Business

Colombia is the country where startup funding has grown the most, according to Crunchbase

3 out of 7 countries of TechCrunch's data base list about where startup funding has been on the rise are Latin Americans

Walter Rodrigues, head of Dark Kitchens at Rappi's in Brazil
Walter Rodrigues, from Rappi. Photo: Rappi/Courtesy

With digital transformation on the rise in Latin America, especially in sectors such as fintech – that has been pushing the unbanked population of the region towards financial inclusion – funding activity in Latin American startups has been growing at a fast pace.

Brazil, for instance, ranked third in the number of unicorns in 2019, after startups Gympass, EBANX, QuintoAndar, Loggi, and Wildlife having reached the coveted status of $1 billion valuation this past year. However, not only Brazil is becoming a hotspot for funding in the region, as other markets are also attracting an ever-growing amount of investment in recent years – more precisely, Mexico and Colombia.

Although without including seed financings, and focusing only on venture rounds of Series A and beyond, Techcrunch’s platform Crunchbase released this Thursday a list of 7 countries where startup investment has been on the rise – comparing the year-over-year growth of the funding activity among these markets – and 3 out of 7 are Latin Americans.

#1 Colombia

With 236% YoY growth, Colombia placed 1st as the country that saw startup funding increase the most in 2019. The Colombian superapp Rappi, with the $1 billion investment led by Softbank last year, was featured with the greatest deal in the country, as Colombia attracted $1.25 billion in venture capital funding during the period.

ALSO READ: Latin America has five fintechs among the 100 most innovative in the world

#4 Mexico

Mexico appeared in the 4th position of Crunchbase’s ranking. The country that watched the business loans platform Konfio and payments device Clip receive an investment of $100 million each, has attracted overall $495 million in VC funding during 2019, a growth of 89% year over year.

#5 Brazil

The country that has one of the most dynamic tech hubs in the world – São Paulo – Brazil placed in the 5th position of the list, with a growth of 79% in VC funding during 2019. The country, however, was the one that attracted the highest investment in total numbers among the Latin American markets: $2.47 billion. Fintech decacorn Nubank, as well as recent unicorns fitness startup Gympass and home rentals QuintoAndar were featured as the players that drew the most striking deals.