"I have always imagined that Paradise will be a kind of library." - Jorge Luis Borges

MARKETS

March 13, End Of Day

• Argentina
  • S&P MERVAL Index = 2,232,179.96 (YTD = -11.90%)
• Brazil
  • BOVESPA Index = 125,637.11 (YTD = 4.45%)
• Chile
  • S&P IPSA Chile = 3,995.57 (YTD = 10.54%)
• Colombia
  • MSCI COLCAP = 1,592.12 (YTD = 15.41%)
• Mexico
  • IPC Mexico BMV = 51,877.12 (YTD = 4.77%)
• Peru
  • S&P/BVL Peru = 28,835.12 (YTD = -0.43%)

BUSINESS

VC Funding in Latin America

Venture capital in Latin America continues to adjust after the 2021 funding peak, with investors prioritizing sustainability over rapid growth. While total investment remains well below its highs, 2024 shows early signs of stabilization—but only for startups meeting stricter financial expectations.

Key takeaways:

1. Growth-stage funding remains far below peak levels – After the $10.8B spike in 2021, growth funding stabilized at $1.8B in 2024. Startups are raising smaller, more efficient rounds, focusing on profitability rather than expansion.
2. Series A rebounds, but Series B is struggling – Series A funding rose to $0.71B as investors backed startups with clear product-market fit. However, Series B fell to its lowest in five years ($0.60B), reflecting caution around scaling.
3. Seed-stage capital is shrinking – Investors are demanding early traction and revenue metrics, leading to the lowest seed-stage investment in five years ($0.41B). Pre-seed funding, however, saw a slight increase to $0.11B, suggesting early-stage risk appetite is still present but selective.
4. A shift toward efficiency over growth – The funding correction is reshaping the market: startups that can operate with leaner capital requirements and demonstrate clear financial sustainability are securing investment, while others struggle to raise follow-on rounds.

What This Means:

Latin America’s VC landscape is no longer funding hypergrowth at any cost. Investors expect startups to prove scalability, financial discipline, and long-term sustainability. While capital is still available, it’s reserved for those who can demonstrate resilience in a shifting market.

CURRENT AFFAIRS

Bolivia: Facing a severe dollar shortage and fuel crisis, Bolivia's state energy firm YPFB will begin using cryptocurrency for energy imports, a company spokesperson confirmed. The move, approved by the government, aims to sustain fuel subsidies amid dwindling foreign currency reserves. While YPFB has not yet executed crypto transactions, plans are in place.

Argentina: Analysts project 2025 inflation at 23.3%, a sharp decline from last year’s near-300% peak. Economic growth forecasts rose slightly to 4.8%. January inflation slowed to 2.2%, the lowest since mid-2020, though annual inflation remains high at 85%. The Milei administration’s austerity measures continue as Argentina seeks a new IMF loan.

Suriname: The Organization of American States (OAS) elected Surinamese Foreign Minister Albert Ramdin as its new secretary general, making him the first Caribbean leader to head the organization. Ramdin, who previously served as the OAS’s assistant secretary general, emphasized regional unity, sustainable development, and climate action. His election comes amid U.S. policy shifts that include new tariffs, foreign aid cuts, and mass deportations. He will assume office on May 25, the same day Suriname holds national elections.

FURTHER READING

Check our recently published insights here. Recent post:

🤖 Future of Work: How Generative AI Shapes Labor Markets in Latin America

• AI Exposure Varies – 30-40% of jobs are exposed to GenAI, with Uruguay and Costa Rica leading in adoption while Bolivia and Ecuador lag behind.
• Socioeconomic Divide – Women’s jobs face twice the automation risk, while urban, younger, and higher-income workers benefit most from AI.
• Digital Gaps – Many jobs can’t leverage GenAI due to poor digital infrastructure, especially in lower-income countries.
• Opportunities for Growth – Investments in broadband, digital literacy, and policy reforms can drive AI-driven productivity gains.

📖 Read more here.