A new report released by the Latin America Private Capital Investment Association (LAVCA) found that the region’s venture capital (VC) investment has grown sharply compared to the previous year. Overall, investment in the region has more than $ 15 billion and is more than three times that of 2020 registration amount. However, encrypted currency and block chain investment increased by nearly 10 times.
Encrypted currency investment in Latin America exceeds traditional venture capital
A new report released by the Latin American Private Capital Investment Association (LAVCA) details the development of the regional venture capital (VC), and emphasized that these companies have a strong interest in encrypted currencies in 2021. The report found that in terms of venture capital, the region has experienced significant growth, and it is more than three times the number of registered numbers in the previous year. In 2020, LAVCA registered a risk investment of $ 4.14 billion, which was peak at the peak period. Last year, this number reached $ 15.7 billion.
Investment in DEFI, block chains, and encrypted currency far exceeds investment growth rates in traditional fields. According to the number registered in the report, in view of the increasing interest in replacement investment tools, these investments have reached $ 653 million in 2021, which is nearly 10 times higher than the number of registered in 2020 ($ 68 million).
However, the financial science and technology industry has experienced a relatively large trading, and the investment of $ 6.1 billion in 258 transactions, which has increased nearly four times compared with 2020.
A large number of growth, minorities
Although the industry has experienced explosive growth last year, it is mainly concentrated in a few companies that control the company’s encrypted currency industry. Most of the $ 653 million investment is allocated to the financing rounds of four companies.
Mercado Bitcoin is one of the largest encryption currency exchanges in the region and has registered 290 million US dollars in three rounds of financing. Bitso (an encrypted currency platform in Mexico) received $ 250 million in investment. The other two largest platforms invested by venture capital companies are Ripio – this is a Argentine Exchange, a 50 million US dollars in a round of financing in DCG – and another Argentina Exchange Lemon Cash ($ 17.3 million).
However, in terms of encryption investment in the region, it is not just a consumer exchange and trading platform. The report pointed out that in the first few months of 2022, there were other investments in the B2B (enterprise) service. These include Liqi, Gavea Marketplace and Agrotoken (all $ 5 million).