crisis. What has been interesting in the past weeks, though, is that the aftermath of the SVB collapse might be producing some unexpected reactions across the region namely, the emergence of local endeavors looking to gain some independence from the U.S.’ grand old institutions.
The last few months of 2022 were particularly fruitful for Latin American startups looking to get large sums from Wall Street, as opposed to any local offerings in exchange for equity. Goldman Sachs was particularly keen to splash the cash, shelling out well over a billion dollars to Latin American tech companies in that period.
Post-SVB, global banking has immediately become more risk-averse, making startups and particularly companies from far-off regions like Latin America less palatable.
Talks to establish financial institutions modeled on neo-banks to get around as much Latin American red tape as possible are also in the works.