Growth of Internet and Mobile in Latin America

Latin America shows a growth in the internet and mobile internet market, which opens a window of opportunity for tech startups. It is known that once the core market has been saturated, the search for less developed markets begins in hope of finding new growth opportunities. The VC tech investment in 2017 was $1.1 billion, compared to the estimated $500 million of the five previous years. The investment trend continues to grow year by year.

Founding Numbers and Market Transactions

Founding numbers have increased as well; for the first time, there have been rounds from $90-$100 million. Transactions have also shown growth, with 2017 tripling 2016 transactions, proving there is a maturity in the market that had not been seen before.

Global Investment Interest

Global venture capital firms have been looking for opportunities to invest in Latin America. Twenty-five new firms from Silicon Valley and Asia entered the region in 2017. It is known that money isn’t all; for it to work, many factors must be aligned, such as technological and social infrastructure, and there must be an existing demand from the locals.

Role of Institutional Support

Institutional support plays an important role for this to work properly. In the last few years, there has been an increase in support from institutional investors and local governments. Since 2010, different programs have appeared across Latin America to help the growth of startups, including Startup Chile and Mexico’s Fondo de Fondos.

Conclusion

Latin America is starting to show market maturity for the first time. With the increase in funding and institutional support, there is a unique opportunity for Latin America to become tech leaders in the coming years.