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For entrepreneurship, one of the greatest successes is to receive the support of a prestigious accelerator Who has taken it in Latin America?
A business accelerator is an organization dedicated to offering assistance and investment to startups so that they can achieve stability and self-sufficiency. In highly competitive markets with high barriers to entry such as technology, the support of an accelerator can make the difference for the survival of a new company.
In Latin America, accelerators like Y Combinator, 500 Startups, NXTP Labs and ACE are always looking for promising companies with which to collaborate, and find them in lots, making the competition for the accelerators' attention intense, and that Finally, only a few companies can achieve this support.
Although regional accelerators such as NXTP Labs and ACE are very popular with entrepreneurs, to gain access to large investors worldwide, nothing compares to international accelerators, such as Y Combinator and 500 Startups.
According to data from the Association for Private Equity Investments in Latin America (LAVCA), Y Combinator has made twelve investments in the region between 2013 and 2017, and 500 Startups have made fourteen in the same period.
During the past year, these accelerators continued making theirs in the region, shaking the startup market. Seven new unicorns (companies that reach a market value of over 1,000 million dollars) were born in Latin America during 2018: Rappi (Colombia), 99, Nubank, PagSeguro, ArcoEducaçao, Ascenty and Stone Pagamentos (all from Brazil).
Brazil at the head
Without a doubt, the epicenter of investment for startups in Latin America is Brazil, where 6 of the 7 new unicorns in the region are located.
According to LAVCA, Brazilian companies received around $ 1.4 billion in private investment for startups between 2017 and 2018, which leads Brazil to become the ultimate destination for venture capital in Latin America.
Colombia and Mexico follow them. The first, catapulted by firms such as Rappi, managed to attract $ 188 million in the same period and the second, which has startups such as Cornershop, became a destination of 154 million dollars.
In fourth place is Chile, which attracted $ 35 million to its ventures as a risky investment.
A record year
Despite the disparity, 2018 was an exceptional year for investment in Latin American startups, particularly technology, which found millions of foreign capital that seeks to capitalize on a market increasingly suitable for digital innovation.
The figures of LAVCA reveal that during the first quarter of 2018 venture capital for startups reached the amount of 780 million dollars, a considerable increase compared to the $ 476 million that was invested during the same period of 2017.
Towards the end of last year, there was also the most significant investment for a single startup in the history of the region when the Brazilian company iFood, which participates in the home-delivery market, raised 500 million dollars at one time, from Innova Capital, Naspers, and Movile.
Besides, there were some purchases of startups by high-profile companies, which, although they do not qualify as risky investments, are still a sign of an increasingly dynamic investment landscape. The Chinese company Didi Chuxing acquired the Brazilian 99, "the Uber of Brazil" for about 1,000 million dollars, according to TechCrunch. Walmart purchased the Mexican Cornershop for $ 225 million.
LatinAmerican Post | Pedro Bernal
Translated from "Estos son los países latinoamericanos más atractivos para las aceleradoras"