Scandal and Trump shake Latin American startup stability
Business Management

Scandal and Trump shake Latin American startup stability

The investment landscape for tech startups in Latin America is at an important inflection point. The startup scene is far from the maturity of North America and Europe and continues to meet different hurdles. A mixture of political instability and uncertainty around US trade policy since President Donald Trump was elected has cast a pall over the ecosystem.

LAVCA, an organisation that tracks VC activity in Latin America, published a report into startup investments in 2016, which recorded a record number of deals for the year at 197, up from 182, reaching $500 million in transactions.

At the same time, KPMG’s Venture Pulse report for Q1 2017 noted that Mexico is in a state of flux. With Trump taking the presidency, many investors are opting for a ‘wait and see’ approach to see how things pan out. The report showed a significant drop in both capital invested and deals closed in Q4 2016 compared to Q3.

“The results of the US presidential election are now resonating across the Americas, particularly in Mexico and Latin America,” according to Gerardo Rojas, head of deal advisory, KPMG Mexico. “While investors continue to show an appetite for the region, many are waiting to see what will happen with the economy and trade agreements now that the new US administration is in place.”

 

To continue reading...


Please login or register to view your article. If you do not have or do not remember your password, please click on the “Forgotten your password?” link at the bottom.
If you do not yet have a password but are an existing user, please use the “Forgotten your password?

PREVIOUS ARTICLE

«IDG Research: Younger workers have stronger belief in big data

NEXT ARTICLE

Online voting presents cybersecurity conundrum»
Jonathan Keane

Jonathan Keane is a freelance journalist, living in Ireland, covering business and technology

Add Your Comment

Most Recent Comments

Our Case Studies

IDG Connect delivers full creative solutions to meet all your demand generatlon needs. These cover the full scope of options, from customized content and lead delivery through to fully integrated campaigns.

images

Our Marketing Research

Our in-house analyst and editorial team create a range of insights for the global marketing community. These look at IT buying preferences, the latest soclal media trends and other zeitgeist topics.

images

Poll

Should companies have Bitcoins on hand in preparation for a Ransomware attack?