Market Insights Financial Capital Raising Traditional Capital Raising

Venture Capital - Peru

Peru

Peru is projected to reach a Total Capital Raised of US$88.1m in the Venture Capital market market by 2024.
In the same year, Later Stage is expected to dominate Peru's market with a projected volume of US$65.1m.
When compared globally, the United States is forecasted to generate the highest Capital Raised amount, reaching US$264,500.0m by 2024.
Peru's Venture Capital market is experiencing a surge in investments, driven by the country's growing tech and innovation sectors.

Key regions: Europe, United States, United Kingdom, Australia, Brazil

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Analyst Opinion

The Venture Capital market in Peru has been experiencing significant growth and development in recent years.

Customer preferences: Peruvian entrepreneurs and startups have shown a strong preference for venture capital funding as a means to fuel their growth and innovation. This is due to several factors, including the limited availability of traditional bank loans and the desire for external expertise and guidance from experienced investors. Additionally, the success stories of previous venture-backed companies in Peru have inspired a new generation of entrepreneurs to seek out this type of funding.

Trends in the market: One of the key trends in the Venture Capital market in Peru is the increasing number of venture capital firms and funds entering the market. This influx of capital has provided a much-needed boost to the startup ecosystem, allowing entrepreneurs to access the funding they need to scale their businesses. As a result, we have seen a rise in the number of early-stage startups receiving investment and a growing number of success stories emerging from Peru. Another trend in the market is the focus on sectors that are driving economic growth in Peru. Industries such as technology, e-commerce, fintech, and renewable energy have attracted significant investment as they offer high growth potential and align with global trends. Investors are also showing interest in startups that are addressing local challenges, such as access to healthcare and education, as well as those that are leveraging Peru's rich natural resources.

Local special circumstances: Peru's growing middle class and increasing internet penetration rate have created a favorable environment for startups to thrive. The rise of e-commerce and digital services has opened up new opportunities for entrepreneurs, and venture capital has played a crucial role in supporting their growth. Additionally, the government has implemented policies and initiatives to promote entrepreneurship and innovation, further fueling the development of the Venture Capital market in Peru.

Underlying macroeconomic factors: Peru's strong economic performance and stable political environment have attracted foreign investors to the country. This has not only boosted the overall investment climate but also increased the availability of venture capital funding for local startups. Additionally, Peru's strategic location within Latin America and its membership in trade agreements such as the Pacific Alliance have positioned it as an attractive destination for international investors looking to enter the region. In conclusion, the Venture Capital market in Peru is experiencing significant growth and development, driven by customer preferences for alternative funding sources, trends in key sectors, local special circumstances, and underlying macroeconomic factors. As more venture capital firms and funds enter the market, we can expect to see further expansion and innovation in Peru's startup ecosystem.

Methodology

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on the amount of capital raised, the average of deal size and the number of deals.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use data from OECD, annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, CPI, number of small and medium-sized enterprises (SME), new businesses registered (number) . This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.