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VENTURE CAPITAL GLOBAL VS LATAM

  • Writer: Fernanda Bezerril
    Fernanda Bezerril
  • Oct 9
  • 1 min read

In recent years, we’ve seen a clear divergence between global dynamics and the reality of Latin America. While the global market returned to growth in 2024–2025, driven by mega rounds, the Latin American ecosystem has stabilized at levels significantly below the 2021 peak.


Chart comparing Global versus Latin American Venture Capital Investment Activity from H1 2021 to H1 2025. The top chart represents the GLOBAL scenario, where the bars show total funding (in US$ billion) and the line represents the average deal size (in US$ million). Global funding volume was $333 billion (H1 2021), $438 billion (H2 2021, peak), $293 billion (H1 2022), $166 billion (H2 2022), $166 billion (H1 2023), $139 billion (H2 2023, lowest point), $159 billion (H1 2024), $194 billion (H2 2024), and $219 billion (H1 2025). The average global deal size (line) reached $17 million in H1 2025. The lower graph represents LATIN AMERICA, following the same structure (financing in US$ billion and line for average deal size). Funding in Latin America was US$9.5 billion (H1 2021), US$9.6 billion (H2 2021, peak), US$5.3 billion (H1 2022), US$2.6 billion (H2 2022), US$1.3 billion (H1 2023, lowest point), US$2.3 billion (H2 2023), US$1.5 billion (H1 2024), US$2.4 billion (H2 2024), and US$1.6 billion (H1 2025). The average deal size in Latin America (line) reached US$6.0 million in H1 2025. The source of the information is “CB Insights.”

It’s still common to see founders planning fundraising rounds as if we were in the 2021 liquidity supercycle — but the data tells a different story: today’s environment is marked by greater selectivity, less available capital, and far more discerning investors.


Fundraising and M&A tend to move together. During liquidity cycles, companies grow rapidly and delay M&A moves. In contraction cycles, the opposite happens: smaller rounds and increased interest in strategic M&As as a path to growth, consolidation, and exits.


The challenge for founders and executives today isn’t just raising capital — it’s understanding that capital hasn’t disappeared; it has become concentrated in companies with strong traction, defensible technology, and global market reach. M&A now takes center stage as a mechanism for liquidity, consolidation, and expansion — both for startups seeking exits and for traditional companies accelerating their digital transformation.


VENTURE CAPITAL GLOBAL VS LATAM



By DealMaker Insights | DealMaker

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