Venture funding for Latin American startups reached $1.3 billion in the third quarter of 2026 across seed- and growth-stage deals, according to Crunchbase data. That total represents a 26% increase from the same quarter a year earlier but a 9% decline from the second quarter. The figures cover the three-month period ending Sept. 30.
Late-stage and growth deals accounted for $757 million of the quarterly total, up 74% from the $435 million raised at those stages in the third quarter of 2025. The late-stage figure was still down 21.3% from the $962 million recorded in the second quarter of 2026, a quarter Crunchbase noted was the strongest for that stage since the second quarter of 2022. Seed-stage funding rose sharply: angel and seed rounds brought in $266 million, or about 20.5% of the total, up 128% from $117 million in the second quarter and up 62% from $165 million a year earlier. Early-stage funding fell to $288 million, down 18.9% from $355 million the prior quarter and 34% from $437 million a year earlier.
Two of the quarter's largest rounds went to energy startups rather than companies in Brazil or Mexico, which have historically drawn the most regional venture capital, and outside fintech, typically the region's top funding sector. Chile's Black Giant, the project company for EnergyX's Black Giant lithium project, raised $225 million in July at a reported $900 million valuation. Colombia's Erco Energía, a clean energy company that builds and operates solar power systems for homes and businesses, raised a $129 million Series C in August at a reported $600 million valuation.
Among other large deals, Mexico's Kapital, an AI-powered financial services company, raised a $125 million Series C in September at a $1.6 billion valuation, with Tru Arrow Partners and Fasanara Capital co-leading. Brazilian fintech Kesh Bank brought in $106.9 million in an equity and debt seed round in August at a $626 million valuation. Also in August, Brazil's Decade, an AI-native wealth advisory company founded by former Nubank CTO Vitor Olivier and Hyperplane AI founder Felipe Meneses, raised $85 million in what Crunchbase data shows is the largest seed round ever for a Latin American startup, backed by Benchmark, Greenoaks, Diffusion, Norte Ventures and Atlantico.
Mexico's startups have raised $1.52 billion in the first three quarters of 2026, about 40.7% more than the $1.08 billion raised by Brazil's startups over the same period, an unusual reversal for a region where Brazil has historically been the largest recipient of venture funding. Igor Piquet, Endeavor Catalyst's vice president and head of Latin America, said Mexico drew more funding than Brazil in the first half of 2026, but much of it went to a few startups while Brazil recorded many deals. He said investors are concentrating on a few Mexican winners while Brazil retains breadth, and that Brazil also leads in realized exits.
Endeavor Catalyst managing partner Allen Taylor said international venture investors were more active in the region, particularly Brazil, during the first three quarters of 2026 than in 2024 and 2025 combined, through new investments and follow-on funding. He said US investors tend to rediscover Latin America every five or six years and that another such moment appears to be approaching. Piquet said liquidity is improving, with acquisitions and secondary transactions providing more opportunities than public listings, and pointed to roughly 60 private Latin American technology companies that have each raised at least $150 million as a potential IPO pipeline. Taylor said more exits could bring global investors back consistently, with potential New York Stock Exchange listings by companies such as Wellhub, CloudWalk or Creditas contributing to another rediscovery moment in 2027. Ana Cristina Gadala-Maria of QED Investors said international investors remain interested but are more selective, with longtime regional firms still engaged while many firms that entered during the 2020 - 2021 boom have shifted toward AI opportunities elsewhere and are focusing on existing portfolios.
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