99 Startups Monthly Newsletter - February 2025
The Latin American venture capital ecosystem showed signs of recovery in 2024, marking a 27% year-over-year (YoY) growth in funding compared to 2023. According to Crunchbase, total venture investment across early to late-stage startups reached $4.2 billion USD. While this signals renewed investor confidence, funding levels remain significantly below the highs of 2021 and 2022.
Latin America Venture Dollar Volume - Crunchbase
Brazil Leads Venture Activity
Brazil continued to dominate the region’s venture funding landscape, attracting nearly half of the total investment. This reinforces its position as the most mature startup ecosystem in LATAM, benefiting from a mix of strong domestic capital, international investor interest, and an expanding base of high-growth startups.
Early vs. Late-Stage Investment Trends
2024 revealed an interesting divergence in funding trends across different stages:
Early-stage investments started strong but gradually declined as the year progressed, signaling a more cautious approach from investors evaluating risk.
Late-stage investments, on the other hand, gained momentum towards the end of the year, reflecting a shift in capital allocation toward more mature companies with clearer paths to profitability.
A Tough Year for Exits
Despite the funding recovery, 2024 was one of the weakest years for exits in LATAM. The region saw few IPOs and major acquisitions, limiting liquidity events for both founders and investors. This stagnation underscores the continued challenge of building exit-ready companies in LATAM’s evolving venture landscape.
2025: A Pivotal Year for LATAM VC and IPOs
Looking ahead, 2025 is expected to be one of the most active years for funding and IPOs in the past decade. Several macroeconomic factors—such as stabilizing interest rates and a more favorable capital environment—are setting the stage for increased investor participation. Additionally, late-seed AI startups—particularly those building foundational models and AI-driven infrastructure—are emerging as key investment targets.
As the ecosystem matures, investors and founders must remain adaptive, focusing on sustainable growth, scalable business models, and potential exit opportunities. If market conditions align as expected, 2025 could mark a turning point for LATAM venture capital, driving both innovation and long-awaited liquidity events.
Portfolio Companies
Portfolio companies currently raising investment rounds
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.
Portfolio companies’ job openings
Great companies we have recently reviewed:
Frankles: transforms byproducts into high bio compound extracts unlocking their real value and reducing waste.
Artu.ai: an AI software that automates compliance processes for Fintechs and companies engaged in vulnerable activities, including regulatory monitoring, AML compliance, and responses to regulatory inquiries.
Recommendations of the month:
Four Thousand Weeks: Time Management for Mortals - Oliver Burkeman: Oliver tries to change some perceptions we have grown with regarding time management, and shows us that there is always time for us to do everything we need and want to do.
Venture Capital and Economic Trends: What Startups Need to Know for 2025 - Steven Lord