For the third quarter previously yr, Mexico-based corporations raised extra enterprise capital in Q2 than their Brazilian counterparts, Crunchbase information on startup funding in Latin America reveals, as Silicon Valley traders together with Founders Fund and Andreessen Horowitz (a16z) led among the largest offers within the area.
Mexico’s startups led the LatAm pack in Q2 — by a large margin. The nation’s startups raised $944 million within the second quarter, up 131% in comparison with $409 million in final yr’s Q2, and up 136% from the $401 million raised on this yr’s first quarter, per Crunchbase information. For comparability’s sake, that’s nearly as a lot as Latin American startups as an entire raised within the second quarter of 2025.
Notably, Mexico-based corporations accounted for the area’s three largest fundraising offers within the quarter ended June 30.
In the meantime, Brazil-headquartered startups raised $350 million in Q2 2026, down 11% from the $363 million raised in Q2 2025, however up 20% from the $270 million raised in Q1 2026.
Usually, a continued increase in late-stage and development funding helped buoy the area for the interval, Crunchbase information reveals. Startups in Latin America raised a mixed $1.36 billion throughout seed- and growth-stage offers within the second quarter, up 47% yr over yr and 22% from the primary quarter.
For perspective, we charted out whole funding, color-coded by stage, for the previous 10 quarters beneath.
Of that whole, $991 million went into late-stage and development offers, up 84% yr over yr and 30% in comparison with the primary quarter of 2026.
Spherical counts declined sequentially and year-over-year throughout angel, seed and early phases. (We count on the Q2 deal depend to rise considerably over time, nonetheless, as seed rounds particularly are generally reported weeks or months after they shut.)
Desk of contents
Late-stage increase
There have been 5 nine-figure raises in Latin America within the second quarter, and as talked about earlier, three of these had been by Mexico Metropolis-based corporations. Apparently, a number of of the offers had been led by U.S.-based companies.
In June, funds startup Clip raised $500 million at a valuation exceeding $2.5 billion in a private-equity cope with undisclosed traders.
In April, digital financial institution Plata raised $405 million in a Collection C spherical led by Miami-based Bicycle Capital at a $5 billion valuation.
And in February, Kavak, a startup that operates a pre-owned automotive market, raised $300 million in a Collection F financing co-led by Laguna Seaside, California-based WCM Funding Administration and Menlo Park-based Andreessen Horowitz. Notably, the spherical was reported to be a16z’s largest funding in Latin America and the primary within the area for its development fund.
Different massive offers in Latin America in the identical interval included a $195 million spherical for Argentinian digital financial institution Ualá in March, led by Germany’s Allianz X at a $3.2 billion valuation. And, Sao Paulo-based legaltech startup Enter raised a $100 million Collection B led by San Francisco-based Founders Fund.
Investor POV
A number of traders who spoke with Crunchbase Information described a considerably slower tempo within the area. Miguel Armaza, co-founder and basic companion of New York-based Gilgamesh Ventures, mentioned the agency stays lively, though its investments to date this yr have been in U.S. and European corporations. It has seen much less early-stage fintech exercise in Latin America however expects to make new investments within the area, given its present pipeline.
The area’s underlying fundamentals stay intact and fintech adoption continues to develop, he mentioned.
Ana Cristina Gadala-Maria, principal at Alexandria, Virginia-based QED Buyers, mentioned her agency’s tempo in Latin America has additionally slowed, largely as a result of it’s more and more investing round international themes somewhat than particular person geographies. As QED focuses extra closely on stablecoins and synthetic intelligence, lots of the most compelling startups it encounters function globally, with Latin America representing one among a number of vital markets, she mentioned.
Inside Latin America, QED usually invests on the later Collection B stage.
Federico Antoni, managing companion at Mexico Metropolis-based Hello Ventures, mentioned the agency’s funding tempo has remained constant.
Brazil and Mexico proceed to draw the majority of all three companies’ exercise, however the traders famous that promising corporations are additionally rising elsewhere within the area.
Armaza cited portfolio successes together with Uruguay-based Brinta, which was acquired this yr by U.S. public firm Vertex; Argentina’s Pomelo, which raised a $55 million Collection C in January; and Venezuela’s Tesote, which serves CFOs and company treasury groups.
“I feel that is an underrated LatAm story proper now: The periphery can also be producing huge successes,” he mentioned.
The US-LatAm connection
The traders are additionally monitoring an more and more fluid relationship between Latin America and U.S. know-how hubs.
