A 2021 Report by Sling Hub was pretty revealing! The research is based on 24 000 startups and 650 investors into the LATAM startup market.
Total investment volumes is up 13 times from 2016. From US$936 Million to US$13 Billion. Wow what a huge uptick.
Brazil Number 1 in Startups
Why is Brazil Number the Number 1 choice for startup investment money? Brazil startups in 2016 were 46% of the investments while they receive 61% of the total invesments.
See how Brazil startups dominate below by invesment received:
Merger and Acquisitions in Startup market
Brazil startups also lead the merger and acquisitions with 83% of totals for LATAM and with 135% larger volume in COVID year 2020 representing 200 companies and this number forecast to be bigger for 2022 with already 195 companies in M&As this year to August.
The Brazilian companies buying the most by volume in LATAM are the following companies below:
1-Magazine Luiza
2-Linx
3-Locaweb
4-IFood
5-B2W Digital
6-VTEX
7-Accenture
8-Afya
10-Meluiz
Again a total wow on this dominance by our local market in Brazil.
Unicorn Scene Latam
From 2018 there has been a literal explosion of Unicorns born in the LATAM market. In 2017 there was one Unicorn. We now have in 2021 34 Unicorns.
Investment money into Latam Startups
The single largest investment company is Soft Bank. Almost no surprise there. The United States having 8 of the top 15 investors into LATAM. So we know where most of the money is coming from and where its going.
See below total Investment volumes by Country:
So the big money questions are:
1-Why is all this money and growth in Unicorns being concentrated in Brazil?
2-Does Brazil have technology advantages that these investors are seeing?
3-Is Brazil finally starting to realize the promise of being the next USA?
4-Brazilian is a country of early adapters so is this the dominant factor?
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