LAVCA’s Trends in Tech is an extensive reporting on the state of the VC ecosystem in Latin America.
The 2025 report presents updated perspectives on Latin America VC metrics verified by LAVCA Research, including sector and country-specific breakdowns, median round sizes across investment stages and the most active investors in the region.
Highlights Include:
Selective deployment: VC deal value remained steady, though deal count declined. VC investment is becoming increasingly concentrated, characterized by larger checks and fewer deals across stages.
- Venture investors have become increasingly selective in deploying capital into new opportunities. Between 2023 and 2025, follow-on transactions accounted for 50% of all early-stage checks.
- Deal activity was underpinned by strong participation from local investors in seed and early-stage rounds. VCs invested USD2.2b across early-stage rounds in 2025, representing 52% of the total and the largest annual amount in early-stage capital since 2022.
- Five companies accounted for approximately 25% of total venture dollars in 2025: Plata, ADDI, Klar, Omie and Kavak.
- Mexico closed the funding gap with Brazil. Mexico-based startups raised 21% more capital year-over-year and trailed Brazil-based companies by just 14% in total funding.
The report also explores emerging themes across the ecosystem, including:
- Asia-based tech companies and startups are increasingly eyeing Latin America as a strategic growth market, with M&A deals and strategic partnerships with local startups as preferred entry strategies.
- While AI intersects multiple tech verticals, VC-backed AI startups in Latin America are primarily focused on enterprise applications.
- Entrepreneurs are increasingly turning to debt to manage runway and avoid equity dilution. VC-backed startups secured over USD2b in financing through credit lines, structured debt and FIDCs in 2025.
LAVCA Members can log in to download LAVCA’s 2026 Trends in Tech report . Non-members can purchase to access the data.
