INSUBCONTINENT EXCLUSIVE:
Greg MitchellContributorGreg Mitchell is regional director of Angel Ventures, a startup investor and advisor and is the creator of the blog
Ruta Startup. Funding of Latin American startups has doubled each year over the past two years.And while most of this capital has been
The increased availability of capital for later rounds is creating more opportunities for startups to scale both regionally and globally
And while it may not be one of the largest countries in Latin America, Peru continues to have one of the best-performing economies and
fastest-growing startup scenes.In 2019, a new record was set for the amount of capital invested into Peruvian startups, at least $11
million, a 24% increase compared to 2018
Most of the money went to fintech (47%) and edtech (37%) startups
Over the past four years, more than $22.7 million in public funds went toward startup-related projects as well.The government-backed
Total venture capital investment will likely exceed US$25 million in 2020, doubling what was achieved in 2019, and will continue to grow
While there are plenty of opportunities to secure seed-stage capital in Peru, many startups still have to look abroad for growth capital
Keynua, Xertica, Turismoi and Runa are just a few of the Peruvian startups that sought international investors to lead their rounds over $1
Following in the path of similar funds, the fund of funds will invest $20 million in half a dozen venture capital firms, which would in turn
invest in approximately 120 startups.As government support for entrepreneurs continues to pour in, the Peruvian startup ecosystem is
More and more startups are launching, graduating from accelerator programs and seeking ways to reach their next milestone
Local early-stage investors are stepping in to fill the financing gap and have teamed up to form the Peruvian Seed and Venture Capital
Association, PECAP, to share investment opportunities and lay a strong foundation for venture capital in Peru
boom is playing out across Latin America, with the size of the industry expected to exceed $150 billion by 2021
small and medium-sized businesses
factoring and foreign exchange, where a number of startups are quickly gaining traction and already branching out to neighboring markets
Innova Funding, Innova Factoring, Facturedo, Kambista and Rextie are just a few examples
countries.In 2019, Peruvian fintechs Keynua and Apurata were selected for the Y Combinator accelerator program, putting them on the
Traditional banks in Peru are also shifting their mindsets and warming up to fintech partnerships
The publicly traded Peruvian bank, Credicorp, for example, recently set up a corporate venture fund called Krealo
The bank made its first investments in Culqi, a local payments gateway, and Independencia, a lending platform.Impact investing
opportunitiesLatin America is a top destination for impact investment capital, outpacing many other regions in the world, with a 15%
compound annual growth rate over the last five years, according to the Global Impact Investing Network
Edtech represents a rising entry point across the region for impact investors thanks to its potential for both financial and non-financial
returns.According to an OECD report, approximately 30 million young people in Latin America are not participating in any form of education,
training or employment, and 76% of this total are women
Laboratoria, co-founded by edtech thought leader Mariana Costa Checa, helps women develop technical skills and has expanded across the
region from its headquarters in Lima to train more than 1,000 women so far
The startup has received praise from global companies, including Walmart and Facebook
In 2019, the skills development platform Crehana raised the largest-ever round for a Peruvian startup ($4.5 million) from both regional and
global funds.Peru attracted more impact investment capital than Mexico, a longtime leader in the region, for the first time in 2018
Local startups are addressing everything from early childhood education to workforce training, and as more success stories emerge, more
are now accelerating, incubating and investing in Peruvian startups
New startup creation is at its highest rate ever; however, these companies are outgrowing their angel and seed-stage supporters and are now
seeking ways to take their ventures to the next level.Over the past few years, Latin America has proven that it is a place where startups
effectively and bring impactful solutions to millions of people across the region.*Angel Ventures was an investor in Culqi before it was
Neither Angel Ventures nor Greg Mitchell currently hold any shares.
