LatAm Tech Venture Capital Rebounds as Investors Prioritize Quality

Latin America is experiencing a notable rebound in technology and startup investments, with figures indicating a 37% increase for 2024. The total investment volume reached an impressive US$8.7 billion, largely attributed to Brazil, which alone accounted for 57% of this value, according to data from Sling Hub and Itaú BBA.

Investment Trends in Latin America

The “Latin America Venture Capital Report 2025” highlights a decline in exit volumes, with approximately US$1.9 billion recorded in 2024—the lowest in recent years. However, the trend seems to be reversing in 2025, as investors prioritize quality and stability over sheer volume following a period of adjustments.

Significant Metrics from Brazil

• In the first half of 2025, investment volume in Brazil was US$1.25 billion, just over half of the previous year’s total.
• From January to the third quarter of 2025, the region saw 2,118 transactions, totaling US$78.1 billion, a 24% increase year-over-year.
• Brazil led the way with 1,303 deals, mobilizing over US$37 billion in capital, marking a 5% increase from 2024.

By October 2025, TTR Data reported 1,475 transactions in Brazil, totaling R$218.4 billion. This showcases a 5% increase in transaction numbers and 2% growth in capital mobilization compared to the same period in 2024.

Sector Highlights and Major Investments

According to TTR and ABvcap, the third quarter of the year saw significant investments concentrated in the information technology and financial sectors, which captured over 80% of the resources. Noteworthy transactions include:

• QI Tech: R$350 million fundraising round led by General Atlantic and Across Capital.
• NG.Cash: R$147 million secured from NEA (New Enterprise Associates).

Mergers and Acquisitions Activity

M&A activity in Brazil remains robust, with a notable merger on November 4, when Indicium merged with Mesh-AI to form Indicium AI. This new entity specializes in data and artificial intelligence (AI) and aims to expand globally.

Founded in Santa Catarina in 2017, Indicium has grown into one of the largest data firms in Latin America, having previously secured US$40 million in a Series A funding round in May 2024 from Columbia Capital.

Expanding Startups and Innovations

Several other startups are making headlines in Brazil:

• PX Center: Secured R$250 million in funding to enhance its operations and expand to North America.
• SumUp: Raised R$850 million through an investment fund to boost payment processing solutions for micro and small enterprises.

In Chile, the ISCI is seeking investors for its PatagonIA AI platform, developed to cater to the nuances of Chilean Spanish. The platform uses advanced infrastructure from Oracle Cloud and Nvidia GPUs.

Investment Expansion in Other Countries

Colombian fintech R2 received backing from Singapore’s Ant Group to grow its lending solutions. Meanwhile, in Argentina, The Mobile-First Company successfully completed a US$12 million funding round, aiming to expand its AI services.

These developments illustrate a vibrant landscape for startups and investors in Latin America, reinforcing a trend of resilience and a focus on quality in the venture capital space.