Market Insights Financial Capital Raising Traditional Capital Raising

Venture Capital - South America

South America

The total capital raised in the Venture Capital market market in South America is projected to reach US$6.68bn in 2024.
The Later Stage market dominates the market with a projected market volume of US$4.68bn in 2024.
In global comparison, most capital raised will be generated the United States (US$136,600.0m in 2024).
In Brazil, the Venture Capital market is thriving, with a growing number of startups attracting significant investments from local and international firms.

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

Market

Region

Region comparison

Currency

Analyst Opinion

The Venture Capital market in South America has been steadily growing in recent years, driven by various factors such as customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors. Customer preferences in South America have played a significant role in the development of the Venture Capital market.

Entrepreneurs in the region are increasingly seeking external funding to support their innovative ideas and ambitious projects. This is driven by a desire to scale their businesses quickly and tap into the expertise and networks that Venture Capital firms can provide. Additionally, there is a growing recognition among entrepreneurs that Venture Capital funding can help them attract top talent and gain a competitive edge in the market.

Trends in the market have also contributed to the growth of Venture Capital in South America. One notable trend is the rise of technology startups in the region. South America has seen a surge in the number of startups focusing on areas such as e-commerce, fintech, and healthtech.

These startups require significant capital to fuel their growth and are turning to Venture Capital firms for funding. Another trend is the increasing number of cross-border investments in South America. Venture Capital firms from around the world are recognizing the potential of the region and are actively investing in South American startups, further fueling the growth of the market.

Local special circumstances in South America have created a favorable environment for Venture Capital investment. One such circumstance is the presence of a young and dynamic entrepreneurial ecosystem. South America has a vibrant startup scene with a growing number of incubators, accelerators, and co-working spaces.

This ecosystem provides a fertile ground for Venture Capital firms to identify and invest in promising startups. Additionally, government initiatives and policies aimed at promoting entrepreneurship and innovation have also contributed to the growth of the Venture Capital market in South America. Underlying macroeconomic factors have also played a role in the development of the Venture Capital market in South America.

Economic stability and a favorable investment climate have attracted both domestic and international investors to the region. South American countries have made significant progress in improving their business environments, reducing bureaucratic hurdles, and implementing investor-friendly policies. These factors have instilled confidence in Venture Capital firms, encouraging them to invest in the region.

In conclusion, the Venture Capital market in South America is experiencing steady growth due to customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors. Entrepreneurs in the region are increasingly seeking Venture Capital funding to support their growth ambitions, while trends such as the rise of technology startups and cross-border investments are further fueling the market. Local special circumstances, such as a dynamic entrepreneurial ecosystem and supportive government initiatives, have created a favorable environment for Venture Capital investment.

Lastly, underlying macroeconomic factors, including economic stability and a favorable investment climate, have attracted both domestic and international investors to the region.

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.