Digitalization was the dominant theme across Latin America’s private capital landscape in 2021, with technology companies driving interest across asset classes and pushing private capital investment to a new record of USD29.4b.
VC investment reached a record of USD15.7b, more than what the region’s startups attracted in the 10 years prior and over half of total private capital dollars invested in 2021.
Private capital funds are financing the region’s bet on greater connectivity and competitiveness through digital and transportation infrastructure.
The region’s major markets each reached new investment milestones despite socioeconomic and political headwinds.
A return to growth in Latin America’s major economies, coupled with low interest rates during the first half of the year, fueled M&A activity and public listings for private capital-backed companies.
LAVCA Members can log in to download the 2022 Industry Data Excel file and read key insights curated by the LAVCA Research team. The full PDF report and analysis will be released in March.
Look out for quarterly data releases from the LAVCA Research team in 2022.
At a time when VC investment represents 54% of overall private capital investment in Latin America, LAVCA’s 2022 LAVCA Trends in Tech breaks down 2021 VC investment data, top deals, highlighted transactions, sector and country trends and most active investors.
This year’s report highlights notable milestones and additional emerging trends including:
Sixteen startups surpassed USD1b+ in disclosed valuation, in parallel with investment records across all major markets and stages.
Investment in women-led startups reached 26% of capital raised in disclosed rounds over USD1m in 2021.
Increased specialization in traditionally leading sectors of investment such as fintech and e-commerce, and the emergence of cryptocurrency, blockchain and decentralized finance as a breakout sector.
LAVCA Members can log in and download an accompanying LAVCA Data Pack with fundraising and disclosed closings; exits; all disclosed transactions, sortable by stage, sector and HQ; stage analysis for the major markets, round size analysis, and sector breakouts with year-over-year sector growth.
Actis and Mainstream Renewable Power sold Aela Energia, a Chile-based independent power producer established as part of a joint venture between Actis and Mainstream, to Innergex Renewable Energy for USD691m. Read more#Real Assets
Keo World, a Miami-based BNPL platform with operations in Mexico, secured USD500m in a debt facility from UK-based Hayfin Capital. Read more#VC
Prisma Capital-backed Origem Energia acquired Polo de Alagoas, a set of seven onshore and shallow water oil and gas concessions in Brazil, from Petrobras for USD300m. Read more#Real Assets
Spanish bank BBVA invested USD300m in digital bank Neon to double down in its exposure to the Brazilian financial market. Read more#VC
Advent International acquired a 25% stake in Brazil-based construction materials manufacturer Tigre for BRL1.35b. Read more#PE
LatAm Growth SPAC, a special purpose acquisition company launched by SouthLight Capital (formerly Colony LatAm Partners) raised USD130m in its IPO on the Nasdaq. Read more#PE
Altum Capital reached a USD125m final close for ALTUM USD II, its second private debt fund focused on providing loans to SMEs in Mexico. Read more#PE
LIV Capital Acquisition Corp II, a SPAC formed by LIV Capital Group, raised USD100m in its IPO on the Nasdaq. Read more#PE
Warburg Pincus invested USD100m in Sólides, a Brazil-based talent management platform. DGF Investimentos invested USD3.5m in August 2019, in the company’s first institutional capital. Read more#VC
Vinci Partners acquired a 40% stake in Brazil-based water company Águas do Brasil for an undisclosed amount. Read more#PE
Insight Partners led a USD50m Series B for Inspectorio, a US-based compliance management platform for manufacturing companies with operations in Ecuador, with participation from Matchstick Ventures, Techstars, Flexport and Ecolab. Read more#VC
Quartz led a ~USD30m round for WAP, a Brazilian home appliances company, with participation from Echo Capital, Malwee and PIPO Capital. Read more#VC
QED Investors led a USD20m Series A for Melonn, a Colombia-based e-commerce fulfillment platform, with participation from GFC and Alter Global, and follow-on from Wollef, NFX and PearVC. Read more#VC
Union Square Ventures led a USD16m Series A for Mundi, a Mexico-based lending platform financing imports/exports for SMEs, with participation from Upper90, FJ Labs, Base10 Partners, Exor, AndBank, Alleycorp, Operator Partners and Gilgamesh Ventures. Read more#VC
Cerberus Capital Management agreed to commit BRL50m to Brazil-based real estate investment company Brasil Brokers. Cerberus acquired a 39.2% stake in the company in March 2021. Read more#PE
TPaga, a Colombia-based mobile payment platform, raised a USD10m Series A from EWA Capital, Mountain Partners, Star 26, Fundación Botnar and New Ventures. Read more#VC
SoftBank and Illuminate Ventures led a USD7m seed round for Birdie, a Brazil-based data analytics and market research platform for consumer packaged goods brands, with participation from Endeavor Catalyst and Fusion Capital, and follow-on from Astella Investimentos.Read more#VC
General Catalyst led a USD5.9m seed round for R2, a Mexico-based embedded lending platform for consumer-facing applications, with participation from family office 166 2nd and YC.Read more#VC
First Rock Private Equity agreed to acquire an 85% stake in a petroleum company in Trinidad and Tobago for an undisclosed amount. Read more#Real Assets
BlackRock Real Assets, through its climate infrastructure fund, agreed to acquire 200MW of solar projects in Chile to be developed by Solek Latam Holding. Read more#Real Assets
