Venture Capital - Puerto Rico

Puerto Rico

Highlights

Puerto Rico is expected to see the Total Capital Raised in the Venture Capital market market reach US$94.90m in 2024.
Later Stage is set to dominate the market with a projected market volume of US$71.71m in 2024.
When compared globally, the United States will lead in Capital Raised, generating US$136.6bn in 2024.
Puerto Rico's Venture Capital market is gaining momentum, attracting investors due to tax incentives and a growing entrepreneurial ecosystem.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Venture Capital market in Puerto Rico has been steadily developing over the past few years, with an increasing number of startups and entrepreneurs seeking funding for their innovative ideas and projects.

Customer preferences: Entrepreneurs in Puerto Rico are increasingly turning to venture capital as a source of funding for their startups. This is primarily due to the fact that venture capital provides not only financial support but also valuable expertise and guidance to help startups grow and succeed. Additionally, venture capital funding allows entrepreneurs to focus on building their businesses rather than worrying about fundraising.

Trends in the market: One of the key trends in the Venture Capital market in Puerto Rico is the growing interest in technology startups. Puerto Rico has seen a rise in the number of tech startups in recent years, particularly in sectors such as software development, e-commerce, and fintech. This trend can be attributed to the increasing availability of skilled tech talent in Puerto Rico, as well as the growing demand for innovative tech solutions in the market. Another trend in the market is the focus on sustainability and social impact. Investors in Puerto Rico are increasingly looking for startups that not only have the potential for financial returns but also contribute to the local community and environment. This trend reflects the growing awareness and importance of sustainability and social responsibility in the business world.

Local special circumstances: Puerto Rico's unique status as a U. S. territory offers certain advantages for startups and investors in the Venture Capital market. For example, Puerto Rico benefits from the same legal and regulatory framework as the United States, making it easier for startups to operate and attract investment. Additionally, Puerto Rico offers attractive tax incentives for investors, including tax breaks and exemptions, which can make investing in Puerto Rico more appealing.

Underlying macroeconomic factors: The development of the Venture Capital market in Puerto Rico can also be attributed to several underlying macroeconomic factors. Puerto Rico has experienced economic challenges in recent years, including a debt crisis and natural disasters. However, these challenges have also created opportunities for innovation and entrepreneurship. The government and local organizations have been actively supporting the development of the startup ecosystem, providing resources and programs to help entrepreneurs access funding and grow their businesses. In conclusion, the Venture Capital market in Puerto Rico is developing due to the increasing demand for funding among startups and entrepreneurs, the growing interest in technology startups, the focus on sustainability and social impact, the unique advantages of Puerto Rico's status as a U. S. territory, and the underlying macroeconomic factors that have created opportunities for innovation and entrepreneurship. As the market continues to evolve, it is expected to attract more investors and fuel the growth of the startup ecosystem in Puerto Rico.

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.