Latin America has made its mark on the innovation landscape in recent years: in 2021, the region’s start-ups raised a record 19.5 billion dollars in funding. That same year, 18 Latin American companies achieved unicorn status (start-ups that achieve a market value of USD 1 billion before going public). And although capital inflows have slowed in 2022, the outlook for the region remains promising.

“There are two difficult years ahead worldwide, but global capital will be available for Latin America and its entrepreneurs,” says Fermín Bueno, CEO of innovation and venture capital firm Finnovista, which specialises in fintech . ” In 5 to 10 years’ time, the growth in investment that we have been seeing, which has been 30-40% year-on-year, will continue”.

For Joe Naffah, Mexican director of BBVA Spark, “start-ups are aware that it is going to be more difficult and more expensive to access capital, and that being efficient and obtaining additional sourcesof funding is key.” Through financial support, comprehensive accompaniment and open innovation, the bank’s new unit will help strengthen the local ecosystem: “We want to be an ‘enabler’, accompanying them and giving them access to credit, which is one of the

A well-taken opportunity

In Latin America, where 78% of the population is now using the Internet, new forms of technology can be the solution to the main challenges. “It’s a huge opportunity,” says Bueno, “because there are big problems that have yet to be solved and they are the fertile ground where entrepreneurs and venture capital are sowing seeds.”

“There are big problems that have yet to be solved and they are the fertile ground where entrepreneurs and venture capital are sowing seeds”

Fintech is the market leader. In 2021, it attracted almost $6 billion (39% of the total raised by start-ups in the region), and almost half of the Latin American unicorns are galloping through this sector. And in second place, e-commerce accounted for 20% of venture capital investment in 2021. And among the fastest growing sectors is edtech, which raised six times more venture capital in 2021 than in 2020.

Taking a stroll through the most prominent hubs

Entrepreneurship in the region is concentrated in countries such as Brazil and Mexico and, within these, in large cities. But this is not necessarily detrimental to other emerging hubs: “Having neighbours that attract more investment or have a greater number of start-ups benefits those of us who are close by,” says Aurora Otoya, head of BBVA Open Innovation Peru. “Good ideas spread, markets expand, investors’ eyes are drawn to the entire region… And it also makes us more competitive. In order to promote innovation, BBVA Open Innovation is boosting the local ecosystem by working together with start-ups, organising events and promoting trends.

“Having neighbours that attract more investment or have a greater number of start-ups makes us more competitive”

If you follow the trail of the region’s most cutting-edge entrepreneurship, there are several must-see stops on the way: