Technolatinas: Which are the most valuated tech enterprises in Latam?
The Surfing Tsunamis and NXTP Labs teams have joined forces to launch the first study that identifies technology companies in Latin America.
Developed with the support of the Multilateral Investment Fund (MIF-IDB), this work seeks to measure the impact these young companies have on the regional economy, as well as the global reach of their innovations.
Despite the outburst and growth of technology-based private companies in the region, most people are not aware of their strategic relevance, diversity, commercial practices and evolution. With this report, “we are looking forward to close the gap that created by unawareness and demonstrate that investors, corporations, academy, media and government must pay more attention to this sector and the opportunities that it represents” states Marta Cruz, NXTP Labs’ founder and co-author of the document.
Technolatinas initiative was aims to measure the impact that these young enterprises have in the regional economy and the global reach of their innovations.
“It is shown in the report that our region is able to innovate, create value and compete in the emergent tech spaces. But this work has only scratched the surface. Without a doubt, it’s time to take the game to the next level and make of the entrepreneurial innovation the main engine of a growing creative economy” assures Ignacio Peña, from Surfing Tsunamis and team leader of Technolatinas.
The region in numbers
For this report, an initial universe of 5k companies were identified, to then focus on a comparative analysis of the ones with a valuation over USD 25 M.
Based on available public sources and the collective perspective of more than 20 experts in different countries of the region, the result is a list of 123 enterprises from 8 countries in the region that, together, represent a market of at least USD 37.7 MM (billions).
In the report, 9 Unicorns (enterprises valued above 1 billion dollars) were identified, which represent 61% of the value of regional ecosystem. Latin American unicorns are located in Brazil (2), Argentina (4), México (2) and Chile (1).
Brazil is on top of Technolatinas Radar with 48%, followed by Argentina in a second place (18%), México in third place (14%), Chile in fourth place (8%) and Colombia in fifth place (7%).
The enterprises were included in the list taking into account the country where they are based, or if their founders were born in the region. (see infographic)
“We have concluded that most Technolatinas are young (69% are less than 10 years old), and many of them created by young entrepreneurs: this helps us make the projection that the best is yet to come, as long as we know that it’s the right time to create the conditions the entrepreneurs need”, states Ariel Arrieta, NXTP Labs’ co-founder and co-author of the report.
Regarding the information that Technolatinas Radar offers, Susana García Robles, Leader and Advisor in Innovation and Strategy in FOMIN/BID stated that “it’s a great tool for those who try to understand what’s happening with high impact enterprises in Latin America. The region, in spite of its challenges, is a relevant seedbed of innovation and represents a real opportunity for investors”.