David Velez, Nubanks CEO: Latin America startups facing challenges but opportunities for growth

In a conversation with Marian Acevedo, David Velez highlight the challenges and opportunities of LatinAmerica’s startups:

Highlights:

Latin America has experienced a decrease in funding from global investors, with total funding dropping to 13.3 billion in 2023 compared to 7.5 billion in 2022.

Despite this decline, there is still capital available for startups in the region that demonstrate strong product-market fit and promising unit economics. Startups in Latin America have had to prove their resilience, particularly in segments like Financial Services, which is one of the largest markets in the region.

The region has faced challenges with higher customer acquisition costs and payback periods, especially in the SaaS sector. However, there are opportunities for startups with growth potential and solid unit economics to attract investment.

Latin American startups must focus on key markets like Brazil and Mexico to establish a strong presence in the region and address the specific needs of the local population. By strategically targeting these markets and tackling significant industry challenges, startups can position themselves for success and scalability across Latin America.

Overall, the evolving tech and startup ecosystem in Latin America presents opportunities and challenges for entrepreneurs in the region. By leveraging AI technology to address pressing issues in education, financial services, and healthcare, startups can drive innovation and contribute to the region’s economic growth.

With a focus on building a reputable brand, operating with a long-term perspective, and delivering products and services within key industry segments, startups in Latin America can navigate the competitive landscape and create better valuations for investors.