Latin America saw record funding of $15.3 billion from venture capitalists (VCs) in 2021, triple what it was in 2020, with FinTech, eCommerce and PropTech capturing nearly 75% of investments. The previous record of VC funding was $4.9 billion set in 2019. Across 2021, there were 650 deals in LatAm backed by VCs. The FinTech sector took the lead, with 16 new unicorns in 2021. 39% of investments into firms that included the cryptocurrency exchange Bitso and Chilean plant-based food producer NotCo. Ecommerce captured 25% of VC funds and PropTech got 9%.
FinTech is now integrating with other industries, PropTechs are introducing financing divisions, and AgTechs are launching credit facilities for agriculture producers. Brazilian neobank Nubank raised $1.15 billion last year the biggest fundraising of 2021 in LatAm and started trading on the New York Stock Exchange in December 2021 at a valuation topping $40 billion. The region is attracting the attention of more international VC funds than ever before, and some are setting up shop with analysts and investors. Softbank recently launch a second LatAm fund of $3 billion, bringing its investment commitment to the region to $8 billion.