Hello Ventures, which is now centered nearly solely on AI functions, has expanded its technique to incorporate Latin American founders constructing corporations within the San Francisco Bay Space. About half of its portfolio relies in San Francisco, together with corporations led by founders initially from Mexico, Brazil, Chile and Argentina.
“We more and more consider the ecosystem as one linked innovation community somewhat than separate geographies,” Antoni mentioned.
Armaza has noticed an analogous pattern amongst each repeat and first-time entrepreneurs who’re relocating to San Francisco or New York to construct U.S. or international corporations from the outset.
“The expertise continues to be LatAm expertise, however the firm formation is more and more occurring right here,” he mentioned.
The New York-based agency’s sector focus stays on early-stage corporations growing monetary and industrial infrastructure.
At QED, in the meantime, stablecoins, tokenization and digital property have turn out to be a considerably bigger a part of the funding technique than they had been a number of years in the past, significantly on the infrastructure layer. The agency can also be within the intersection of AI and fintech, together with functions that enhance monetary operations and buyer experiences or broaden entry to monetary providers.
General funding in Latin America stays far beneath its 2021 peak and has returned to roughly 2019 ranges in each capital deployed and deal quantity.
However at this time’s market differs from 2019 in a single important respect, Antoni famous: AI permits founders to construct corporations and attain significant milestones with significantly much less capital. That shift might significantly profit Latin American entrepreneurs accustomed to working with restricted assets.
“The area has at all times produced resourceful founders, and at this time’s surroundings rewards capital effectivity somewhat than aggressive spending,” he mentioned.
The brink for securing funding, significantly on the Collection A stage and past, has nonetheless risen significantly. Buyers are nonetheless deploying capital, Antoni mentioned, however extra selectively.
Armaza famous that international traders have traditionally cycled out and in of Latin America, significantly companies with out devoted regional groups or native roots. However the area’s largest rounds in 2026 have attracted companies together with Sequoia Capital, Andreessen Horowitz, Tencent, Allianz X and Goodwater Capital.
“This tells you that the very best capital on this planet finds nice corporations, no matter macro sentiment,” Armaza mentioned.
Current public-market exercise by Brazilian fintech corporations might additional enhance the funding prospects for later-stage startups. Gadala-Maria mentioned the truth that two of fintech’s three IPOs have come from Brazil serves as an vital sign that Latin America can produce sturdy, high-quality fintech corporations able to reaching ample scale to enter the general public markets.
The newly public corporations additionally present comparables that traders can use to guage the subsequent technology of later-stage Latin American fintech corporations, doubtlessly giving them better confidence in underwriting these companies. QED has a number of Latin American portfolio corporations that might pursue public listings if market situations and timing had been favorable, Gadala-Maria mentioned.
Associated studying:
Methodology
The information contained on this report comes instantly from Crunchbase, and relies on reported information. Information is as of July 9, 2026.
Word that information lags are most pronounced on the earliest phases of enterprise exercise, with seed funding quantities rising considerably after the top of 1 / 4/yr.
Please be aware that each one funding values are given in U.S. {dollars} except in any other case famous.
Crunchbase converts foreign exchange to U.S. {dollars} on the prevailing spot fee from the date funding rounds, acquisitions, IPOs and different monetary occasions are reported. Even when these occasions had been added to Crunchbase lengthy after the occasion was introduced, overseas forex transactions are transformed on the historic spot worth.
Glossary of funding phrases
Seed and angel consists of seed, pre-seed and angel rounds. Crunchbase additionally consists of enterprise rounds of unknown sequence, fairness crowdfunding and convertible notes at $3 million (USD or as-converted USD equal) or much less.
Early-stage consists of Collection A and Collection B rounds, in addition to different spherical varieties. Crunchbase consists of enterprise rounds of unknown sequence, company enterprise and different rounds above $3 million, and people lower than or equal to $15 million.
Late-stage consists of Collection C, Collection D, Collection E and later-lettered enterprise rounds following the “Collection [Letter]” naming conference. Additionally included are enterprise rounds of unknown sequence, company enterprise and different rounds above $15 million. Company rounds are solely included if an organization has raised an fairness funding at seed by a enterprise sequence funding spherical.
Know-how development is a private-equity spherical raised by an organization that has beforehand raised a “enterprise” spherical. (So mainly, any spherical from the beforehand outlined phases.)
Illustration: Dom Guzman
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