Welcome to our Tech Roundup, where we bring you the biggest stories in technology and innovation in Brazil and Latin America. This week: The worse-than-expected investment landscape for Latin American startups.
Latin American startups see investments plummet 81 percent in May
The Latin American startup ecosystem attracted just USD 252.5 million in investments (including venture capital, debt venture, and receivables bonds) last month — 42 percent less than what was raised in April and the lowest monthly volume since July 2020. The data comes from the latest report from Sling Hub, an intelligence platform focused on Latin American startups.
Why it matters. On a yearly basis, the drop in investment was even more pronounced: 81 percent. The numbers suggest that investors are much more cautious than expected.
- “It mainly reflects the reduction of larger [funding] rounds, of late-stage startups. However, early-stage companies have not felt this market decline to the same extent, as rounds continue to take place. May was actually the second best month of the year in terms of number of deals, with 70,” João Ventura, CEO of Sling Hub, tells The Brazilian Report.
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