Private capital investment reached a record $29.4 billion in Latin America last year, according to the latest report from private capital association Lavca.
Digital infrastructure – fiber optic networks, towers, data centers – attracted one in three dollars invested in infrastructure, with US$2.1 billion spent primarily in Chile, Colombia and Mexico. Compared to 2020, investments increased by 141%.
The main investors in digital infrastructure were KKR, I Square Capital and Digital Bridge.
Conventional energy attracted $2 billion and investment in transportation infrastructure increased 375% to $1.6 billion.
Brazil Captured $13.9 billion, or 48% of total invested capital, followed by Mexico ($5.5 billion), Colombia ($3.4 billion), Chile ($3.3 billion) and Argentina ($1.2 billion dollars).
Venture capital investment hit a record $15.7 billion, “more than Latin American startups raised in the previous decade,” Lavca said.
In 2021, venture capital reached 54% of total private capital investment, up from 25% in 2020.
Last year, 16 startups surpassed US$1 billion in disclosed valuation. The biggest venture capital deals have involved rounds from Nubank (Brazil), Rappi (Colombia), Notco (Chile), TiendaNube (Argentina), Loft (Brazil), Merama (Mexico) and CargoX (Brazil).
Fintech dominates venture capital investment, followed by e-commerce. The two sectors attracted 64% of total VC spending in the region.