A continued boom in late-stage and growth funding combined with a surge in seed-stage funding helped buoy venture investment in Latin America for the third quarter of 2026, Crunchbase data shows.
All told, startups in Latin America raised a combined $1.3 billion across seed- and growth-stage deals in the three-month period ending Sept. 30. That was up 26% year over year but down 9% from the second quarter.
For perspective, we charted out total investment, color-coded by stage, for the past 12 quarters below.
Of the quarterly total, $757 million went into late-stage and growth deals, up 74% compared to the $435 million that flowed into such deals in the third quarter of 2025. However, that is down 21.3% from the $962 million in late-stage and growth rounds raised by LatAm startups in the second quarter. (Although it’s worth noting that Q2 2026 represented the most raised at that stage since the second quarter of 2022.)
Mexico startups have raised $1.52 billion in venture funding during the first three quarters of 2026, per Crunchbase data. Notably, that’s about 40.7% more than the $1.08 billion Brazil’s startups raised in the same period. This is unusual as Brazil has historically been the largest recipient of venture funding in Latin America.
Still, Brazil continues to attract a broad range of investors.
“Over the past year, we have seen investments into Brazil from firms including Sequoia, Founders Fund, NEA, Battery and Tidemark,” Allen Taylor, managing partner of Endeavor Catalyst, told Crunchbase News. “For several, this marked either their first investment in Latin America or their first in a long time.”
Igor Piquet, Endeavor Catalyst’s vice president and head of Latin America, noted that Mexico drew more venture funding in the first half of 2026 than Brazil. But much of Mexico’s funding went to a few startups, he pointed out, while Brazil recorded many deals.
“Investors are concentrating on a few Mexican winners, while Brazil retains the breadth,” Piquet said, adding that Brazil also leads in realized exits.
Table of contents
- Outsized rounds
- An uptick in seed funding
- ‘Another rediscovery moment’
- Methodology
- Glossary of funding terms
Outsized rounds
Several mega-raises took place in Latin America in the third quarter. And notably, the two largest funding deals were not for companies in Brazil or Mexico, which have historically raised the largest share of venture capital in the region. They also weren’t to fintech, which typically has the most funding recipients in the region, but rather to energy-related startups.
Black Giant, the Chilean project company for EnergyX’s Black Giant lithium project, raised $225 million in a July round at a reported $900 million valuation. And Colombia’s Erco Energía, a clean energy company that builds and operates solar power systems for homes and businesses, landed a $129 million Series C in August at a reported $600 million valuation.
Mexico’s Kapital, an AI-powered financial services company, raised a $125 million Series C in September at a $1.6 billion valuation. Tru Arrow Partners and Fasanara Capital co-led the financing.
And in August, Brazilian fintech Kesh Bank brought in $106.9 million in an equity and debt seed round at a $626 million valuation.
Also in August, Brazil’s Decade, an AI-native wealth advisory company, landed $85 million in what Crunchbase data shows is the largest seed funding deal ever raised for a Latin American startup. Founded by Vitor Olivier, former CTO of Nubank, and Felipe Meneses, founder of Hyperplane AI, the startup is backed by Benchmark, Greenoaks, Diffusion, Norte Ventures and Atlantico.
An uptick in seed funding
Latin America experienced a marked surge in very early-stage funding totals in the third quarter, largely thanks to the seed rounds mentioned above.
Of the $1.3 billion raised by Latin America’s startups in the third quarter, about 20.5% — or $266 million — was raised across the angel and seed stages.
That’s up 128% from the $117 million raised across those stages in the second quarter of 2026, and up 62% from the $165 million in the same quarter last year.
Just over 22%, or $288 million, was raised at early stages, down 18.9% from $355 million in the second quarter and 34% from $437 million in the same period last year.
We expect the Q3 deal counts to rise somewhat over time; however, as seed rounds in particular are commonly reported weeks or months after they close.
‘Another rediscovery moment’
Latin America is drawing renewed interest from international venture investors, according to Endeavor’s Taylor. He said international VCs were more active in the region, particularly Brazil, during the first three quarters of 2026 than in 2024 and 2025 combined, through both new investments and follow-on funding.
“I joke that investors from the U.S. ‘rediscover’ Latin America every five or six years, and I think we are approaching another rediscovery moment,” Taylor told Crunchbase News.
Endeavor Catalyst recently closed its oversubscribed $320 million fifth fund. Latin America accounts for nearly 40% of its portfolio by both deals and dollars, and Fund V had made 14 investments in the region as of Sept. 22. Taylor also pointed to opportunities beyond Brazil and Mexico, including repeat founders building global businesses from Colombia and emerging companies in Venezuela and Central America.
Liquidity is improving, although acquisitions and secondary transactions are providing more opportunities than public listings, Piquet said. He pointed to approximately 60 private Latin American technology companies that have each raised at least $150 million as a potential pipeline for future IPOs.
“The exit door is open, although it is not primarily opening through IPOs yet,” Piquet said.
Taylor expects more exits could help bring global investors back consistently, with potential New York Stock Exchange listings by companies such as Wellhub, CloudWalk or Creditas contributing to another “rediscovery moment” in 2027.
International investors remain interested in Latin America but have become more selective about deploying capital, according to Ana Cristina Gadala-Maria of QED Investors. Firms with a longstanding presence in the region remain engaged, while many that entered during the 2020–2021 investment boom have shifted toward AI opportunities elsewhere and are concentrating on existing portfolios, she noted.
“Global investors are increasingly investing behind themes rather than geographies,” she said, putting Latin American startups in more direct competition with companies in the U.S. and other markets.
Investor interest is increasingly centered on AI-native businesses and financial infrastructure, particularly stablecoins and cross-border payments. Gadala-Maria said more founders are targeting global markets from the outset, marking a departure from the previous wave of startups that adapted established business models to underserved local markets.
“Increasingly, we’re seeing founders build globally competitive technology companies from Latin America, rather than necessarily for Latin America,” she said.
Gadala-Maria agrees that Brazil and Mexico remain the region’s largest markets, with Brazil offering a deeper, more mature startup ecosystem and Mexico providing substantial room for financial services innovation. She pointed to Argentina as an overlooked market, citing its strong technical talent and founders building companies for global customers.
Related Crunchbase queries:
Methodology
The data contained in this report comes directly from Crunchbase, and is based on reported data. Data is as of Oct. 5, 2026.
Note that data lags are most pronounced at the earliest stages of venture activity, with seed funding amounts increasing significantly after the end of a quarter/year.
Please note that all funding values are given in U.S. dollars unless otherwise noted.
Crunchbase converts foreign currencies to U.S. dollars at the prevailing spot rate from the date funding rounds, acquisitions, IPOs and other financial events are reported. Even if those events were added to Crunchbase long after the event was announced, foreign currency transactions are converted at the historic spot price.
Glossary of funding terms
Seed and angel consists of seed, pre-seed and angel rounds. Crunchbase also includes venture rounds of unknown series, equity crowdfunding and convertible notes at $3 million (USD or as-converted USD equivalent) or less.
Early-stage consists of Series A and Series B rounds, as well as other round types. Crunchbase includes venture rounds of unknown series, corporate venture and other rounds above $3 million, and those less than or equal to $15 million.
Late-stage consists of Series C, Series D, Series E and later-lettered venture rounds following the “Series [Letter]” naming convention. Also included are venture rounds of unknown series, corporate venture and other rounds above $15 million. Corporate rounds are only included if a company has raised an equity funding at seed through a venture series funding round.
Technology growth is a private-equity round raised by a company that has previously raised a “venture” round. (So basically, any round from the previously defined stages.)
Illustration: Dom Guzman