There is cautious optimism among Latin America's entrepreneurs and investors.
The investment team at Atlantico chronicles how the region leaves in its wake a decade-long boom in tech value creation. Latin America broke through to the world stage with a fourfold increase in venture funding over the previous year. Even though the funding has been halved, the region still counts on greater investment volumes than any year before.
Five years have passed since the birth of Latin America's first unicorns, a milestone in the digital transformation of a region with over 650 million people.
Ignoring calls for austerity could mean wasting the gains from these golden years, yet not exploiting the region's special post-pandemic position could leave a lot of money on the table.
Tech adoption has waned in the US and other developed markets. As usage levels return to the pre-pandemic historical trend line, some market darlings have had to reduce their workforce.
The persistence of Latin America’s digital gains is perhaps most clearly seen through enduring gains in e-commerce penetration.
Latin America has not been affected by the digital adoption problem. A two- to three-year gain can be observed in a wide range of indicators of tech adoption, such as e- commerce, grocery delivery volumes, and usage of digital banking.
The online share of retail was higher in the US than in Brazil. The image is called Atlantico.
Tech companies and investors are trying to figure out how to weather the storm in markets around the world. After a long period of excess money supply and low interest rates, central bankers stepped on the brakes.
All Rights Reserved © 2024
