LAVCA's 2007 Scorecard on Latin America's PE/VC Investing Environment

05/14/2007

Author:

United States

Categories:
Capital Markets
Federal Programs
Industry Regulation
Private Equity
Venture Capital

Article:

Download 2007 Scorecard

Summary of Scores

Scores by Criteria

By-Country Scores:

Argentina
Score Summary Commentary

Brazil
Score Summary Commentary

Chile
Score Summary Commentary

Colombia
Score Summary Commentary

Dominican Republic
Score Summary Commentary

Ecuador
Score Summary Commentary

El Salvador
Score Summary Commentary

Mexico
Score Summary Commentary

Peru
Score Summary Commentary

Trinidad and Tobago
Score Summary Commentary

Uruguay
Score Summary Commentary

Comparator Countries:

Israel
Commentary

Spain
Commentary

Taiwan
Commentary

United Kingdom
Commentary

Developed by the Economist Intelligence Unit (EIU) for the Latin American Venture Capital Association (LAVCA).

Press Release | 2006 Scorecard

Executive Summary

In this 2nd Annual Scorecard on the venture capital and private equity (VC/PE) environment in 12 Latin American and Caribbean (LAC) countries, the Latin American Venture Capital Association (LAVCA) and the Economist Intelligence Unit (EIU) chart the region's strengths and weaknesses. The 2007 Scorecard covers Argentina, Brazil, Chile, Colombia, Costa Rica, the Dominican Republic, Ecuador, El Salvador, Mexico, Peru, Trinidad and Tobago, and Uruguay. To allow extra-regional comparisons, it also provides scores for Israel, Spain, Taiwan and the United Kingdom.

The 2007 Scorecard reveals the potential for growing VC/PE in the region. Many nations have shown recent momentum toward industry-specific legislation. Investors seem to be noting the region's increasing awareness of the macroeconomic benefits of a vibrant VC/PE industry. Regional fundraising rose from US $1.3 billion in 2005 to $3 billion in 2006, and investment levels have quadrupled (from $1 billion in 2005 to $4.3 in 2006). 2007 scores demonstrate progress in many countries to promote VC/PE, but reveal that the region as a whole is held back by the broader problems of weak judicial systems and international perceptions of corruption.

While LAVCA and the EIU note that fund managers operate successfully in many ranked nations, often irrespective of score, the objective of this Scorecard is to serve as a guide to encourage reform and track changes over time. As such, eight key findings emerge from the 2007 Scorecard.

Continued in the downloadable Scorecard (PDF).

Developed by the

On behalf of: