SAO PAULO, Jan 10 (Reuters) - Latin American startups raised $3.1 billion in venture capital investments in 2023, their worst performance since 2018, according to data released by Brazilian market tracking platform Distrito on Wednesday.
The amount represents a 60.4% drop from 2022 and an 81.7% plunge compared with the record investment levels in 2021, when historically low global interest rates fueled $17.1 billion in venture capital investments in Latin American startups.
"Numbers from venture capital market in Latin America reflect the challenging dynamics in 2023, evidenced by the drop in the number of deals closed in the period," Distrito CEO Gustavo Gierun said in a statement.
However, 2024 has started with optimism in the market, said Gierun, noting "emerging opportunities" on the horizon.
In gross numbers, Latin America's venture capital market had 746 funding rounds last year, the lowest since 2017 and a 48.6% fall from 2022, according to Distrito's data.
The amount of funding raised by Brazilian startups through venture capital in 2023 declined by 56.8% compared with 2022, Distrito said. Brazilian startups were the target of about 61% of all funding rounds in Latin America last year.
Brazil is home to some of the startups that received the largest investments in 2023, such as financial tech firms QI Tech, which announced a $200 million funding in October, and Nomad, which raised $61 million in August. (Reporting by Andre Romani in Sao Paulo; Additional reporting Peter Frontini Editing by Matthew Lewis)
