Latin American startups raised $1.8 billion in the first half of 2025
Find out which tech sectors and countries performed the most and the least.
After two years of bruising pullbacks, Latin America’s startup funding space is finally showing signs of life. But this isn’t the kind of broad recovery founders had hoped for. It’s concentrated, uneven, and driven by just a few bright spots.
Startups in the region raised ~$1.8 billion in the first half of 2025, according to Crunchbase — a 35% jump from H1 2024’s $1.3 billion and slightly ahead of the $1.6 billion posted in H2 2025. It’s the region's strongest six-month run since early 2022, with a surprisingly solid $961 million in Q2 alone, up 16% YoY and 13% compared to Q1 2025 (~$850M).
Still, beneath those headline numbers, the dynamics are shifting, and not everyone is benefiting equally.
Nowhere is that more evident than in Mexico
Mexico surpassed Brazil in Q2 2025 for the first time in over a decade, with $437 million raised, edging past its southern neighbor for the first time since 2013. That milestone was more than symbolic. Klar’s $170 million raise, the largest private tech round in Mexican history, set the tone.
Valued at $800 million, the BNPL startup drew global attention, but it wasn’t alone. A strong supporting cast of mid-stage raises from Jüsto, Zubale, and Kavak added another $120 million, signaling renewed confidence in Mexico’s fintech and mobility sectors.
Brazil, meanwhile, saw its momentum stall. The country’s Q2 2025 funding dropped 23% year-over-year, landing at $350 million, and most of that was concentrated in New Wave’s $120 million clean mining round. Outside that deal, investor interest thinned out, and average deal size shrank by nearly 30%, pointing to fading confidence in Brazil’s later-stage pipeline and mounting caution among VCs.
Emmanuel Oyedeji
Beyond the two major markets, most of the region is still struggling to bounce back. Argentina raised just $78 million in H1, down from $110 million a year ago, as inflation and investor uncertainty continue to weigh heavily. Colombia, once one of Latin America’s fastest risers, posted $92 million, mostly from smaller seed and early-stage deals.
None of its startups cleared the $50 million mark, and global funds are keeping their distance. Chile was the only real outlier, bringing in $110 million, largely thanks to activity in clean energy and logistics, though even that’s modest in the broader regional context.
That shift at the top reveals deeper fractures in the region’s deal space
Of the $961 million raised in Q2 2025, $300 million came from late-stage deals and another $247 million from technology growth rounds, together accounting for $547 million, or over 57% of the total. That’s one of the highest late/growth-stage shares Latin America has seen in recent memory, and a clear signal that investors are leaning into safer bets with proven traction and near-term paths to liquidity.
But early-stage capital is still wobbly. Series A and B startups started strong in Q1 2025 with $454 million, but slipped to $309 million in Q2, pulling the H1 total to $763 million, just a modest gain from the $667 million posted in H2 2024. The softer Q2 points to a slowdown in momentum, and while this tier remains relatively resilient, it’s starting to show signs of pressure.
Seed and angel funding, however, is still stuck in decline. Startups in this category raised just $124 million in Q1 and $105 million in Q2 — a combined $229 million for H1. That’s lower than every half-year total in 2024, and the smallest since mid-2023. With fewer early bets being made, the region could be headed toward a pipeline crunch in the next 12–18 months.
What’s driving the bulk of funding remains familiar
Fintech accounted for 44% of all H1 2025 funding — about $792 million — and once again led the charge. Klar was the obvious standout, but other big raises like Addi in Colombia and Pomelo in Argentina reflected a growing preference for infrastructure plays, embedded finance, and B2B models. These are safer, leaner bets, and for many investors, that’s exactly the appeal.
But fintech wasn’t the only sector to draw attention. Climate tech quietly surged in Q2, bringing in $321 million across clean energy, water efficiency, and carbon-tracking startups.
Other categories like healthtech, proptech, and agtech remained active, but funding was scattered and inconsistent. None emerged as clear winners this cycle, making it hard to tell whether interest is returning or if investors are still in wait-and-see mode.
Emmanuel Oyedeji
Meanwhile, exits, while still rare, are trending in the right direction.
Q2 2025 saw seven disclosed startup exits, totaling $340 million, a modest improvement from Q1. Most were local acquisitions, and no unicorn-level outcomes were recorded, but insiders see signs of life. Private equity interest in secondaries is also rising, hinting at the return of liquidity, even if it’s happening quietly.
Still, it’s too early to call this a full-fledged comeback.
The late-stage surge and fintech dominance offer hope, but unless early-stage capital spreads beyond the usual suspects, and unless more sectors start showing consistent traction, Latin America’s rebound will remain more flicker than flame.
