As the global tech industry continues to grow and evolve, Latin America has emerged as a major player in the scene, with a growing number of successful startups achieving unicorn status. Even with the global economic crisis, Latin America’s private sector and entrepreneurs have shown an uncanny ability to rise above it all and succeed. According to World Finance, by 2021, venture capital investment in Latin American tech had been growing steadily and doubling annually since 2016, and in 2021 alone, $14.8 billion was invested in the region.
In this blog, we will explore the most successful and innovative startups from across the region, illuminating their unique stories, the challenges they’ve overcome, and their impact on the tech industry. From Brazil to Mexico and beyond, we will showcase the most exciting and transformative Latin American tech unicorns, inspiring those looking to follow in their footsteps. So come along on this exciting journey as we delve into the fascinating world of Latin American tech unicorns!
Why technology investors and recruiters are targeting Latin America?
Latin America is a treasure trove for shrewd tech investors and recruiters seeking exceptional talent at reasonable rates. The region is home to numerous fast-expanding tech companies and a highly-skilled, youthful workforce.
Sources: LatamList and Hireline
Furthermore, countries such as Mexico, Colombia, and Chile have implemented policies that foster entrepreneurship, streamlining bureaucratic procedures and creating favorable conditions for startups to thrive. Alongside this, Latin America boasts an ever-increasing pool of IT professionals.
Also, the region has a large pool of highly skilled and educated IT professionals who are proficient in various programming languages and technologies. Latin America is producing big amounts of young engineering talent day by day, making it full of attractive candidates to choose from when companies are looking to set up world-class development tech talent networks or to hire individual remote engineering talent.
Additionally, time zone and cultural similarities with the United States make it easier to collaborate and communicate with Latin American teams. Plus, Latin American countries have a favorable business climate, with government support for entrepreneurship and innovation. Finally, labor and operational costs are generally lower in Latin America than in the United States, allowing companies to save money without compromising on quality.
Top Startup Destinations
In recent years, Latin America has emerged as a thriving hub for startups and entrepreneurship. With a growing talent pool, favorable business climate, and increasing government support, the region is home to numerous emerging companies that are disrupting industries and making a significant impact.
Here are some of the top startup destinations in Latin America to look at:
São Paulo, Brazil: With a population of over 12 million, São Paulo is the largest city in Brazil and a hub for innovation and entrepreneurship. The city is home to numerous co-working spaces, accelerators, and startup incubators, making it an ideal destination for entrepreneurs looking to connect with like-minded individuals and grow their businesses.
Mexico City, Mexico: As the capital city of Mexico, Mexico City is a bustling metropolis with a thriving startup scene. The city is home to several startup incubators and accelerators, as well as a growing community of tech enthusiasts and entrepreneurs. Several successful startups in Mexico City, such as Rappi, Kavak, and Clip, have achieved unicorn status with over $1 billion valuations.
Bogotá, Colombia: With a population of over 7 million, Bogotá is the capital city of Colombia and a hub for innovation and entrepreneurship. The city has a growing tech sector, with several notable startups, including Rappi and Liftit, emerging in recent years.
Santiago, Chile: Santiago is the capital city of Chile and home to a vibrant startup ecosystem and one of the top hubs for technology unicorns in Latin America. The city has several incubators, accelerators, and co-working spaces, and the government has implemented several policies to support entrepreneurship and innovation. Also, Santiago has become a preferred destination for startups looking to expand their operations in the region, with its strategic location providing easy access to major markets in South America.
Buenos Aires, Argentina: Buenos Aires is the capital city of Argentina and a hub for entrepreneurship and innovation. The city boasts a thriving startup ecosystem with a growing number of successful technology companies, including MercadoLibre and Globant, emerging in recent years. Buenos Aires offers a range of advantages to startups, including a talented pool of software developers, a supportive business environment, and access to funding.
Latin America is a hotbed of entrepreneurial activity, and these five cities represent some of the most promising startup destinations in the region. From São Paulo to Buenos Aires, the region is full of exciting opportunities for entrepreneurs looking to make their mark and disrupt industries. With a supportive ecosystem and a wealth of talented professionals, Latin America is an ideal destination for startups looking to thrive and grow.
5 Latin American Unicorns to keep an eye on
1. Betterfly
Valuation:$1.00B (February 2022)
Country: Chile
Started in: 2018
Industries: FinTech, Fitness, Health Care, InsurTech, Wellness
Number of employees:100-250
Funding Amount: $202.50M
Number of investors:17
The company, certified as a B Company for its impact on social and environmental well-being, is also the first Latin American “social unicorn.” The company was founded as “Burn To Give” in 2018, a platform that allowed it to convert into food rations the calories burned by its members doing sports, jogging, and cycling, through an app that measured the activity by GPS. In 2020 Burn To Give became Betterfly, a name alluding to the term “butterfly” as the company promotes a “positive butterfly effect that transforms your healthy habits into social impact and financial protection.”
