Latin America Global Services’ Post

In 2023, Latin American VC funding faced challenges, totaling approximately $4 billion across 864 deals, with early-stage companies in Brazil, Mexico, Colombia, Argentina, and Chile being predominantly targeted. Despite this, resilience is shining through in 2024. A rebound is expected, and will likely be driven by easing interest rates and a focus on emerging markets. Startups at pre-seed and seed stages are expected to return to pre-pandemic fundraising levels, but investors are maintaining their cautious outlook. Geopolitical shifts could attract investment to Latin America, especially in Mexico. This is due to global supply chain restructuring, which has the potential to attract funding to the region. VCs will look to prioritize startups demonstrating profitability, innovation, and efficient capital management, with a particular interest in sectors like Fintech, AI, Agtech, and Healthtech. Additionally, the growing influence of #ai underscores the importance of solutions that solve real customer problems to attract VC interest. Latin America's VC landscape holds both challenges and opportunities. For further LatAm VC insights, check out this Contxto article - https://lnkd.in/gC2d_2nH #venturecapital #latam #vc #latinamerica #innovation #foleyforward #garage2global Foley & Lardner LLP

“Startups at pre-seed and seed stages are expected to return to pre-pandemic fundraising levels. VCs will look to prioritize startups demonstrating profitability, innovation, and efficient capital management, with a particular interest in sectors like Fintech, AI, Agtech, and Healthtech. Additionally, the growing influence of #ai underscores the importance of solutions that solve real customer problems to attract VC interest.”

The Global Innovation Index 2024 is now live! 📊 Among the most innovative economies we see Switzerland, Sweden, the United States, Singapore and the United Kingdom. The 2024 edition of the report focuses on the theme of "Unlocking the Promise of Social Entrepreneurship", showing a decrease in venture capital activity, R&D funding, and other key investment indicators. It highlights the growing significance of social entrepreneurship as a crucial source of innovation often overlooked by policymakers, innovation economists, development agencies, and funding institutions. 📄 Discover more here: https://lnkd.in/g-J3KKGa #GII2024 #Innovation #WIPO World Intellectual Property Organization – WIPO Global Innovation Index  https://lnkd.in/g-J3KKGa

#latinamerica ‘s VC landscape holds both challenges and opportunities. No doubt about that. In 2023, Latin American VC funding faced challenges, totaling approximately $4 billion across 864 deals. Despite this, resilience is shining through in 2024. A rebound is expected. So, check out this analysis by #siliconvalley Latin American expert André Thiollier on how this year is shaping. Some sunny surprises may lay ahead. #venturecapital #mergersandacquisitions #inversiones #latam

🚀💡 Unraveling the World of Startups in LatAm: Payments, Benefits, and Strategies for Business Success 💼💸 Hello LinkedIn Community! 👋✨ In the fascinating universe of startups in Latin America, the key to success lies not only in innovation and agility but also in compensation and benefits strategy. According to the recent Startup Salary Study in LatAm, conducted by the Venture Capital firm 500 Global, here are some crucial insights: 1. Payment Structures: Payroll: 49.9% Fees: 22.29% Payments from another country's headquarters: 8.94% Subcontracting by a third party: 7.27% Others: 6.79% Direct cash compensations: 4.53% These figures reveal the diversity of approaches adopted by startups in the region to remunerate their talents. 2. A Glimpse at C-Level Salaries: Countries with higher C-Level salaries: Brazil, Panama, Chile, El Salvador, Mexico, Uruguay, and Costa Rica. Countries with lower C-Level salaries: Argentina, Bolivia, Peru, Colombia, the Dominican Republic, and Ecuador. These data provide a strategic view for companies aiming to position themselves in the Latin American labor market. 3. Compensation and Equity for Key Roles: CEO: $3,000 monthly and 47% equity COO: $2,711 and 20% equity CTO: $3,000 and 17% equity CFO: $2,750 and 10% equity These figures offer a clear picture of how startups distribute compensation and equity for key executive roles. 4. Importance of Operational Efficiency: "Careful attention to costs, revenues, and operational efficiency is essential for the growth and longevity of technological startups in this dynamic environment," emphasizes 500 Global. 5. Trends in the LatAm Startup Market: Median capital raised in Chile: $1.5 million Median capital raised in Mexico: $1 million In 2023, 899 venture capital transactions took place, with a 30% decrease in the number of operations and a 41% decrease in capital mobilized compared to 2022. These data shed light on the current landscape and opportunities in the startup ecosystem in the region. Understanding the specific dynamics of each country and adapting with agility is the key! 🚀✨ Share your ideas and experiences on this exciting business journey. Together, let's build a solid future for startups in Latin America. 💪🌎 #StartupsLatAm #BusinessStrategy #Innovation 📈🌐 Let's keep building the future of business in Latin America together! 🌟✨

