The Association for Private Capital Investment in Latin America (LAVCA) is a not-for-profit membership organization that is dedicated to supporting the growth of private equity and venture capital in Latin America and the Caribbean. LAVCA was founded in 2002 and has since become the leading source of information and analysis on private capital investment in the region.
The organization’s mission is to help build a sustainable venture capital and private equity industry in Latin America by providing research, education, networking, and advocacy services to its members.
LAVCA’s impact on the Latin American investment landscape has been significant. The organization has helped to attract more global investors to the region, which has led to increased investment in local startups and a growing number of successful exits. LAVCA has also played a key role in shaping the regulatory environment for private capital investment in Latin America, advocating for policies that support the growth of the industry and protect the interests of investors and entrepreneurs.
Key Takeaways
- LAVCA is a not-for-profit membership organization that supports the growth of private equity and venture capital in Latin America and the Caribbean through research, education, networking, and advocacy services.
- LAVCA has had a significant impact on the Latin American investment landscape, attracting more global investors to the region and shaping the regulatory environment for private capital investment.
- The organization’s mission is to help build a sustainable venture capital and private equity industry in Latin America, which has led to increased investment in local startups and a growing number of successful exits.
Overview of the Association for Private Capital Investment in Latin America
The Association for Private Capital Investment in Latin America (LAVCA) is a non-profit organization that aims to promote private capital investment in Latin America. It was founded in 2002 and has its headquarters in New York City.
LAVCA’s mission is to support the growth of the private capital industry in Latin America by providing education and networking opportunities to its members. Its members include private equity and venture capital firms, institutional investors, and other professionals involved in the private capital industry in Latin America.
LAVCA offers a range of programs and events to its members, including conferences, seminars, and webinars. These events provide members with opportunities to network with other professionals in the industry, learn about the latest trends and best practices, and share their experiences and insights.
In addition to its events, LAVCA also provides research and data on the private capital industry in Latin America. Its annual review of tech investment in Latin America is a widely cited source of information on the industry. LAVCA also publishes reports on specific topics, such as gender diversity in the industry.
Overall, LAVCA plays an important role in promoting private capital investment in Latin America. Its programs and events help to build a strong network of professionals in the industry, while its research and data provide valuable insights into the trends and opportunities in the region.
Role and Impact in Latin America
The Association for Private Capital Investment in Latin America (LAVCA) is a not-for-profit membership organization dedicated to supporting the growth of private capital in Latin America. LAVCA’s work is focused on building the venture capital and private equity industry in the region through education, research, and advocacy.
LAVCA plays a significant role in promoting private capital investment in Latin America. The organization has been instrumental in attracting foreign investors to the region, increasing the flow of capital to local businesses, and promoting economic growth. LAVCA’s efforts have helped to establish Latin America as a major market for private capital investment, with Mexico, Colombia, and the Caribbean being some of the most active regions.
LAVCA’s advocacy efforts have been particularly impactful in shaping the regulatory environment in the region. The organization has worked closely with governments and other stakeholders to promote policies that are conducive to private capital investment. LAVCA has also been active in promoting environmental, social, and governance (ESG) considerations in private capital investment.
LAVCA’s research and education initiatives have also been critical in promoting private capital investment in Latin America. The organization provides valuable data and insights on the private capital industry in the region, which helps investors to make informed investment decisions. LAVCA also offers training programs and other educational resources to help build the skills and knowledge of local investors and entrepreneurs.
Overall, LAVCA has played a critical role in promoting private capital investment in Latin America. The organization’s efforts have helped to attract foreign investors, increase the flow of capital to local businesses, and promote economic growth in the region. LAVCA’s advocacy, research, and education initiatives have been particularly impactful in shaping the regulatory environment and promoting ESG considerations in private capital investment.
Investment Focus and Trends
The Association for Private Capital Investment in Latin America (LAVCA) is focused on building the venture capital and private equity industry in Latin America. LAVCA’s members are interested in investing in a variety of sectors, including e-commerce, health, real estate, and impact investing.
In recent years, venture capital investments in Latin America have skyrocketed, reaching unprecedented levels. In 2021, VC investments in the region reached $11.5 billion, up from $4.3 billion in 2019. This growth is expected to continue in the coming years, as investors see opportunities in a range of sectors.
