The surprising number of unicorns in Latin America: Brazil alone has 16 companies worth more than USD $1 billion and Colombia has 2

Unicorns in Latin America never cease to amaze. These are emerging companies, which have reached a valuation of more than USD $1 billion without having gone public. They are demonstrating the region’s potential for innovation and economic growth.

Latin America is experiencing steady growth in the startup ecosystem, and countries in the region are demonstrating their potential in the creation of innovative startups.

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The Global Startup Ecosystem Index report, prepared by StartupBlink, considers different variables to rank startup ecosystems. This algorithm uses three categories of variables: Quantity, Quality and Business.

Below is a list of the places with the highest number of unicorns in Latin America.

Brazil is the country with the most unicorns in Latin America

According to the report, Brazil is the leading country in the region in terms of number of unicorns, startups valued at more than USD $1 billion, with a total of 16 of them standing out in the international market.

Among the most prominent Brazilian unicorns are QuintoAndar and C6 Bank, both with valuations in excess of USD $5 billion. These startups have been able to achieve high valuations thanks to their focus on innovation and disruptive solutions in the real estate and financial services markets, respectively.

In second place is Mexico, which has 6 unicorns in its territory. The star of the Mexican ecosystem is Kavak, a platform for buying and selling used cars that has achieved an impressive valuation of USD $8.7 billion.

This company has revolutionized the automotive industry in the region and has been backed by national and international investment thanks to its exponential growth.

Third place goes to Colombia, which has also shown significant growth in the number of unicorns in its territory. Two of the most valuable startups in Latin America come from our country: Rappi and Habi.

Rappi is a home delivery platform that has achieved a valuation of USD $5.25 billion, making it the second most valuable unicorn in the region. On the other hand, Habi, a platform for buying and selling properties, has also reached a valuation of USD $1 billion.

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Argentina and Chile: fourth and fifth place in ranking of countries with more unicorns in Latin America

Argentina and Chile have two unicorns each. In Argentina there is Uala, a fintech company that offers digital financial services and is valued at USD $2.45 billion, and Nuvemshop, an e-commerce platform valued at USD $1 billion.

Meanwhile, in Chile there is Notco, a technology-based food startup, and Betterfly, a personal training and development platform. Both companies have managed to be valued at over USD $1 billion.

Why are there so many unicorns in Latin America?

This boom in the creation of unicorns in Latin America is the result of several key factors. On the one hand, access to investment has improved significantly in the region, with growing interest from local and foreign investors in supporting new companies with growth potential.

On the other hand, the governments of many Latin American countries have implemented policies and programs to encourage entrepreneurship and innovation, which has provided a more conducive environment for the development of startups.

However, not everything is rosy in the unicorn landscape in Latin America. Venture capital investment has weakened in recent quarters, due to macroeconomic concerns and global uncertainty, which has led investors to be more cautious, according to the Colombia Tech Report.

In addition, competition in the Latin American market is increasingly intense, which means that startups must demonstrate their ability to differentiate themselves and offer unique solutions to succeed.

Those companies that manage to stand out and solve real problems in the region are the most likely to become unicorns and attract significant levels of investment.

In conclusion, Latin America has demonstrated its potential in the startup ecosystem, with Brazil leading the way with an impressive 16 unicorns. Mexico, Colombia, Argentina and Chile have also excelled in the creation of startups valued at over USD $1 billion.

Despite the challenges, the region’s future as a hub of innovation and entrepreneurship looks promising, and it is to be expected that more unicorns will continue to emerge in the coming years, driving the region’s economic and technological development, as well as attracting investment.

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