Latin America’s tech-savvy workforce has attracted international companies to maintain support offices in the region for years.Infact, the venture capital investment in Latin America has doubled every year since 2016, reaching an all-time high of US$4.6B in 2019. However, the recent government commitment to develop innovation hubs, coupled with a growing middle class that lead in the adoption of mobile devices, has made Latin America prime territory for global tech companies to target local consumers.
Amazon has been expanding its operations globally for years – most notably its cloud computing operations and services. In Latin America, Amazon Web Services (AWS) recently set up a new data center in Argentina, adding to its list of existing offices in Brazil, Chile, Colombia, and Mexico. The addition of an AWS center in Argentina signifies just how important Amazon’s cloud computing services have become for tech companies in the region, and that the demand for these services is growing. Having a data center nearby helps companies reduce costs and improve data speeds, eliminating the need to rely on services outside of their country or region.
From services for small business owners to greater retail options, many industries in Latin America remain underserved by technology, and Amazon, Google, and Alibaba certainly aren’t the only ones that have taken note. For instance, Latin America is currently a top growth market for Spotify and Netflix as well. Mexico and Brazil are top markets for Facebook Messenger, Instagram, and WhatsApp in terms of monthly users. In fact, almost 100percent of connected Brazilians use WhatsApp. The global ride-hailing leader, Uber, has also noted that its top three cities by volume are all in Latin America.
However, despite years of hard work to get to this point, the region now faces unprecedented challenges to maintain it.Between Q4 2019 and Q1 2020, deal count in Latin America dropped almost 60percent. In addition, the COVID-19 crisis is causing both local and global investors to rethink their strategies, and while deals are still happening, many VCs are doubling down on support for existing portfolio companies and shying away from new deals.
Start-ups across Latin America have proven their resilience to economic shocks time and time again. Entrepreneurs know how to survive and thrive during economic hard times. In fact, vibrant tech hubs have blossomed in countries like Argentina, Brazil, and Colombia despite periods of political and economic uncertainty.
We present to you “Top 10 Latin America Startups– 2020”