The Latin America & Caribbean region has emerged as a thriving hub for startup ecosystems, with numerous countries making significant strides in fostering innovation and entrepreneurship. From Brazil to Colombia, Chile to Mexico, these nations are witnessing a surge in startup activity, attracting global attention and investment. In this article, we will explore the state of Latin America & Caribbean startup ecosystems, highlighting key trends, top cities, and notable achievements. You can unlock the full regional data with StartupBlink Pro.
Latin America & Caribbean's Growing Presence in the Index
One of the most noteworthy aspects of the region’s startup ecosystems is the increasing number of cities represented in the global top 1,000. With a total of 77 cities making the list, Latin America & Caribbean are making their mark in the Index. Eleven countries from the region rank in the global top 100, showcasing the widespread nature of entrepreneurial activity.
Leading Countries: Brazil and Beyond
Brazil, as the highest-ranked country in the region, holds the 27th position globally, indicating its strength and potential in the startup landscape. Despite dropping one spot since 2022, Brazil continues to be a prominent player in the Latin America & Caribbean startup ecosystem. Other leading countries include Chile, Mexico, Colombia, and Argentina, although the latter experienced a decrease in rankings this year. Colombia, however, surpassed Argentina, securing the 40th spot and displaying positive momentum in the world’s top 50.
Positive Momentum: Colombia, Ecuador, and Jamaica climbing up in the Index.
While Colombia led the pack in terms of positive momentum, Ecuador and Jamaica also exhibited impressive progress. Ecuador climbed six spots to reach the 81st position, while Jamaica moved up two spots, now ranking 92nd globally. These success stories highlight the growing potential of startups in these countries and their ability to attract attention and investment.
Declining Countries: Argentina, Panama, and Peru
Not all countries experienced positive trends in their rankings. Argentina, Panama, and Peru faced setbacks, losing 10, 8, and 6 spots, respectively. Despite these challenges, these countries still have a strong foundation and the potential to bounce back in the coming years.
Tiered Cities: Exploring the Top Startup Hubs
Among the top cities within the region, they can be categorized into three tiers. São Paulo stands as the undisputed tier 1 regional leader, boasting a score more than 2.5 times that of Mexico City. Mexico City, in turn, maintains a significant advantage over other cities, placing it in tier 2. The third tier comprises Bogota, Santiago, and Buenos Aires, which hold considerably higher scores than other cities in Latin America & Caribbean.
Top 20 Cities: Highlights and Trends
Among the top 20 cities in the region, positive results are evident. Thirteen cities improved their rankings, six experienced a decrease, and one city, Santiago, maintained its global rank from last year. Notable upward movements include Quito, which climbed a remarkable 161 spots to rank 299th globally and 19th regionally.
Medellín also made impressive strides, jumping 37 spots to secure the 168th position globally and breaking into the regional top 10 at 9th place. Similarly, Rio de Janeiro advanced 35 spots to claim the 145th rank globally and the 7th spot regionally. However, some cities faced challenges in maintaining their positions. Monterrey and Lima both dropped 23 spots and currently stand at the 162nd and 201st positions globally, respectively. Buenos Aires also experienced a decrease, losing 19 spots and currently ranking 75th in the world. These trends and movements provide insights into the evolving nature of startup ecosystems in the region.
Government Support and Initiatives: Nurturing Innovation
Despite the challenges and setbacks faced by some countries and cities, the Latin America & Caribbean startup ecosystems continue to exhibit promising growth. Governments, investors, and support organizations have recognized the potential of startups in driving economic development and creating employment opportunities. Initiatives such as tax incentives, funding programs, and incubators have been established to nurture and foster innovation. These government support measures play a crucial role in creating a conducive environment for startups to thrive.
Industry Spotlight: Fintech, Ecommerce, Healthtech, and Edtech
Additionally, the region’s vibrant culture, rich talent pool, and increasing access to technology have contributed to the rise of successful startups. Latin America & Caribbean startups have made significant contributions across various sectors, including fintech, e-commerce, healthtech, and edtech. Their innovative solutions tackle local challenges while also attracting global interest. This sector diversity showcases the range of opportunities available within the startup ecosystems of the region.
Startups from Latin America & Caribbean Startup Ecosystems
- Gupy
Gupy is a recruitment and selection platform that uses artificial intelligence to improve it’s speed and precision.
2. Neon
Neon is a leading digital bank in Brazil.
3. Buk
Buk manages the payroll more effectively, provides powerful performance reports and offers the best talent management tools.
4. Houm
Houm is the easiest way to find and rent a property. With an end to end process 100% online for both the tenant and landlord.