Betterfly offers a digital platform of benefits to employees of companies of any size, including financial and wellness education, virtual fitness, telemedicine, and mental health, and rewards its members’ healthy habits with life insurance coverage that grows at no cost.
2. Kavak
Valuation:$8.70B (October 2020)
Country: Mexico
Started in:2016
Industries: Automotive, E-Commerce, E-Commerce Platforms, Online Portals
Number of employees:1,000-5,000
Funding Amount:$1,188.00M
Number of investors: 24
Kavak is a Mexican startup that is transforming the used car industry by providing a platform for buying and selling high-quality, reliable vehicles. The company has quickly become one of Latin America’s most successful unicorns, with a valuation of over $8 billion.
Kavak’s success can be attributed to its innovative platform and rigorous inspection process. The company’s platform allows buyers and sellers to connect in a seamless and efficient way, while Kavak’s inspection process ensures that all vehicles are of the highest quality and reliability.
3. Rappi
Valuation:$5.25B (August 2018)
Country: Colombia
Started in: 2015
Industries: Consumer Goods, E-Commerce, Food Delivery
Number of employees: 5,000-10,000
Funding Amount: $2,248.01M
Number of investors: 44
Rappi is a Colombian startup that is revolutionizing the on-demand delivery industry in Latin America. With a valuation of over $5 billion, Rappi has quickly become one of the region’s most successful unicorns.
Rappi’s success can be attributed to its innovative platform and commitment to customer satisfaction. The company’s platform allows users to order a wide range of products, from groceries and meals to pharmacy items and electronics, with fast and reliable delivery. In addition to its on-demand delivery services, Rappi has also expanded into other areas, such as financial services and travel. This has helped the company to diversify its revenue streams and expand its reach throughout Latin America.
4. Ualá
Valuation: $2.45B (August 2021)
Country: Argentina
Started in: 2017
Industries: Apps, Banking, Financial Services, FinTech, Personal Finance
Number of employees:1,000-5,000
Funding Amount: $608.00M
Number of investors: 22
Ualá is an Argentine startup specializing in financial services in Latin America, with a valuation of over $2 billion. Ualá’s comes from its innovative platform and commitment to financial inclusion. The company’s platform allows users to access a wide range of financial services, from online payments and savings accounts to investment opportunities and insurance products.
One of the key benefits of Ualá is the ease and convenience of its platform. By using the app, users can manage their finances easily and efficiently, without the need for a physical bank branch. The company also offers a range of services designed to help underserved populations, such as low-income individuals and those without traditional bank accounts, to access financial services. This has helped Ualá to become a leader in financial inclusion throughout Latin America.
In addition to its financial services, Ualá has also expanded into other areas, such as mobile phone services and e-commerce. This has helped the company to diversify its revenue streams and expand its reach throughout the region.
5. Bitso
Valuation: $2.20B (May 2021)
Country: Mexico
Started in: 2014
Industries: Bitcoin, Cryptocurrency, Financial Exchanges, FinTech
Number of employees: 250-500
Funding Amount: $314.66M
Number of investors: 20
Bitso is a Mexican cryptocurrency trading platform that facilitates the purchase and sale of bitcoin and other cryptocurrencies. This startup is leading the way in cryptocurrency exchange in Latin America. Its innovative platform, commitment to security and transparency, and diversification into other areas have helped the company to become one of the region’s most successful startups.
Bitso’s success can be attributed to its innovative platform and commitment to security and transparency. The company’s platform allows users to buy and sell a wide range of cryptocurrencies, including Bitcoin, Ethereum, and Litecoin, with fast and reliable transactions.
Latin America is home to a growing number of unicorns, which are driving innovation and growth throughout the region. These startups are leveraging cutting-edge technology, innovative business models, and a commitment to customer satisfaction to transform a wide range of industries, from financial services and transportation to e-commerce and on-demand delivery. With a favorable business climate, a growing talent pool, and increasing access to capital, the future looks bright for Latin American unicorns, and we can expect to see even more exciting developments in the years to come.
Finally, the success of Latin American unicorns can be directly related to the existence of highly-skilled software developers in the region. These developers are a critical component in the success of many of these startups, providing the technical expertise needed to build and maintain innovative platforms and products. With a growing number of highly-skilled software developers in Latin America, startups have access to the talent they need to compete on a global scale. This talent pool is a key factor in the region’s ability to attract investment and foster innovation. It is likely to continue to fuel the growth of Latin American unicorns in the years to come.
