Latin America’s venture capital landscape is experiencing a significant contraction, but some investors continue to stand out with their strategic focus and portfolio strength. According to a new news CB Insights According to the report, the region’s startup funding landscape has cooled significantly since its peak in 2021. Total funding fell from $20.1 billion in 2021 to just $4.8 billion last year. to agree volume has fallen by more than half since 2022.
In this challenging environment, the gap between senior managers and investors The rest of the field has expanded, rewarding those with high-quality portfolios and targeted strategies.
Ranking is proprietary to CB Insights dataWe analyze equity investments in private startups in Latin America from the first quarter of 2023 to the third quarter of 2025.
Key scoring criteria include trading volume, the presence of unicorns backed before reaching a $1 billion valuation during the period, and the exit rate of portfolio companies invested in since 2018.
Government institutions, accelerators and incubators were excluded.
Portfolio health was further evaluated using Mosaic scores (out of 1,000) for company potential and machine learning-based merger and acquisition probability predictions for the next two years.
Brazil emerged as the clear base for regional activities.
startups These companies demonstrate remarkable resilience, accounting for 60% of all deals involving the top 50 investors in the country.
While average trading activity among these investors is down 18% year-on-year through the third quarter of 2025, Brazil deals were down just 9%.
The domestic focus has been protective: Brazil’s leading venture capitalists manage 77% of their investments locally, shielding the ecosystem from broader cross-border capital withdrawals.
In contrast, younger markets chile experienced sharper contractions.
The country’s top-ranked firms—Magma Partners, Fen Ventures, SQM Lithium Ventures, and Kayyak Ventures (all only nine years old on average)—saw deal flow fall by 57% over the same time period.
Artificial intelligence has become a top bet for leading investors.
The top three firms (Bossa Nova Investimentos, Redpoint Eventures and DOMO.VC) have devoted a quarter of their deals to AI companies since 2023.
Within this, 35% sales and customer service applications are targeted. Prominent examples include Octagora. artificial intelligenceTuTo Digital, which develops an assisted customer service platform and artificial intelligence agents for sales automation.
Portfolio quality also distinguishes winners.
The Monashees lead the region with the highest average Mosaic score of 695. fintech Conglomerates like spend management platform Clara (score: 865) and international banking provider Nomad (score: 829).
TechEnergy Ventures ranks second with an average score of 669.
Breakout potential is another bright spot. FCJ Venture Builder is expected to see the highest number of liquidity events over the next two years, with its portfolio companies having average liquidity performance. Merger and Acquisition probability is 36%; It is well above the global indicator of 21.6%.
Two portfolio highlights: compatibility training firm AWTRA and recruitment platform Reachr each carry a 75% chance of near-term merger and acquisition activity.
Report highlights maturing Latin America VC An ecosystem where selectivity, geographic focus, and sector bets like AI and fintech pay off under tighter capital conditions.
The full ranking of the 50 investors is detailed on CB Insights report. These highlights show how strategic positioning enables top players to achieve success even as the broader market consolidates.
Like Latin AmericaAs ‘s startup ecosystem matures, investors who combine local expertise with forward-looking theses on emerging technologies appear best positioned for the next cycle.
