Investments in Latin American startups reach $1.8 billion in the initial portion of 2025
In the second quarter of 2025, Latin America's startup funding space experienced a significant boost, with a 35% increase from the previous year, raising a total of approximately $1.8 billion. This marks the strongest six-month run since early 2022, with Q2 2025 bringing in a surprise $961 million.
Brazil, traditionally a major player in the region, saw a 23% year-over-year drop in funding, landing at $350 million. However, most of this funding was concentrated in the $120 million clean mining round of New Wave, a testament to investor interest in climate tech. Chile, on the other hand, brought in $110 million, largely thanks to activity in clean energy and logistics.
Colombia posted $92 million, mostly from smaller seed and early-stage deals, with no startup clearing the $50 million mark. Mexico, however, has recently overtaken Brazil as the largest recipient of venture capital in Latin America. This shift is driven by significant investments in startups and strong acceleration programs like Decelera Mexico 2025, which provides strategic support and funding of up to $2 million for impact-driven startups.
Mexico's fintech startup, Klar, was the standout of Q2 2025, raising $170 million, the largest private tech round in the region. Other countries, such as Argentina and Argentina, remain important players with steady funding activity, often participating in region-wide thematic investment waves, particularly in financial technology and impact-driven ventures.
Fintech accounted for 44% of all H1 2025 funding, totaling about $792 million. Series A and B startups raised $309 million in Q2 2025, a decrease from Q1's $454 million. Other categories like healthtech, proptech, and agtech remained active but funding was scattered and inconsistent.
Interestingly, early-stage capital (Seed and Angel funding) is still in decline, with H1 2025 raising only $229 million, the lowest since mid-2023. Private equity interest in secondaries is rising, hinting at the return of liquidity. However, Q2 2025 saw no unicorn-level outcomes recorded.
In terms of trends, the Latin American startup funding ecosystem is characterised by attracting larger rounds led by global venture funds, a strong pivot toward tech-enabled financial services, cleantech solutions, and a shift in capital flow with Mexico emerging as a new regional leader in venture capital deployment. Additionally, blockchain and AI-powered financial inclusion startups are raising significant capital across the region, highlighting investor interest in digital infrastructure and fintech innovation.
Lastly, insiders see signs of life in the startup exit market, with seven disclosed startup exits in Q2 2025, totaling $340 million. As the region continues to attract global attention and investment, the startup landscape in Latin America is expected to continue its growth trajectory.
- The growth in Latin America's startup funding space, particularly in Q2 2025, indicates a strong interest in investing in business sectors like fintech, cleantech solutions, and tech-enabled financial services.
- Mexico, with its strong acceleration programs like Decelera Mexico 2025, has recently become the largest recipient of venture capital in Latin America, demonstrating the financial community's increased focus on potential business investments.
