The current Venture Capital landscape in Latin America as of Q1 2023 indicates a consolidation of the market following the capital boom observed in 2021. Despite the challenges facing the ecosystem, there is a period of stabilization and as a result new trends have emerged:

• Debt and lines of credit gain relevance

  The reduction of Venture Capital and Growth Equity has driven debt and lines of credit to be the most common financing alternative. At the end of Q1 2022, debt and lines of credit grew 145% over the prior year quarter.

  The number of companies raising debt increased by 27% compared to the first quarter of last year.

• Evolution of talent and trends

  Despite business closures and job cuts, we have seen growth in job creation. Job growth at Unicorns and Soonicorns was 19% in Q1 2023 compared to the year-ago quarter.

  Layoffs

  Due to restructuring, Startups have had staff cuts during the last year, this talent has been mainly in Sales, IT & Software and Finance departments.

  Particularly in Chile there is a higher proportion of layoffs in management positions (33%).

Rehire Trends

Talent is highly valued in terms of experience and skills, especially that coming from Startups, the average rehire time is 1.6 months, however, the current situation positions talent to return to traditional companies, with 33% of employment in corporations.

The industries where rehiring is concentrated are FinTech, E-Commerce and Banking and Investments.

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