Welcome to our Tech Roundup, where we bring you Brazil’s biggest stories on technology and innovation. This week: Startup investment deals are at their lowest point since 2017, and SVB’s collapse worsened things.
A litmus test for Latin American startups
Latin America saw a six-year low of 53 startup investment deals in February, according to platform Sling Hub. What’s more, February rounds raised 75 percent less than the same month last year — and 60 percent less than January.
Sliding faster. Brazil is the region’s largest economy and typically accounts for at least half of the investment flowing into the region. But its startup environment is declining faster than Latin America as a whole: down 85 percent year on year in February.
Moreover … The Silicon Valley Bank debacle has made things worse. Last year, 1,352 startups in Latin America raised more than USD 28.2 billion in funding, according to the Association for Private Capital Investment in Latin America (LAVCA), and many of them had accounts at SVB.
- Startups in Mexico, Colombia, and Chile were also hit hard, as having accounts at SVB was the only choice for many Latin American entrepreneurs looking to attract global investors with operations in the U.S.
Backdrop. Gustavo Gierun, CEO and co-founder of Distrito, an innovation platform, tells The Brazilian Report that the U.S. government’s...
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