One area of focus for private capital investors in Latin America is unicorns, or startups that have achieved a valuation of $1 billion or more. In recent years, several Latin American unicorns have emerged, including Nubank, Rappi, and iFood. These companies have attracted significant investment from both domestic and international investors.
Another trend in Latin American private capital investment is the increasing focus on impact investing. According to a report by LAVCA, investors plan to deploy an additional $2 billion in impact investing capital in the region over the next two years. This trend reflects a growing interest among investors in using their capital to drive positive social and environmental outcomes.
Overall, the private capital investment landscape in Latin America is dynamic and growing rapidly. Investors are finding opportunities across a range of sectors and are increasingly focused on impact investing and supporting the growth of unicorns in the region.
Members and Partners
The Association for Private Capital Investment in Latin America (LAVCA) has a diverse group of members and partners who are qualified investors and industry professionals in the Latin America private capital community. LAVCA members include Private Equity Fund Managers, Venture Capital Fund Managers, Real Assets Investors, Family Offices, Development Banks, Pension Funds, Corporate Investors, Fund of Funds, Secondaries, Sovereign Wealth Funds, and others.
LAVCA members have access to exclusive industry data, research, and analysis, as well as networking opportunities and educational programs that promote the growth of the private equity and venture capital industry in Latin America. Some of the notable LAVCA members include SoftBank, Valor Capital Group, Kaszek, Canary, Warburg Pincus, Atlantico, and Ignia Partners.
SoftBank, a global technology investment firm, has been actively investing in Latin America since 2019, with a focus on supporting companies that are transforming industries through technology. SoftBank has partnered with several LAVCA members, including Kaszek and Valor Capital Group, to invest in innovative startups in the region.
Valor Capital Group is a venture capital firm that invests in early-stage technology companies in Brazil and the United States. The firm has a strong track record of supporting companies that are disrupting traditional industries with innovative technologies. Valor Capital Group has been a long-standing LAVCA member and has participated in many of the association’s events and programs.
Kaszek is a leading venture capital firm that invests in early-stage technology companies in Latin America. The firm has a portfolio of successful companies, including Nubank, Gympass, and Creditas. Kaszek has been an active LAVCA member since 2011 and has played a key role in promoting the growth of the venture capital industry in the region.
Canary is a Brazilian venture capital firm that invests in early-stage technology companies in Brazil and Latin America. The firm has a portfolio of successful companies, including Loggi, Creditoo, and Liv Up. Canary has been an active LAVCA member since 2018 and has participated in several of the association’s events and programs.
Warburg Pincus is a global private equity firm that has been investing in Latin America since 1996. The firm has a portfolio of successful companies, including Petz, Grupo Biotoscana, and Aliansce Sonae. Warburg Pincus has been an active LAVCA member since 2005 and has been instrumental in promoting the growth of the private equity industry in the region.
Atlantico is a Brazilian private equity firm that invests in mid-market companies in Brazil. The firm has a portfolio of successful companies, including Grupo SBF, Grupo Pardini, and Grupo GPS. Atlantico has been an active LAVCA member since 2011 and has participated in many of the association’s events and programs.
Ignia Partners is a Mexican venture capital firm that invests in early-stage companies in Mexico. The firm has a portfolio of successful companies, including Kueski, Creze, and Conekta. Ignia Partners has been an active LAVCA member since 2010 and has played a key role in promoting the growth of the venture capital industry in Mexico.
Startups and Founders
The Association for Private Capital Investment in Latin America (LAVCA) has been instrumental in promoting the growth of startups and supporting founders in the region. According to LAVCA’s 2022 Latin American Startup Directory, venture investment in Latin America grew dramatically since 2016 to USD4.1b in 2020 and USD6.4b for 1H 2021 alone. The directory lists over 1,000 venture-backed startups across varied geographies, sectors, and stages of investment.
LAVCA conducted a Startup Founders Survey in 2023, capturing how 160+ venture-backed founders are responding to a radically different macroeconomic context in the Latin American tech ecosystem. The survey found that a record USD16b in VC investment was deployed in 2021, according to LAVCA Data. The survey also found that founders are increasingly focused on profitability, with 60% of respondents indicating that they expect to be profitable within the next two years.
