“One can’t live on the results of the past” - Jefferson Pérez (Ecuadorian race walker)
March 21, End Of Day
WIND Ventures recently published the outcomes of its fourth annual survey, providing insightful revelations into the venture capital community's perspective on global startup growth markets beyond North America and Europe. This year's survey engaged 50 venture capitalists, encompassing a broad spectrum from traditional to corporate venture capitalists, with a mix of early-stage, seed-stage, and growth investors.
Drastically shifting from previous years, this year’s survey positioned Latin America as the top growth market, garnering 36% of VC preference, while China, once the frontrunner in 2020, dropped to just 13%. This significant pivot away from China and also Southeast Asia, whose attractiveness declined by 51% from 2020 to 2023, illustrates a recalibration of VC focus towards Latin America's dynamic and expanding market.
Within Latin America, fintech stands out as the preeminent sector for investment, selected by 51% of the surveyed VCs, signifying its pivotal role in the region's economic landscape. Climate tech and energy sectors follow, underscoring the critical need for innovative solutions in these areas to address the urgent challenges faced by emerging markets.
When contemplating expansion into new regions, venture capitalists consistently prioritize market size and technological adoption rate as crucial factors. The current survey reveals a robust confidence in Latin America's market potential, with a substantial portion of VCs acknowledging the region's advantages in these aspects. Conversely, perceptions of China and Southeast Asia have seen a marked decrease. Yet, one may question the lack of other emerging markets.
Superfrutti: Superfrutti is connecting farmers with business owners through technology. Superfrutti maintains an average margin of 17% and growing. They have served over 1000 customers and fulfilled more than 30,000 orders, all within Bogota. Dive deeper into the case here.
Pura Mente: Pura Mente is a leading wellness and meditation platform, with consistent growth traction (25% QoQ), over 30k paying users, and more than 2 million downloads. Dive deeper into the case here.
Aperta Salud: A chain of low-cost primary healthcare centers with a focus on user experience and digital solutions, to empower patients in Bolivia to receive efficient inclusive, and affordable healthcare. Dive deeper into the case here.
Dive deeper into other fundraising firms in LatAm here.
Mexico: Mexico has joined other major Latin American economies in cutting interest rates, reducing them by 25 basis points to 11%. This move aligns with the region's trend of addressing inflation earlier than developed countries, showcasing the credibility of Latin America's central banks. Despite challenges like persistent inflation, Latin America's proactive stance offers a model for balanced monetary policy amidst global economic shifts.
Brazil: Brazil's Finance Minister announced a credit initiative targeting low-income individuals and small businesses, part of broader economic stimulus measures. The package includes microcredit for welfare recipients, debt renegotiation for small enterprises, and support for real estate credit. Additional actions aim to enhance financial support for Brazil's economically vulnerable groups.
El Salvador: El Salvador will move a large portion of its bitcoin holdings to an offline "cold wallet" stored within the country, President Nayib Bukele announced. This decision follows El Salvador's unique step of making bitcoin legal tender. Bukele stated the holdings are valued at around $407 million, highlighting the country's commitment to integrating cryptocurrency into its financial strategy, despite facing criticism and navigating the complexities of global finance.
🤔 Are you telling a compelling startup story?
Rahul Brahmbhatt, Venture Partner at VU Venture Partners, and Richard Armstrong, Venture Partner at TA Ventures, analyze the structure and content of two pitch decks from Bolivia.
Rahul and Richard emphasize how important it is to:
Thanks to the startups included:
iZi: SMBs Management Software.
Mobi Latam: Changing the game for last-mile delivery riders.
