After a couple of years of caution in the venture capital ecosystem in Latin America (and the world), investment is increasing.
In 2024, investment in startups grew 26% compared to 2023, totaling $2.85 billion dollars, according to a study by the entrepreneurial community, Endeavor, and the Glisco Partners fund. Mexico, which had lost second place among the Latin countries that receive the most venture investment, regained its place, surpassed only by Brazil.
Vicent Speranza, CEO of Endeavor Mexico, told Contxto that the country demonstrated great resilience as an ecosystem in 2024. “It regained second place in capital raised in the region, only behind Brazil, with a total of $635 million dollars, representing a growth of 37% over the previous year,” he noted.
Speranza explained that this rebound was explained by several factors: relevant rounds, such as Clip and Jüsto, which boosted the total volume; and a greater concentration of late-stage capital, since 65% of the total raised in Mexico went to Growth and Late Stage rounds.
“This reflects a focus by investors on companies with proven traction, operational efficiency and regional vision. In addition, something very relevant: Mexico City is consolidating as a regional hub for entrepreneurship, talent and investment, attracting both early stage and scaling capital,” he said.
VC recovery in the region
The Endeavor and Glisco Partners study indicates that Mexico and Argentina have been key in the recovery of venture capital in Latin America, driven by large financing rounds. In Mexico, startups received outstanding rounds, such as those of Clip (US$100 million) and Jüsto (US$70 million) and in Argentina, Ualá’s US$300 million round represented 73% of the total raised in the country. These events had an impact on the reactivation of the sector.
In 2024, large foreign funds also returned to invest in Latin America. And local funds continued to invest in startups that showed convincing metrics.
The Endeavor and Glisco Partners study says that in the last four years, the participation of regional funds has grown steadily in early stages. In contrast, fintech and other mature verticals, due to their advanced development, continue to attract a higher proportion of international investment with stakes close to 60%.
Last year’s rounds are even the result of a combination of both regional and foreign investment. Such is the case of Cobre, a Colombian enterprise payments infrastructure startup, which raised US$35 million in September 2024. This Series B was led by U.S.-based Oak HC/FT and included the participation of U.S.-based QED investors, Brazilian fund Canary and Argentina’s Kaszek. The round was used to expand into Mexico.
José Vicente Gedeón, CEO and co-founder of Cobre, said that raising capital in the current period requires clarity in the business model, a solid vision and metrics that support growth.
Gedeón added that venture capital is maturing. “It’s no longer just about growth at all costs but about creating sustainable companies, entrepreneurs who understand that and investors who are looking for these types of bets are the ones who will continue to make a difference. There is capital available, but it is going to those who have a clear value proposition and teams that know how to execute and that is good for everyone, it raises the standard of the ecosystem”.
According to the study by Endeavor and Glisco Partners, 432 venture capital rounds were closed last year. Although the number of deals was 2% lower than in 2023, the money raised was higher because there were mega rounds for more advanced stage startups.
Vincent Speranza explained that the seed stage is still active, but with a different dynamic. “It is still the majority in number of rounds with 272 or 62% of the total but, contrary to the aggregate trend, average tickets here have decreased by 12% from $1.7 million to $1.5 million.”
Endeavor’s CEO says that “today, with fewer later stage funding options, early stage funds are looking for experienced teams, with solid tech leaders, early traction and solid models from day one. This adjustment does not mean an absence of investment, but a stage more focused on quality than quantity.”
Seed-stage startup and AI industry player Numia can confirm this. Mexican fund Cometa led the $3.5 million round of this Argentine startup. Numia’s country manager in Mexico, Alberto Villalpando, told Contxto that one of the reasons they closed this round was precisely to have a validated and growing product with proven profitability.
In short, “we are seeing a more optimistic or improved outlook so far this year,” said Eric Pérez-Grovas, founder and managing partner of the Mexican fund Wollef. And as proof, he said, three of the startups in its portfolio have recently closed successful rounds.
