IPO
Meet Latin America's IPO candidates
January 21, 2022
Following a blockbuster IPO for Brazil's Nubank late last year, a lot is riding on Latin America's remaining IPO hopefuls. Will these tech leaders deliver the kinds of returns that venture capital investors have reaped in other developing markets?
More than 20 VC-backed companies in Latin America are valued at more than $500 million, according to PitchBook data. Valuation alone is not a predictor of whether a company is ready to go public, but none of these companies would be out of place in public markets: In 2021, the median US IPO was valued at $630.8 million.
The region's strongest markets are Brazil and Mexico, which are home to 14 of the 21 most valuable startups, with eight headquartered in São Paulo alone, PitchBook data shows. The most valuable companies include Kavak, last valued at $8.7 billion, Rappi ($5.25 billion) and QuintoAndar ($5.1 billion).
SoftBank Group CEO Marcelo Claure has emerged as a champion of Latin American startups, and the firm has dedicated two funds to the region totaling $8 billion. SoftBank has backed 15 of the 21 most valuable VC-backed companies in the region, putting it at the head of a pack of global investors that includes Endeavor Catalyst, Tiger Global, QED Investors and DST Global.
In 2021, non-domestic firms participated in Latin American VC deals worth more than $10 billion in total, according to a recent PitchBook report. The surge of global investment is largely driven by a belief that growing mobile adoption and financial inclusion in Latin America will lead to economic growth and a windfall for tech companies.
Featured image by Carlos Alkmin/Getty Images
More than 20 VC-backed companies in Latin America are valued at more than $500 million, according to PitchBook data. Valuation alone is not a predictor of whether a company is ready to go public, but none of these companies would be out of place in public markets: In 2021, the median US IPO was valued at $630.8 million.
The region's strongest markets are Brazil and Mexico, which are home to 14 of the 21 most valuable startups, with eight headquartered in São Paulo alone, PitchBook data shows. The most valuable companies include Kavak, last valued at $8.7 billion, Rappi ($5.25 billion) and QuintoAndar ($5.1 billion).
SoftBank Group CEO Marcelo Claure has emerged as a champion of Latin American startups, and the firm has dedicated two funds to the region totaling $8 billion. SoftBank has backed 15 of the 21 most valuable VC-backed companies in the region, putting it at the head of a pack of global investors that includes Endeavor Catalyst, Tiger Global, QED Investors and DST Global.
In 2021, non-domestic firms participated in Latin American VC deals worth more than $10 billion in total, according to a recent PitchBook report. The surge of global investment is largely driven by a belief that growing mobile adoption and financial inclusion in Latin America will lead to economic growth and a windfall for tech companies.
Read more: SoftBank maps out Latin America
Featured image by Carlos Alkmin/Getty Images
Comments:
Thanks for commenting
Our team will review your remarks prior to publishing.
Please check back soon to see them live.