Women-led startups are also gaining traction in the region, with LAVCA’s 2022 Latin American Startup Directory highlighting several successful examples. For instance, Kavak, a Mexican startup that operates a used-car marketplace, raised USD1.15b in a funding round in 2021, becoming one of the most valuable startups in Latin America. Bitso, a Mexican cryptocurrency exchange, raised USD250m in a Series C funding round in 2021. Mercado Libre, the Argentine e-commerce giant, also continues to thrive, with a market capitalization of over USD100b.
Edtech is another sector that is seeing significant growth in Latin America, with LAVCA’s 2021 Latin American Startup Directory listing several successful startups in the space. For example, Descomplica, a Brazilian edtech startup that offers online courses, raised USD84m in a funding round in 2021. Hotmart, a Brazilian startup that provides a platform for selling digital products, raised USD130m in a funding round in the same year.
In summary, LAVCA is playing a key role in promoting the growth of startups and supporting founders in Latin America. The region has seen significant growth in venture investment, with startups across varied geographies, sectors, and stages of investment. Women-led startups, edtech startups, and successful examples such as Kavak, Bitso, and Mercado Libre are just a few examples of the thriving startup ecosystem in Latin America.
Investment Data and Analysis
The Association for Private Capital Investment in Latin America (LAVCA) conducts an annual survey of over 500 fund management firms active in Latin America and the Caribbean to gather industry data and analysis. The 2023 LAVCA Industry Data & Analysis report revealed that private capital fund managers deployed USD28.2 billion across 1,352 deals in Latin America in 2022. This surge in investment was driven by a surge in investment in infrastructure assets. Investors continue to support Latin America’s demand for infrastructure development, especially around modernizing and expanding transportation, energy, and telecommunications assets.
Digitalization was the dominant theme across Latin America’s private capital landscape in 2021, with technology companies driving interest across asset classes and pushing private capital investment to a new record of USD29.4 billion, according to the 2022 LAVCA Industry Data and Analysis report. The report revealed that venture funding in Latin America reached USD9.3 billion in 2021, with the majority of investment activity going towards Series B rounds.
LAVCA’s reports also provide insight into fundraising and liquidity in the Latin American private capital industry. The 2019 LAVCA Industry Data and Analysis report showed that private equity (PE) and venture capital (VC) funds targeting Latin America raised US$6.7 billion through 52 partial or final closings. The report also revealed that the Latin American PE industry has been successful in generating liquidity, with 2018 being a record year for exits.
Overall, LAVCA’s industry data and analysis reports provide valuable insights into the Latin American private capital industry. These reports are a useful resource for investors, fund managers, and other industry professionals looking to stay up-to-date with investment activity and trends in the region.
Influence of Global Investors
The Association for Private Capital Investment in Latin America (LAVCA) has reported a significant increase in venture capital investments in Latin America over the past few years. This growth is due to the influence of global investors, who have recognized the potential of the region’s emerging markets.
According to a report by FT, global investors, particularly those from China and Asia, have been investing heavily in Latin America. In 2021, Chinese investors alone invested over $5 billion in the region, an increase of 60% from the previous year. This influx of capital has helped to fuel the growth of startups and small businesses, which are critical to the region’s economic development.
Global investors have also been attracted to Latin America’s large and growing consumer market. With a population of over 650 million people, the region presents a significant opportunity for companies looking to expand their customer base. Additionally, Latin America’s proximity to the United States and its membership in the North American Free Trade Agreement (NAFTA) make it an attractive location for companies looking to establish a foothold in the Western Hemisphere.
ERP (Enterprise Resource Planning) systems have also played a significant role in attracting global investors to Latin America. These systems have helped to streamline business operations and improve efficiency, making it easier for companies to do business in the region. As a result, many companies have been able to expand their operations and increase their profits.
In conclusion, the influence of global investors has been a significant factor in the growth of venture capital investments in Latin America. With the continued support of these investors, the region’s emerging markets are poised for continued growth and development.
Response to Covid-19
The Association for Private Capital Investment in Latin America (LAVCA) has been closely monitoring the impact of Covid-19 on the private capital industry in Latin America. The organization has been providing relevant resources and updates to its members to help them navigate the challenges presented by the pandemic.
