Although at different rates, it is indisputable that the Venture Capital ecosystem in Latin America continues to grow and venture capital associations have been crucial in its development. The latest version of Innovation El Mercurio analyzed the current state of the industry and how the ACVC has been a reference in the region.
Not only do startups need to think about regional expansion, investors need to do so as well. "When interacting with other countries, from the ACVC, it was evident that venture capital markets in Latin America had many things in common: venture capital was a new industry for the investor base, without specific regulation, very international, both for startups seeking capital abroad and investors who have a regional look, among others," explained Francisco Guzman, president of the ACVC. The exception to this are Mexico and Brazil, since being larger markets with their own rules, startups can live the full funding cycle without necessarily leaving the country, unlike what happens in Chile, Colombia or Uruguay. That is why networking was imperative.
In 2020, it was the first time that an event between associations was organized, this time by ACVC and ARCAP (Argentine Association of Private Equity, Entrepreneurship and Seed). "It was in full pandemic and it was all online, but it turned out very well and generated much more interest than expected. The following year we proposed to do something together in person, as a result of which the VC Latam Summit was born in Miami, whose first version was organized by 6 countries and about 150 investors participated. This year we have just finished the third edition, organized by the venture capital associations of 9 countries and with the participation of more than 400 investors focused on the region", he said.
All of the above has been crucial in connecting those raising capital with investors, beyond the networks that each may have locally, as well as facilitating entry into new markets through strategic partners, he added.
And in this growth, Chile has played a prominent role in the region. Liliana Reyes, general director of Amexcap, said that our country is a market with a lot of talent and high levels of education, which allows creating a profile within its population with ambition, critical and hardworking. Local investors trust Chilean entrepreneurs, he added. But also, despite being a relatively small country, it is looking to solve problems in the region.
Paola García, executive director of ColCapital (Colombian Private Equity Association), agrees with the analysis and says that "currently the venture capital industry in Chile is one of the most developed in Latin America".
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