CVC in Latin America: A Strategic Tool with Tangible Impact

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During 2024, US$ 3.5 billion was invested in Venture Capital (VC) in Latin America (according to LAVCA, not including venture debt). Although this figure represents growth compared to 2023, it is still modest and comparable to the levels of 2019, prior to the boom registered between 2020 and 2022. Brazil and Mexico were the most important markets, accounting for approximately 70% of the total invested in the region.

In contrast, the raising of new funds has shown a strong slowdown. In 2024, VC funds only raised $500 million, compared to $2.2 billion in 2023 (according to LAVCA). This context of lower liquidity and scarce exits limits the flow of new resources, making it difficult for the ecosystem to grow. In this scenario, the role of the CVC becomes even more important.

Globally, it is estimated that CVCs participate in 28% of VC transactions (according to The State of Corporate Venture Capital 2024 Report). Although in Latin America this is still at an earlier stage, its participation is increasing: a recent report by Global Corporate Venturing and Wayra projects that they could represent up to 15% of VC transactions in the region.

CVCs are a key player in the ecosystem because, since they mostly invest from the balance sheet of their corporations, they are a source of long-term capital to fund startups. In addition, many of these investments result in a commercial agreement between the corporation and the startup, which generates tangible benefits for both parties. In fact, 70% of companies consider these agreements to be important or very important in their investment decisions, according to Wayra. While for the founder this generates the much desired revenue and, particularly in earlier-stage startups, the corporation can be an anchor customer that helps validate the potential market value of the idea.

At Credicorp we understand the value of this model, so at Krealo we invest and promote startups in the Andean region, which has allowed us to obtain concrete results. For example, tyba by Credicorp Capital, our wealthtech app that offers access to Credicorp Capital products digitally and securely, already manages more than $1 billion in assets (AUM). In the same way, thanks to a technological alliance between Pacico Seguros and Monokera -a startup in our portfolio-, it is now possible to offer insurance directly through Yape.

I invite more Peruvian corporations to explore the benefits of CVC: a way not only to accelerate innovation within their groups, but also to actively contribute to the development of the startup ecosystem in the country.

[[Cita
 texto="CVCs are a long-term source of capital that can fund startups and become an anchor customer that validates their value proposition."
 autor="Adolfo Vinatea"
 cargo="CEO of Krealo"
]]

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