It has been too long since my last post. Having consistency to write on a weekly basis has been a challenge for me. I will try to catch up on the owed posts in the coming weeks. On to the post!
The Latin American startup ecosystem has had a boost this year:
1- Softbank announced a 5bn usd fund focused on the region & led by Bolivian Marcelo Claure
2- Mercado Libre has raised 1,9bn and currently has a market cap of 20bn usd
3- The fintech sector is getting a boost from financing rounds (Credijusto) & successful IPO´s in Brazil (Stone & Pagseguro)
4- Word on the (Colombian) street is that Rappi is seeking a 500m – 1bn raise (WoW)
5- A number of 50M-100M+ usd rounds announced & in the works
That’s a lot of good news for the region in a very short period of time.
I think we will continue to see more good news throughout the year in the way of financings as companies reach higher traction + achieve product market fit, which will make local/international funds participate in bigger rounds. Let´s see what the Softbank effect has on local valuations.
The problem is that Brazil is much bigger in terms of funding received (73% of total) than any other country in the region by a wide margin. Even in Brazil, but also across the region, the majority of the funding has been directed at a handful of companies (Movile, Nubank, Rappi, etc). We need more companies in more countries to grow and attract bigger rounds!
The final point in all of this is exits: strategic and public exits are needed in order to validate the strength of the ecosystem. I expect exists to start accelerating with the success of the early IPO´s and competitive nature of strategic players looking at LatAm.
It is definitely an interesting time to be an entrepreneur in the region. Optimistic that Reservamos can contribute to this growth story in the near future. A lot more to come!
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