99 Startups Monthly Newsletter - April 2025
How are Trump’s tariffs affecting investment in LATAM
While we all thought this year we were start seeing better investment outcomes in the VC landscape in LATAM, now it seems it may take a bit longer than expected, and we don’t know when.
Trump’s recent implementation of tariffs (including a 10% baseline in all imports) has introduced significant uncertainty into the global market.
While the direct effects these tariffs may have on Venture Capital in LATAM are still uncertain, we may consider the following points:
The escalation of trade tensions can lead to increased market volatility, prompting institutional investors to reassess their portfolios. According to Reuters, JPMorgan downgraded its outlook on emerging market currencies to "underweight" following the announcement of tariffs exceeding their worst-case scenarios. This can lead to reduced capital inflows into emerging markets, including LATAM, potentially affecting the availability of funds for VC investments.
A slowdown in economic activity may lead to decreased consumer spending and business investments, creating a challenging environment for startups seeking to scale. This, could influence VC firms' decisions, making them more cautious in deploying capital within regions experiencing economic headwinds.
Conversely, certain LATAM countries might find opportunities amid the shifting trade landscape. For example, Brazil's relatively moderate tariff exposure compared to other nations could enhance its trade competitiveness, potentially attracting increased foreign investment. Such dynamics may create favorable conditions for VC investments in specific sectors poised to benefit from these changes.
In summary, while Trump’s tariffs don’t affect Venture Capital investment directly, we could expect some negative changes and funds and investors may be more cautious considering investment in the most affected countries.
Portfolio Companies
Portfolio companies currently raising investment rounds
Ximple: they are transforming financial access in Latin America by empowering resellers with working capital, digital tools, and new income opportunities. Currently raising their seed round.
Ozon: they offer motorcycle financing to gig workers and couriers of LATAM. Currently raising a $500k USD round.
Kunzapp: they help companies manage their softwares very easy, while helping them save up to 20% in their SaaS subscriptions. Currently raising a +$2M USD investment round.
Bando: The fastest and safest way people in LATAM can invest in, and self custody their crypto. Currently raising a $2M USD investment round.
Supervisor AI: A platform to convert every business conversation generated into growth opportunities and actionable insights. Currently raising a $750k USD investment round.
Please don’t hesitate to contact us in case you are interested in connecting with any of these amazing companies.
Great companies we have recently reviewed:
Rial AI: They revolutionize the retail industry by automating clothing modeling with just one click.
Partrunner: Global B2B Logistics Marketplace for Big & Bulky.
Recommendations of the month:
What You Do Is Who You Are: How to Create Your Business Culture - Ben Horowitz: Ben shows us with lessons both from history and from modern organizational practice how to build cultures that can weather both good and bad times.
The consumer Psychology of Adopting AI - Julian De Freitas | HBR IdeaCast