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The Rise of Startups and Venture Capital in Latin America and the Caribbean: Trends and Challenges
The Rise of Startups and Venture Capital in Latin America and the Caribbean: Trends and Challenges
This GPC report analyses the profound entrepreneurial transformation Latin America and the Caribbean is undergoing. With 38 unicorns as of mid-2025 and a growing number of high-impact startups, the region is emerging as a hub of digital innovation and inclusion. This publication, product of a collaboration between the Global Policy Center (GPC), the Consejo Empresarial Alianza por Iberoamérica (CEAPI), and CFA Society Spain, examines key trends shaping the startup and venture capital ecosystem.
The analysis covers the surge in fintech and e-commerce, the expansion of early-stage investment, and the persistent lack of late-stage financing. Drawing on data and six case studies, the report highlights how startups are addressing structural market failures while investors adopt more disciplined, sustainability-oriented strategies. Despite enduring challenges such as regulatory fragmentation, infrastructure gaps, and talent shortages, the region’s innovation ecosystem shows clear signs of maturation and long-term potential for economic and social development.