Friday, 19 January 2024

This region went from fastest-growing to fast shrinking for startup investment

Plus, Reddit reportedly moves forward with spring IPO plans

January 19, 2024

Hi, Agen. A couple of years ago, Latin America was the fastest-growing region in the world for startup investment, with hot companies from Brazil to Mexico landing huge funding deals. That’s not the case anymore, our data shows. In 2023, Latin America, for the second year in a row, ranked among the fastest shrinking regions for venture capital funding. Plus, Reddit, now almost two decades old, is reportedly moving forward with plans for an IPO this spring.

📉 LatAm went from fastest-growing to shrinking startup investment

Startups in South America and Central America pulled in an estimated $2.9 billion in seed through growth stage investment in 2023, Crunchbase data shows. That’s a remarkable 84% decline from 2021, when investment hit record-setting levels. IPOs and big-ticket acquisitions have become scarcer too.

📱Reddit reportedly moves forward with spring IPO

Reddit’s IPO, reportedly planned for March 2024, would be the first from a social media company since Pinterest’s debut in 2019. It would also follow a prolonged drought for new tech offerings and could help kickstart the IPO market.

💚 4 big themes as green manufacturing startups raise billions

Greener manufacturing emerged as a popular theme even amid a toned-down funding climate last year, with more than $10 billion invested globally across the larger rounds, Crunchbase data shows. We look at some of the top themes investors are backing — from building materials to more environmentally friendly components for transportation.

Related Crunchbase Pro list: Green Manufacturing-Related Funding

🔐 Cybersecurity funding hits 5-year low

Cybersecurity companies raised just $8.2 billion in 692 venture capital deals last year, compared to $16.3 billion in 941 deals in 2022. What does that tell us about the state of startup funding — and valuations — overall?

Related Crunchbase Pro list: Cybersecurity Funding

💸 Which fintech sectors are VCs bullish about in 2024?

Fintech — once the startup sector that drew more money than any other — is no longer the No. 1 investor favorite, but still drew billions of dollars in capital in 2023. We look at what happened with the sector in 2023 and hear from investors about what to expect this year.

Related Crunchbase Pro list: Funding To Financial Services Companies In 2023

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