever since then the Latam assets (both equity and bonds) have been among the best performing ones in the world.... I would imagine the growing investor interest in the region can only help expand the VC activities.

 
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