Based on the premise that has been addressed throughout this study, capital investment has been lower than in recent years in the region, but is there a shortage of capital in Latin America?
The funds show greater bets on profitability, despite what has been observed in Q1 2023, several funds have a total of more than $2 million dollars to place in the following years. For Q1 of this year only 13% of this available capital has been placed.
This figure indicates that there is a significant amount of capital available that funds appear to be earmarking for Early Stage only.
In terms of the origin of investments, foreign investment has decreased significantly (50% compared to the first quarter of 2022). This has given way to regional funds having a greater presence in Latin American investments, representing 73% of investments. However, 100% of these investments are from Early Stages.
However, although these investments are mostly Early Stages, international funds continue to invest in Growth Equity. During Q1 2023, 8% of capital by foreign funds was allocated to Growth Equity (Series B).
Globally, the corporate sector has seen a reduction in total participations, with a 12% drop in the last quarter. In Latin America in Q1 2023 there was a 78% drop compared to the previous quarter
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