Growth strategies differ significantly between the US and Europe, particularly when it comes to scaling tech startups, with major implications for how companies expand and innovate.   In the US, startups focus on market share growth at all costs, often relying on significant capital injections to dominate markets before profitability is even on the radar. The approach is aggressive, with companies aiming to scale quickly, backed by venture capital and risk-tolerant investors.   In contrast, European startups often prioritize profitability over fast market expansion, which slows down growth. According to the Draghi report, this cautious approach leaves Europe lagging behind in key areas like technology and productivity. The report highlights that only four of the world’s top 50 tech companies are European, while 30% of European unicorns have relocated to the US.   It’s not just a matter of access to capital—European firms are constrained by regulations and a fragmented market, making it difficult to scale as rapidly as their US counterparts. The Draghi report calls for a massive €750-800 billion investment annually to close the gap and suggests more coordination on policies to boost Europe’s competitiveness   .   Ultimately, scaling isn’t just about choosing between speed or sustainability; it’s about understanding market dynamics and adapting the right strategy for the environment you’re in. Europe needs to rethink how it balances profitability with growth if it wants to compete globally.   What’s your take on this? Can European startups afford to play the long game, or is it time to adopt a more aggressive approach like the US? You can find the report here --> https://lnkd.in/ePPCHMcw #Growth #Scaling #Innovation #USvsEurope #DraghiReport #CGO

As the founder of World Talents, I'm proud of our mission to empower entrepreneurs, investors, and executives through hybrid investment residency solutions, advancing Portugal's R&D and entrepreneurial ventures. 🌎 By leveraging academic infrastructure, global talent, and expert mentorship, we create a robust ecosystem for global business success. Our extensive network facilitates knowledge transfer, strategic guidance, and international partnerships, accelerating growth and innovation. Explore the Global Talent Portugal HQA Residence Program to support personal and business growth. Check the original post link in the comments for more details. 👇 #worldtalents #investmentmigration #knowledgetransfer #entrepreneurs #innovation #globaltalent

There may be a dry spell in exits, but it doesn’t mean we should wait around. Ecosystem builders can prepare now to retain more of the value from their homegrown successes in the future. 🐣 In many of the emerging markets that we’ve studied at Endeavor Insight, local VC can only support companies at the early stages. For larger ticket sizes, successful companies look to investors in major tech hubs. 🐌 The aggregate result? Much of the value of local exits accrues outside the home country. If this doesn’t evolve over time, a heavy reliance on foreign investment means losing out on local wealth generation and economic growth. The future of emerging market ecosystems depends on supporting more scaleups and building local growth funds that can retain and reinvest the value of their successes. Local founders, investors, and policymakers each need to play their part in enabling local ecosystem development. 🔍 What if more of the value from entrepreneurial exits in emerging markets benefited their home countries? 🇪🇸 We studied the VC landscape in Spain last year to better understand these dynamics. The country’s 10 largest entrepreneurial exits since 2018 total more than $8 billion. However, nearly 4 out of every 5 investors in those companies were not based in Spain. The study offers lessons on building local VC capacity and aligning decision makers to transform the ecosystem. #entrepreneurship #venturecapital #data

Mario Draghi has written a paper critiquing the falling productivity in Europe, extending its ramifications to EU losing its political power as its growth falls behind US and China. EU was the first in the world to be truly committed to sustainability(which may or may not have compromised growth but their commitment is strong). Draghi promised EUR 800 bn in investments to revive the economy. He also says to switch up the regulations so as to make the environment more amicable for startups. I remember being taught the Liberal Market Economies (LMEs) and Coordinated Market Economies (CMEs) as the two distinct models of capitalism and consequent innovation. Question here is turning to LME the only option to unleash growth ? And to those of us in startups, are we setting a LME or a CME culture?

Latin America is showing a come back in #venturecapital investments --. #latinamerica has been witnessing a remarkable surge in venture capital investment and economic growth. Despite challenges like high interest rates and strict banking requirements, #latam is continuing to thrive with opportunities. Rise in early-stage venture deals, slashed interest rates in some countries like Mexico, expanding middle class driving demand for banking services where new #fintechs are filling the gap, are some of the reasons we might see Latam poised to become a global hub for innovation and entrepreneurship. #venturecapital, #latinamerica, #innovation #inversiones André Thiollier Foley & Lardner LLP