SoftBank's $5B Latin America Fund Backed by Record Venture Growth
SoftBank's new $5 billion innovation fund for Latin America aligns with a massive surge in regional venture capital, which more than doubles to $1.14 billion in 2017 and continues to climb.
SoftBank launches a $5 billion innovation fund for Latin America, a move that directly aligns with explosive venture capital growth in the region. Data from the Latin American Venture Capital Association (LAVCA) shows that VC funding more than doubles to $1.14 billion in 2017, up from $500 million in 2016, with projections putting 2018 investments at over $1.5 billion. When combined with private equity, overall fundraising in the region reaches an impressive $4.3 billion in 2017.
This financial momentum brings a significant increase in global players entering the market, alongside a noticeable rise in mega-rounds of $100 million or more. Brazil dominates the landscape by capturing 73 percent of all regional VC dollars, while Mexico leads in the total number of deals. Colombia also stands out by securing more total invested capital than Mexico despite completing fewer transactions.
Several massive deals highlight this rapid maturation, including Colombian delivery startup Rappi raising over $400 million across two rounds. Brazilian fintech giant Nubank pulls in $330 million, and Movile secures $124 million for its iFood platform. Even regional venture firms like Monashees experience immense success, demonstrating that Latin America's tech ecosystem is expanding at an unprecedented pace.