Preliminary findings from the LatAm VC Report 2026: more capital, fewer startups
Mexico City, February 18, 2026. The preliminary findings of the Latin America Venture Capital Report 2026 show an ecosystem that is beginning to recover in terms of capital deployed, but not in the volume of deals. The 2025 snapshot is that of a market more concentrated than ever in two countries, one dominant sector, and the middle stages of the investment funnel.
Venture capital in Latin America closed 2025 with US$4.126 billion invested across 681 rounds. This represents year-on-year growth of 13.8% versus the US$3.627 billion recorded in 2024 and marks the first significant rebound after three consecutive years of correction since the historical peak of US$17.381 billion in 2021.
However, the number of rounds fell 1.9% (from 694 to 681), the lowest level since 2017, which confirms that the recovery is not being driven by deal volume, but by check size. Average ticket per deal increased from US$5.2 million to US$6.1 million (around 16% more), reflecting an environment where capital is concentrated in fewer companies with stronger traction and validation.
Brazil and Mexico: nearly 80% of all capital
The geographic dimension of the recovery is far from homogeneous. Brazil attracted US$2.032 billion across 363 deals (52.9% of regional funding), with an average ticket of US$5.6 million. Mexico ranked second with US$980 million in 86 rounds (25.5% of the total) and the highest average ticket in the region at US$11.4 million per deal, boosted by megadeals in fintechs such as Plata and Klar. Together, both countries concentrate 78.5% of all venture capital investment in Latin America.
They are followed by Chile (US$249 million, 53 deals), Colombia (US$224 million, 62 deals) and Argentina (US$172 million, 34 deals). Colombia records more deals than Chile but with smaller average tickets (US$3.6 million vs. US$4.7 million), suggesting a more active ecosystem with smaller deal sizes. Argentina maintains competitive average tickets (US$5.1 million) but with fewer rounds, reflecting macro constraints. Central America totaled US$107 million in 41 deals, while Uruguay (US$40 million, 12 deals) and Peru (US$35 million, 8 deals) remain in earlier stages in terms of venture capital volume.
Fintech leads: 61% of capital with 29% of deals
By sector, the data confirms fintech as the clear heavyweight of the region. With 29% of all deals, the category captured 61% of total funding, meaning it not only closes many rounds but also the largest ones. The three biggest deals of the year were led by Mexican fintechs: Plata (a US$250M Series B and a US$160M Series A) and Klar (a US$170M Series C).
The top 10 rounds of the year also include Kapital (Series C, US$100M), Creditas (Series G, US$108M), Ualá (Series E, US$66M) and QI Tech (Series B, US$63M). Together, the 10 largest rounds add up to US$1.229 billion, almost 30% of all capital deployed in 2025.
SaaS consolidates as the second sector, with 13% of both deals and funding, supported by headline rounds such as Omie’s Series D (US$160M) and Canopy’s US$100M round. Logistics (5% of deals, 17% of funding) and energy (4% of deals, 10% of funding) show a deals-to-capital ratio that suggests higher tickets, linked to infrastructure‑intensive models. Healthtech and foodtech, with around 7% of deals each but smaller capital shares (3% and 4%), contribute transactional volume, but through smaller tickets.
The funnel tightens at the early stages
One of the most concerning findings for the long‑term health of the ecosystem is the sustained drop in early‑stage financing. Pre‑seed funding fell 40% in capital (from US$110M to US$66M) and deals dropped from 251 to 152, a 39.4% decline that amounts to a 77% collapse versus the 661‑deal peak in 2022. This is the lowest level since 2018 and points to a critically narrowing pipeline of new startups. Fewer companies funded today at pre‑seed means fewer candidates for seed and Series A rounds over the next 18–24 months.
As Jose Kont, CEO of Cuantico VP, puts it, “deal flow in Latin America is far from where the industry needs it to be: ecosystems are not generating enough startups, and many of those that do appear are not meeting the minimum standards the industry expects today. There is a lack of clear traction signals at early stages and of founders capable of building truly scalable companies by leveraging the AI boom. On top of that, the hangover from 2021 and 2022 is still with us: mistakes made in those years continue to weigh on the market and have made many investors far more cautious. The difference now is that the pendulum is starting to swing back: 2026 and 2027 will bring more liquidity into the region, which can reignite industry appetite.”
