Tuesday, 15 August 2023 20:39

Investments in Central American startups total US$83 million in 2022

Written by Evelyn Alas

Investments in Central American startups accumulated a total of US$83 million in 2022, equivalent to five times more than seen in the last five years, according to Guatemala-based Cuantico VC and Bloomberg magazine.

However, VC investment in the region is still in its early stages. In this case, in 2022, venture capital in Israel was equivalent to 1.94% of its Gross Domestic Product (GDP), while in Latin America it barely reached 0.19%.

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Despite being an emerging investment modality in the region, venture capital (VC) has enormous potential to provide significant financial returns and foster the development of more advanced societies through the revitalization of traditional sectors.

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The Guatemalan also founded the Central America Angel Fund Initiative (CAFI), the first angel investment network in Central America. This initiative has launched a detailed overview of the main players driving the development of startups in Central America, identifying a variety of profiles, from venture capital funds that finance promising ideas to startup accelerators in the isthmus.

The guide offers a light for those seeking funding for their startupstrategic advice or simply interested in learning about the world of startups in Central America.

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A startup is a newly created company that, thanks to its scalable business model and the use of new technologies, has great possibilities for growth. This type of business has been gaining strength in recent years.

Investment funds: Innogen Capital in El Salvador): It is a venture capital fund that invests in early stage companies with emphasis on Central America, Colombia, Mexico and the Caribbean or Invariantes in Guatemala): It is the gateway for venture capital to the Americas.

 

Translated by: A.M