The venture capital (VC) or risk capital market in Latin America went through a period of slowdown in investments in startups during 2024. This model finances startups in early stages with high growth potential in exchange for equity participation, a key strategy for the development of emerging companies with disruptive ideas.
During recent months, the region has experienced a “drought” in financing, a consequence of global factors such as high inflation, economic and political tensions, and greater caution on the part of investors in the face of the uncertain outlook. This climate has been noticeably more conservative compared to previous years, when investment rounds in Latin American startups exceeded $10 billion annually, in an ecosystem that was beginning to generate promises of great returns.
In 2023 and 2024, venture capital declined sharply, with startups facing difficulty attracting risk-taking investors. According to recent data, investment rounds in Latin America have been reduced by 40% compared to similar periods in previous years. However, despite these challenges, there are signs that, as in other parts of the world, the situation could improve towards the end of 2025, with a gradual revival of interest in technology startups in key sectors such as artificial intelligence, automation and finances.
Among Latin American countries, Peru is one of the leaders in this investment model. In September 2023, the then Minister of Economy and Finance (MEF), Alex Contreras, highlighted that Peru, which was in fifth place among the most attractive countries for investors in the region, moved to first, by 2024. , according to Infobae.
The latest big bets on startups in the region
Despite the slowdown in the market, several startups have managed to attract the attention of important venture capital firms and investment funds. Some sectors remain attractive, particularly those related to financial technology (fintech), business process automation, and artificial intelligence solutions. In this sense, the most recent bets in the region have involved companies that are transforming key industries such as health, human resources, and logistics.
An example of this type of startup is Buk, a human resources software with a presence in Peru, Chile, Colombia, Mexico and soon Brazil, which has achieved an important milestone. The company has just announced the closing of its third Series B capital raising for $50 million, led by the international venture capital firm Headline, with the participation of key investors such as Greenoaks, Base10, Workday, and Endeavor Catalyst, consolidating with a valuation of USD 850 million, consolidating itself as one of the leaders in the HR-tech sector in Latin America.
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