“Do you have the patience to wait until your mud settles and the water is clear?” - Lao Tzu
Colombia: Discover Lizit, the game-changing SaaS enterprise empowering equipment rental companies with its lightning-fast booking interface, comprehensive inventory management, and seamless e-commerce integration. Get to know the case HERE.
Argentina: Discover Qurable, their vision is to generate the largest ecosystem for exchanging benefits and reward points worldwide based on the current businesses’ and users' needs. What is the proposal? They democratize access to a loyalty ecosystem according to the business needs and not to what the technical teams can do. Bigger companies with solid technology teams can connect to the platform through APIs. At the same time, smaller ones can launch their complete loyalty program through a self-service journey. Get to know the case HERE.
Dive deeper into other fundraising firms in LatAm here.
Some stats from the region. Chile was the only major tech country that received more investments in Q1 2023 vs. Q1 2022. Brazil faced a huge drop between Q1 of 2023 and 2022 = -93%.
Top 3 countries in terms of capital investments in Q1 2023:
Brazil: Deforestation in Brazil's Amazon decreased by 34% in the first half of 2023, reaching its lowest level in four years. The decline is attributed to President Lula's tougher environmental policies, but challenges remain as the cleared area is still over three times the size of New York City.
Honduras: China and Honduras have initiated negotiations for a free trade agreement, marking a significant step in their diplomatic and economic relationship following Honduras' shift in ties from Taiwan to mainland China. The talks come after China recently approved imports of bananas, coffee, and shrimp from Honduras.
Argentina: The central bank is expected to maintain its benchmark interest rate at a high level of 97% in the near future, as monthly inflation shows signs of easing. The decision is seen as a positive development for the government ahead of primary elections next month, although Argentina still faces significant inflationary pressures with an expected annual inflation rate of around 150%.
Chile: Economic activity index, a proxy for GDP, has declined for the fourth consecutive month in May, highlighting the challenges faced by the country as the world's largest copper producer. The drop in economic activity, particularly in mining and trade, is prompting expectations of imminent interest rate cuts to stimulate the economy, with experts predicting a 100 basis-point reduction at the upcoming meeting.
Latin America is experiencing growth that multinational companies are missing out on. While the region's real growth is projected at 1.6%, in terms of purchasing power parity (PPP), it will expand by over 6% with per capita consumption increasing by 11% in USD. This is due to the appreciation of currencies like the Mexican Peso, Brazilian Real, and Chilean Peso, creating an opportunity for multinationals to gain market share. However, companies are hesitant to invest due to over reliance on their home markets and the growing influence of China in South America. Central banks in Brazil, Mexico, and Chile have played a significant role in attracting capital through high real interest rates. This creates a favorable environment for foreign multinationals in the region.