LAVCA recognizes that the Covid-19 pandemic has created an unprecedented situation that has affected all aspects of the private capital industry, including portfolio companies, investor relations, and pipeline building. The organization is committed to supporting its members during these extraordinary times.
In response to the pandemic, LAVCA has been providing its members with regular updates on the latest developments in the private capital industry in Latin America. The organization has also been hosting webinars and other virtual events to help its members stay informed and connected.
LAVCA has also been working closely with policymakers and other stakeholders to advocate for policies that support the private capital industry in Latin America during the pandemic. The organization has been calling for measures to help portfolio companies weather the storm, including access to financing and other forms of support.
Overall, LAVCA is confident that the private capital industry in Latin America will emerge from the pandemic stronger and more resilient than ever. The organization is committed to providing its members with the resources and support they need to navigate these challenging times and emerge on the other side stronger and more successful than ever before.
Notable Exits and Unicorns
The Association for Private Capital Investment in Latin America (LAVCA) has been tracking the growth of unicorns in Latin America. According to LAVCA’s Latin America Unicorn Leaderboard, there were 22 unicorns in the region as of 2022. These unicorns include companies from various sectors, such as fintech, e-commerce, and logistics.
In recent years, Latin America has witnessed some notable exits in the tech industry. For example, in 2021, Brazilian neobank Nubank went public on the NASDAQ, raising $2.7 billion in its initial public offering (IPO). Another notable exit was dLocal, a Uruguayan cross-border payments company that raised $617 million in its IPO on the NASDAQ. These exits demonstrate the growing interest of investors in Latin American tech companies.
LAVCA’s Industry Data and Analysis report for 2022 highlights the dominance of digitalization in Latin America’s private capital landscape. Technology companies are driving interest across asset classes and pushing private capital investment to new records. In 2021, private capital investment in Latin America reached a new high of $29.4 billion, with venture capital accounting for 54% of overall private capital investment.
The report also notes that Latin America saw record-setting listings in 2021 on Brazil’s B3, NYSE, and NASDAQ, including Nubank and dLocal. Other notable exits in recent years include StoneCo, a Brazilian payments company that went public on the NASDAQ in 2018, and MercadoLibre, a leading e-commerce platform in the region that went public on the NASDAQ in 2007.
Overall, the growth of unicorns and notable exits in Latin America’s tech industry highlights the region’s potential for investment and innovation. As digitalization continues to shape the private capital landscape in Latin America, investors and operators remain vigilant for new opportunities to support the growth of the region’s tech ecosystem.
Review of Tech Investment in Latin America
The Association for Private Capital Investment in Latin America (LAVCA) has released its 2021 Review of Tech Investment in Latin America, which provides insights into the state of venture investment in the region. The report shows that venture investment in Latin America topped USD 4 billion for a second consecutive year, with a record 488 disclosed deals in 2020. This is a clear indication of the growing interest in the region’s tech ecosystem.
The report highlights that seed and early-stage investments in a number of major markets, such as Brazil, Mexico, and Colombia, reached record levels in 2020. The strong dealmaking activity spilled into Q1 2021, which indicates a positive outlook for the rest of the year. Collaborative investing between local and global investors has also been on the rise, with many global investors partnering with local firms to invest in the region.
The report also provides insights into the major markets and sectors, top deals by amount, most active investors and new players, co-investments, and more. Brazil continues to be the largest market for tech investment in the region, accounting for 53% of total venture capital investment in 2020. Mexico and Colombia are also emerging as key markets, with both countries experiencing record levels of investment in 2020.
The fintech sector continues to be the most attractive sector for investment, accounting for 25% of total investment in the region in 2020. Other sectors that saw significant investment in 2020 include e-commerce, edtech, and healthtech. The report also highlights the growing interest in sustainability-focused startups, with a number of impact-focused funds launching in the region.
In conclusion, the 2021 Review of Tech Investment in Latin America highlights the growing interest in the region’s tech ecosystem, with record levels of investment in 2020. The report provides valuable insights into the major markets and sectors, top deals, and investor activity, which can be useful for investors looking to enter the region.
