Venture Capital in Latin America 2025: Data, Signals, and Opportunities

Genaro Malpeli
Sep 17
2 min read

The new report from LAVCA (Latin American Venture Capital Association) reveals a vibrant, albeit more selective, landscape for startups in Latin America. Below, I share the key findings that every founder, investor, or ecosystem manager should keep in mind.

1. VC investment stabilizes post-crisis, with focus on early-stage

Following the market adjustment in 2022, venture capital continues to flow consistently into LATAM.
In the first half of 2025 , 54% of the capital was allocated to early-stage rounds, indicating an appetite for early-stage startups, but with greater demands for efficiency.

2. Mexico surpasses Brazil in VC investment for the first time in 15 years

Mexican startups led the way in terms of capital invested , reflecting a historic regional shift.
Brazil maintains a central role, but the map expands to include the Hispanic world.

3. Dealflow remains strong: 500 new startups raised their first VC

In just 18 months, 500 new startups in the region raised their first round.
54% of the market comes from Spanish-speaking countries , reinforcing the momentum in markets such as Mexico, Colombia, Argentina, and Chile.

4. Montevideo, Medellín, and Monterrey: emerging hubs on the rise

Although the main hubs remain São Paulo, Mexico City, Santiago, Bogotá and Buenos Aires , cities such as Montevideo (ranked 7th in 2024) show a notable acceleration in the number of deals.
21% of startups born since 2024 are in emerging hubs.

5. AI, capital efficiency and fewer "graduates"

Seed to Series A conversion rates dropped significantly , averaging just 12% after 3 years.
The market punishes underperformance: today more than ever , solid product-market fit and efficient use of capital are sought.
AI is the strategic priority for investors: many deals are concentrated there.

6. Gender diversity: slow but steady progress

Women-led startups accounted for 16% of deals >USD1M in 2024–1H 2025.
Since 2019, they have raised over $9.3B , although there is still a long way to go.

7. Experienced founders grow more and faster

Repeat founders accounted for 38% of deals worth more than $1M.
They represent only 40% of all startups , but attract 60% of the capital at some stages.
The ecosystem rewards prior operating experience .

8. Corporations are making a strong entrance: CVCs account for 15% of deals

Companies such as Mercado Libre, Telefónica, FEMSA, Qualcomm, Citi Ventures and Globo are actively participating in rounds .
Corporate Venture Capital doesn't just provide money: it brings synergies and market validation.

9. More than 2,700 startups active with VC since 2020

Of these, a third raised capital in the last 18 months.
There is a critical base of active companies , validating that seed capital is transforming into real traction .

What does all this mean?

For founders : There's room to raise capital, especially if you're focused on efficiency, AI, or have prior experience.
For investors : the market is showing signs of maturity and differentiation. Early bets are still profitable… but not for everyone.
For ecosystem stakeholders : it's time to strengthen emerging hubs, close gender gaps, and professionalize seed stages.