5. Konifo
Konfio is an online lending platform that helps SME in Latin America who don’t have access to credit to obtain affordable loans.
6. Platzi
Platzi offers professional courses with live streaming classes and expert teachers on Programming, Marketing, Design and Business.
7. Workana
Workana is a marketplace for remote and freelance employment targeting Latin America.
8. Vopera
Vopero is an operator of online retail firm intended to re-circulate fashion.
9. Crehana
Crehana is an online training platform targeted towards professionals in the creative and digital industries in Latin America and Spain.
10. HuliHealt
HuliHealth is an online medical appointments service in Costa Rica.
Unicorns from Latin America & Caribbean Startup Ecosystems
Unicorns are startups that reach a valuation of one billion dollars or above. Below are some of the Latin American & Caribbean unicorns from the StartupBlink database. You can view the full list with StartupBlink Pro.
- EBANX
EBANX is an integrated international financial services company that owns the entire value chain for cross-border payment processing, with no intermediaries involved.
2. Loggi
Loggi is a shipping platform that aims to make same-day food delivery and courier services more time and cost efficient.
3. NotCo
NotCo is a Food Tech company that uses artificial intelligence to create delicious, sustainable and accessible foods, all from plants.
4. Betterfly
Betterfly is a purpose-driven benefits platform that rewards healthy habits with charitable donations and no-cost life insurance coverage.
5. Kavak
Kavak is a platform that allows customers to purchase and sell used cars.
6. Rappi
Rappi is a provider of on-demand hyperlocal delivery services on various categories such as food, groceries, medicine, liquor, and more.
7. Habi
Habi is a technology-driven real estate company that helps middle-class customers buy and sell their homes more quickly and efficiently, without the uncertainty of traditional real estate transactions.
8. Ualá
Ualá is a personal financial management mobile app developed in Argentina that allows users to conduct financial transactions.
9. iFood
iFood is a Brazilian on-demand food delivery company which uses innovative technology.
10. QuintoAndar
QuintoAndar is a Brazil-based platform that helps streamline rental processes for tenants and landlords.
Exits from Latin America & Caribbean Startup Ecosystems
Exit for a startup occurs when the founder sells the company’s ownership to an investor or another company. It is a strategy for many startups that have been decided on since their establishment. Here are some of the Latin American & Caribbean startups with massive exits. You can view the full list with StartupBlink Pro.
- NuBank
NuBank is a startup that develops simple, secure and 100% digital solutions for you to have control of your money literally in your hands.
2. Auth0
Auth0 helps enterprises to connect their applications, hosted on-premises, on the cloud or mobile with users wherever they are.
3. Decolar
Decolar is an online travel agency in Latin America.
4. CoreBI
CoreBI is an organization focused on the Data & Analytics segment with data science and engineering services that allows organizations to use the Data as an asset and as a benefit in the decision-making process.
5. VTEX
VTEX focuses on e-commerce strategies for major retailers and consumer brands.
6. dLocal
DLocal is a cross-border payment processor that connects global merchants to emerging markets.
7. Satellogic
Satellogic will democratize access to space-based services by dramatically reducing the barriers to obtain real-time satellite data.
8. PagueVeloz
PagueVeloz offers payment services consisting of ticket receipts, credit card receipts, SMS, bill payments, and check verifications.
9. Dyress
Dyress assists companies to cut down project costs and durations with visual aids for team collaboration.
10. 99
99 provides taxi services through its application software that enables users to request taxis by phone in Brazil.
Pantheon Members from Latin America & Caribbean Startup Ecosystems
The StartupBlink Pantheon members are a selected group of special startup related entities with a substantial footprint on the global startup ecosystem. Here are some Latin America & Caribbean pantheon members. You can view the full list of startup pantheon members with StartupBlink Pro.
- NuBank
NuBank is a startup that develops simple, secure and 100% digital solutions for you to have control of your money literally in your hands.
2. Startup Chile
Start-Up Chile is a seed accelerator created by the Chilean Government based in Santiago, Chile.
3. Rappi
Rappi is a provider of on-demand hyperlocal delivery services on various categories such as food, groceries, medicine, liquor, and more.
4. MercadoLibre
MercadoLibre hosts the largest online commerce and payments ecosystem in Latin America.
Conclusion
In conclusion, with an increasing number of cities and countries making their mark in the global startup ecosystem, this region holds potential for growth and investment. As local governments and support organizations continue to foster a conducive environment for startups, Latin America & Caribbean will undoubtedly continue to shine as a dynamic landscape of innovation. The region’s vibrant startup ecosystems, diverse sectors, and positive trends indicate a bright future for Latin America & Caribbean startups.
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