It has been difficult to attract investors to the digital startup space in Latin America. This is because of a variety of reasons, including the lack of a track record of established VC firms in Latin America, the immaturity of the new generation of entrepreneurs and the scarcity of exit strategies in the region.
Not anymore.
Much has changed in this region in the past 15 years in terms of its digital ecosystem creation and the use of new technologies. Today, with more than six countries deserving investment-grade debt by S&P (Brazil, Chile, Colombia, Mexico, Panama and Peru, among others), Latin America is radically different. Successful technology companies and venture capitalist that have accompanied these countries have reaped generous benefits.
Successful digital entrepreneurs have channeled the ubiquitous penetration of social and mobile technologies to drive growth for their companies. It should speak volumes that São Paulo, Rio de Janeiro, Buenos Aires and Bogotá individually surpass New York City in terms of Facebook, Skype or WhatsApp subscribes and usage. It’s not a surprise that The Wall Street Journal called Brazil, “The Social Media Capital of the Universe.”
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