Preliminary findings from the LatAm VC Report 2026: more capital, fewer startups

Last updated: February 2026. Venture capital in Latin America totaled US$4.126 billion across 681 rounds in 2025, a 13.8% increase over 2024's US$3.627 billion. This marks the first significant rebound after three consecutive years of correction since the 2021 peak of US$17.381 billion. However, deal volume fell 1.9% to its lowest level since 2017, signaling a recovery driven entirely by larger check sizes rather than more deals.

How much venture capital was invested in Latin America in 2025?

Latin American startups raised US$4.126 billion across 681 rounds in 2025. This represents 13.8% year-on-year growth versus the US$3.627 billion recorded in 2024, and the first meaningful recovery after the post-2021 correction cycle.

The recovery, however, is not broad-based. The number of rounds fell from 694 to 681 (a 1.9% decline), the lowest deal count since 2017. The average ticket per deal increased 16%, from US$5.2 million to US$6.1 million. This confirms that capital is concentrating in fewer companies with stronger traction and validation, not spreading across more startups.

As Jose Kont, CEO of Cuantico VP, notes: "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."

Which countries received the most venture capital in Latin America in 2025?

Brazil and Mexico captured 78.5% of all venture capital invested in Latin America in 2025. Brazil attracted US$2.032 billion across 363 deals (52.9% of regional funding), while Mexico secured US$980 million in 86 rounds (25.5%), recording the region's highest average ticket at US$11.4 million per deal.

Mexico's outsized ticket was driven by megadeals in fintechs such as Plata and Klar. Brazil's dominance reflects both ecosystem maturity and sheer volume of companies raising capital.

Colombia records more deals than Chile (62 vs. 53) 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 fewer rounds, reflecting macroeconomic constraints.

What sectors received the most funding in Latin American VC in 2025?

Fintech dominated Latin American venture capital in 2025, capturing 61% of total funding with only 29% of deals. This means fintech not only closes many rounds, but the largest ones. The three biggest deals of the year were all Mexican fintechs: Plata (US$250M Series B and US$160M Series A) and Klar (US$170M Series C).

The top 10 rounds of 2025 totaled US$1.229 billion, nearly 30% of all capital deployed in the region.

SaaS consolidated as the second sector with 13% of both deals and funding. Logistics (5% of deals, 17% of funding) and energy (4% of deals, 10% of funding) show deals-to-capital ratios that indicate larger tickets linked to infrastructure-intensive models.

What happened to early-stage funding in Latin America in 2025?

Early-stage financing in Latin America continued to decline in 2025, posing a long-term structural risk to the ecosystem. Pre-seed funding fell 40% in capital (from US$110M to US$66M) and 39.4% in deals (from 251 to 152). This represents a 77% collapse versus the 661-deal peak in 2022 and marks the lowest pre-seed activity since 2018.

Fewer startups funded at pre-seed today translates directly into fewer candidates for seed and Series A rounds over the next 18 to 24 months.

According to Jose Kont, CEO of Cuantico VP: "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."

Series B was the standout winner in 2025: capital jumped 56.8% to US$939 million across 24 deals, with the average ticket rising 63% from US$24 million to US$39.1 million. By contrast, growth rounds (Series C and beyond) contracted 56.8% to US$777 million, the lowest level for this stage since 2017.

How did VC-backed exits perform in Latin America in 2025?

The value of VC-backed exits in Latin America soared from US$1.8 billion in 2024 to US$4.9 billion in 2025 across 63 transactions. Average exit size increased from US$29 million to US$77.8 million, indicating larger and higher-quality outcomes. This is the third-best year on record, behind only 2021 (US$8.8 billion) and 2018 (US$7.2 billion).

The improvement signals that the liquidity cycle for limited partners (LPs) in the region is beginning to improve, a critical factor for future fundraising.

However, new unicorn creation remains near a standstill. Only 2 startups crossed the US$1 billion valuation threshold in 2025, the same as in 2024 and far below 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 reach this symbolic milestone.

How many new VC funds were launched in Latin America in 2025?

A total of 15 new venture capital funds launched in Latin America in 2025, raising a combined US$761 million. This represents a 131% increase over the US$329 million raised by 11 funds in 2024. While still below the 2021 peak (US$3.1 billion across 27 funds) and 2023 (US$2.6 billion across 21 funds), the trend signals renewed confidence from LPs and institutional investors.

The fund landscape reveals a structural concentration at early stages. Out of 351 mapped funds, 117 focus on pre-seed and 144 on seed, meaning 74.4% of all funds operate at early stages. Only 8 funds are active at Series C, which helps explain the scarcity of growth-round capital.

What role is venture debt playing in Latin American startups?

Venture debt has emerged as a significant financing layer for growth-stage Latin American startups, partially offsetting the 56.8% contraction in Series C+ equity funding. Although not included in traditional VC statistics, venture debt structures and non-dilutive credit facilities have become central to the financing stack, particularly for credit-focused and buy-now-pay-later (BNPL) fintechs.

Several operations perceived within the ecosystem as "megadeals" are in fact venture debt instruments used to fund loan books and working capital. These structures do not appear in standard VC metrics, but are increasingly relevant for understanding the full picture of startup financing in the region.

About the Latin America VC Report

The Latin America VC Report is produced by Cuantico VP, a research, market intelligence, and strategic visibility platform for the Latin American VC and startup ecosystem. The report is developed in partnership with Startuplinks, a platform that maps, organizes, and connects startups, investors, and key ecosystem players across Latin America.

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.

Data as of full-year 2025. All figures in US dollars. Venture debt transactions are excluded from all VC metrics unless explicitly noted.