Role of Fund Managers
Fund managers play a crucial role in the private capital investment industry in Latin America. They are responsible for managing the investments made by private equity and venture capital firms, institutional investors, and other private investment groups. Fund managers work closely with investors to identify investment opportunities, conduct due diligence, negotiate deals, and manage the portfolio.
One of the key responsibilities of fund managers is to identify promising companies and investment opportunities. They use their knowledge of the market and their network of contacts to find companies that have the potential for growth and profitability. Once they have identified a company, they conduct thorough due diligence to assess the company’s financial health, management team, and growth prospects.
Fund managers also play an important role in negotiating deals. They work closely with the company’s management team to structure the deal in a way that benefits both the company and the investors. They negotiate the terms of the investment, such as the amount of equity or debt financing, the valuation of the company, and the terms of the exit strategy.
Once the investment has been made, fund managers are responsible for managing the portfolio. They work closely with the company’s management team to monitor the company’s performance and ensure that it is meeting its growth targets. They also provide strategic advice and support to help the company achieve its goals.
Overall, fund managers play a critical role in the success of the private capital investment industry in Latin America. They are responsible for identifying promising investment opportunities, negotiating deals, and managing the portfolio to ensure that investors achieve strong returns.
Impact of Social Media and Ads
The Association for Private Capital Investment in Latin America (LAVCA) recognizes the impact of social media and ads on the private capital investment landscape in Latin America. Social media platforms, such as LinkedIn, Twitter, and Facebook, have become essential tools for private capital investors to connect with potential investees, share insights, and stay up-to-date with industry trends.
Social media also enables private capital investors to reach a wider audience and promote their investment opportunities. By leveraging social media platforms, investors can create targeted ads that reach specific demographics, such as entrepreneurs or business owners, in Latin America.
Furthermore, social media and ads can also be used to promote the positive impact of private capital investment in Latin America. Private capital investors can use social media to share success stories of their investees, highlighting the positive impact their investments have had on local communities and economies.
However, it is important to note that social media and ads can also have negative impacts on the private capital investment landscape. Misinformation and false claims can spread quickly on social media, potentially damaging the reputation of private capital investors and their investees.
In conclusion, while social media and ads have the potential to positively impact the private capital investment landscape in Latin America, it is important for investors to use these tools responsibly and ethically. By doing so, private capital investors can continue to promote positive change and investment opportunities in the region.
Frequently Asked Questions
What is the Lavca Private Capital Update?
The Lavca Private Capital Update is a bi-weekly email that features industry news, research, events, and updates on investors from private equity, venture capital, real estate, infrastructure, and family offices in Latin America. This newsletter is sent to Lavca members and provides valuable insights into the private capital investment landscape in Latin America.
What is the Global Private Capital Association?
The Global Private Capital Association (GPCA) is an organization that represents the global private capital industry. GPCA aims to promote the growth of private capital investment worldwide and provides a platform for private capital investors to connect, share knowledge, and collaborate. The organization also conducts research and provides data on private capital investment trends and activity.
What is Impact Investing in Latin America?
Impact investing is a type of investment that aims to generate positive social and environmental impact, in addition to financial returns. In Latin America, impact investing has gained significant traction in recent years, with investors seeking to address social and environmental challenges in the region. Impact investing in Latin America has focused on areas such as financial inclusion, education, healthcare, and renewable energy.
What is the most active VC fund in Latam?
The most active VC fund in Latam is a dynamic metric that changes over time. However, some of the most active VC funds in Latin America include Kaszek Ventures, monashees, and Valor Capital Group. These funds have been involved in several high-profile deals in the region and have helped to fuel the growth of the Latin American startup ecosystem.
What is private investment capital?
Private investment capital refers to funds that are invested in private companies or assets, rather than publicly traded companies. Private investment capital can come from a variety of sources, including high net worth individuals, family offices, pension funds, and endowments. Private investment capital has become an increasingly important source of funding for companies in Latin America, particularly in the technology and startup sectors.
Who are the investors in Latin America?
Investors in Latin America come from a variety of backgrounds, including high net worth individuals, family offices, venture capital firms, private equity firms, and impact investors. Some of the most active investors in the region include Kaszek Ventures, monashees, Valor Capital Group, and SoftBank. These investors have played a key role in the growth of the Latin American startup ecosystem and have helped to attract significant capital to the region.