At the Seed Stage, funding recovered 4.7% (from US$408M to US$427M), but the number of rounds kept falling from 321 to 247, a 70.6% drop compared with the 2021 peak. Average ticket increased from US$1.27M to US$1.73M, signaling greater selectivity and larger checks for those that make it through.
In Series A, funding grew 9.3% (from US$707M to US$773M) across 72 deals, with average ticket up 32% to US$10.7M. Series B was the relative winner: capital jumped 56.8% to US$939M in 24 deals, with average ticket rising from US$24M to US$39.1M (a 63% increase).
By contrast, growth rounds (Series C and beyond) contracted 56.8%, from US$1.798B to US$777M, the lowest level for this stage since 2017. The late‑stage market remains the most heavily hit segment of the post‑2021 correction in equity terms, with fewer rounds and significantly smaller tickets than during the boom years.
Even though the report’s figures explicitly exclude venture debt, we are observing in parallel the consolidation of a venture debt market that is partially offsetting the drop in growth‑stage equity. Several operations perceived within the ecosystem as “megadeals” are in fact venture debt structures and non‑dilutive credit facilities to fund loan books and working capital, particularly in credit‑focused and BNPL fintechs. These instruments do not appear in traditional VC statistics, but have become a central pillar of the financing stack for growth‑stage companies in the region.
Exits accelerate, unicorn creation stalls
On the liquidity front, 2025 brought encouraging news. The value of VC‑backed exits soared from US$1.8B to US$4.9B across 63 transactions. Average exit size increased from US$29M to US$77.8M, indicating larger, higher‑quality outcomes. This is the third‑best year in the series, behind only 2021 (US$8.8B) and 2018 (US$7.2B), and suggests that the liquidity cycle for LPs in the region is starting to improve.
By contrast, the “unicorn factory” remains almost at a standstill. Only 2 new startups surpassed the US$1B valuation threshold in 2025, the same number as in 2024 and far from the 22 unicorns created in 2021. The regional total stands at 58 unicorns since 2017. The combination of less late‑stage capital, fewer megadeals and more demanding public markets makes it harder for companies to cross this symbolic line.
New funds and the architecture of the investor ecosystem
On the fund management side, 2025 brought improvements in fundraising. 15 new VC funds were launched in the region, raising a combined US$761M, a 131% jump compared with the US$329M raised by 11 funds in 2024. While still below the 2021 (US$3.1B, 27 funds) and 2023 (US$2.6B, 21 funds) peaks, the trend points to renewed confidence from LPs and institutional investors.
The report also maps the fund landscape by stage: a typical pre‑seed fund in Latin America is around US$10M, seed funds around US$15M, Series A funds around US$35M, Series B funds around US$100M, and Series C funds around US$125M. In a sample of 351 funds, 117 are focused on pre‑seed and 144 on seed, meaning 74.4% of funds operate at early stages. Only 8 funds are active at Series C, which helps explain the scarcity of capital for growth rounds.
In terms of ticket ranges, typical checks go from US$50k–500k (pre‑seed), US$100k–500k (seed), US$250k–1.5M (Series A), US$500k–5M (Series B) and US$500k–10M (Series C).
About the Latin America VC Report
The LatAm VC Report is our effort to provide a rigorous, actionable snapshot of the state of venture capital in the region. At Cuantico VP, we operate as a research, market intelligence and strategic visibility platform for the Latin American VC and startup ecosystem, with a clear goal: turning attention into capital.
We develop the report in partnership with Startuplinks, a platform that maps, organizes and connects startups, investors and key ecosystem players across Latin America. Startuplinks contributes data and technology infrastructure to capture and structure market information, transforming it into useful decision‑making tools for founders, funds and other stakeholders.
The full results of the Latin America VC Report 2026 will be presented at an exclusive event for investors, GPs, LPs and founders in the region on March 5, 2026. During the session, we will share the final findings, unveil for the first time the LatAm VC Confidence Index and the Startuplinks Founder Confidence Index, and discuss scenarios for the 2026–2027 cycle. Registration is open at the following link: Latin America VC Report 2026.
