Introduction to the Venture Capital Landscape in Latin America
At the onset of the COVID-19 pandemic, there was a surge in venture capital investments in the region, leading to the emergence of young private companies valued at over $1 billion (known as unicorns). However, funding later decreased.
Recovery in Latin American Venture Capital Sector
According to the study “Venture Capital & Growth Equity in LatAm 2025” by Endeavor and Glisco Partners, Latin America, including Mexico, has experienced a recovery in the venture capital sector with a 26% increase in funds raised, totaling $2.85 billion in 2024. This growth surpasses Europe’s 7% increase and contrasts with Southeast Asia’s 34% decline.
Shift in Investment Focus
Despite the overall increase, there were fewer funding rounds in 2024, with only 432 investments, a 2% decrease from the previous year. The report states that investments are concentrating on growth and late-stage companies, supporting businesses with proven models and scalability potential.
The time gap between Series A and B funding rounds has extended to 25 months, indicating the challenges in advancing to more advanced stages.
Mexico’s Venture Capital Recovery
In Mexico, there was a notable recovery in 2024, securing the second-highest position in regional capital raised, just below Brazil. This was due to significant funding rounds for companies like Clip, a digital payment platform and services provider for small and medium-sized businesses, which raised $100 million, and Jüsto, a digital supermarket that secured $70 million in capital and debt financing.
Mexico raised $635 million across 76 investment rounds in 2024, according to Endeavor’s data. In comparison, 2023 saw 72 rounds raising $463 million.
Other sources suggest that investments could be even higher. Amexcap, the Mexican Private Capital Association, reported $970 million in investments in emerging Mexican companies last year, marking a 16% increase from 2023.
Fintech Dominates Investments in Mexico
The technology financial (fintech) sector in Mexico attracted the largest share of investments.
Key Questions and Answers
- What is the main trend in Latin American venture capital? There has been a 26% increase in venture capital funds raised in Latin America, reaching $2.85 billion in 2024.
- How has the investment landscape changed? Investments are now focused on growth and late-stage companies, with fewer funding rounds but larger amounts of capital.
- What is the situation in Mexico? Mexico experienced a recovery in 2024, securing the second-highest position in regional capital raised. Fintech companies dominated investments.
- What do other sources suggest about investment levels? Amexcap reported a 16% increase in investments in Mexican emerging companies, indicating potential for even higher investment figures.
