Hello, and welcome to the Latin America Weekly newsletter! In this issue: a new model for startups to get funds â despite a slowdown in venture capital. Petro’s first moves in office. And Honduras’ Bitcoin valley.
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Debt financing on the rise among startups
A Sling Hub report shows that investment rounds in Latin American startups have slowed in the first half of the year, both in number and volume. A closer look at July data also indicates that debt financing â an investment modality that includes operations such as venture debt, credit lines, and bonds issuance â is gaining momentum among the region’s startups.
State of play. The Latin American startup market seems to be settling into a new investment plateau, lower than 2021 but higher than in previous years. Since January, startups have raised USD 7.8 billion, an average of USD 1.1 billion per month. In 2021, a record-breaking year, the monthly average was USD 1.5 billion.
- With economic uncertainty causing venture capital firms to slow down (even SoftBank...