News Americas, New York, NY, January 14, 2025: Latin America closed 2024 on a high note for startup investment, with the fourth quarter delivering the year’s highest funding totals according to Crunch Base News. Across the year, investors committed $4.2 billion to seed- through growth-stage rounds in the region—a 27% increase compared to 2023, signaling a rebound from historically low investment levels in 2022 and 2023.
However, funding remains well below the record peaks seen in 2021 and early 2022, reflecting a broader global slowdown in venture capital markets.
Fintech Drives the Recovery
Fintech dominated Latin America’s startup funding landscape in 2024, capturing the majority of the largest investment rounds. Highlights include:
- Ualá, a Buenos Aires-based neobank, raised $300 million in a Series E round, the region’s largest for the year.
- Asaas, a Brazilian provider of online business accounts, secured $133 million in Series C funding.
- Contabilizei, a Brazilian accounting platform, raised $125 million in venture funding.
Other sectors, such as digital commerce, also made a strong showing. For example, Mexico’s Clip, a provider of payment solutions for merchants, raised $100 million, while OCN, an EV subscription service for rideshare drivers, secured $86 million.
Brazil Leads Regional Funding
Brazil maintained its position as the top recipient of startup funding in Latin America, drawing nearly half of the region’s total investment in 2024. Mexico followed, capturing roughly one-fifth, with Argentina, Colombia, and Chile rounding out the top five.
Late-stage funding drove gains in Q4, hitting its highest point in five quarters. In contrast, early-stage funding peaked earlier in the year, with its strongest performance in Q1.
Outlook for Exits
While 2024 saw limited IPOs and major acquisitions for venture-backed startups in Latin America, optimism for 2025 remains high. The region’s pipeline of well-funded, mature companies – particularly in fintech – positions it well for potential IPO activity, especially if global markets stabilize.
Latin America’s startup ecosystem is poised for continued growth as fintech and digital commerce lead the charge, and investor confidence returns to the region’s dynamic and evolving markets.