Therefore, looking towards Latin America is a great choice for American companies looking for highly-skilled software developers. Find your local partner to access the best talent in the region and set yourself up for rapid international expansion without most of the typical struggles associated with it.
The Internet of Things (IoT) is a revolutionary technology changing how businesses operate. IoT refers to the network of billions of physical devices – “things” around the globe connected to the internet and, therefore, constantly sharing data. Let’s think about it like a giant network of smart devices that can work together to make your life easier and more efficient. Thanks to fast technological development, now it’s possible to connect almost anything to the web, from a small watch to a plane, and turn it into a part of the IoT.
The IoT market is ever-increasing as more devices are connected than people, making IoT devices a fundamental part of our daily lives. Now, you must be wondering yourself, how big is the IoT market? Well, pretty big! For starters, sources such as Statista forecast that the number of Internet of Things (IoT) devices worldwide will almost triple from 9.7 billion in 2020 to more than 29 billion in 2030. Also, consumer IoT spending was expected to hit $108 billion, making it the second-largest industry segment: smart homes, personal wellness, and connected vehicle infotainment will see much of the spending. Plus, the overall enterprise Internet of Things (IoT) spending grew 12.1% in 2020 to $128.9 billion, indicating that IoT remains a high-growth market with opportunities across the entire technology stack.
But what does IoT means for business? Here are some of the ways IoT can benefit your business:
Improved Efficiency
IoT can improve the efficiency of your business by automating repetitive tasks and reducing the need for human intervention. For example, sensors can monitor server performance and detect potential issues before they become major problems, allowing the software business to address them proactively. Similarly, smart devices can monitor equipment and machinery, allowing for predictive maintenance and reducing downtime. This can help businesses avoid costly repairs and keep their operations running smoothly.
Increased Productivity
IoT can also increase the productivity of your business by providing real-time data and insights that can be used to make informed decisions. For example, it can monitor employee performance and productivity, providing managers with insights into how their teams perform and identifying improvement areas. This can help businesses optimize their processes and improve their bottom line.
Also, IoT tools increase internal and external office communication, resulting in better productivity. In fact, 58% of companies are seeing increased collaboration through IoT devices, according to a survey conducted by Harvard Business Review. Finally, IoT devices can be used to optimize workflows, reducing manual intervention and improving efficiency. For example, a warehouse can use IoT sensors to track inventory and automatically generate orders when stock levels fall below a certain threshold, reducing the need for manual inventory checks.
Improved Customer Experience
IoT can also help businesses improve their customer experience by providing real-time data and insights into customer behavior. This can be done simply by tracking user activity within a software application, allowing the business to identify areas where the user experience can be improved.
IoT devices can collect data on customer behavior, preferences, and habits. This data can be used to personalize the customer experience by providing tailored recommendations, alerts, or services. IoT devices can also be used to collect real-time feedback from customers, allowing businesses to address any issues or concerns quickly. Finally, keep always in mind that the most important thing to remember when integrating IoT technology into your product is to keep it simple and easy to use; therefore, try to find and hire only the best IT people for your IoT project.
Increased Security
IoT can also increase the security of your business by detecting potential security threats, such as unauthorized access or suspicious activity. IoT devices can also monitor physical and digital security systems in real-time, allowing businesses to respond quickly to security incidents.
Finally, IoT devices can control access to physical and digital assets, reducing the risk of unauthorized access and facilitating incident response by collecting and transmitting data on security incidents in real time. Overall, IoT can provide businesses with the tools to detect and respond to potential security threats in real time, reducing the risk of data breaches, theft, or other security incidents. By leveraging the power of IoT, businesses can improve their security posture and protect their assets from harm.
Reduced Costs
IoT can provide businesses with the necessary data and tools to optimize their operations, reduce waste, and cut costs. By leveraging the power of IoT, businesses can improve their bottom line and achieve greater profitability. Here are some specific examples of how IoT can reduce costs for a business:
Energy Management: IoT devices can monitor and control energy consumption, reducing energy waste and lowering utility bills. For example, a smart thermostat can adjust temperature settings based on occupancy, reducing heating and cooling costs.
Predictive Maintenance: IoT devices can predict when equipment will require maintenance; this allows businesses to schedule maintenance during periods of low usage and avoid unexpected downtime, reducing maintenance costs and increasing equipment lifespan.
Asset Management: IoT devices can track the location and status of assets, reducing the risk of loss or theft. This can lower replacement costs and insurance premiums.
Supply Chain Optimization: IoT devices can be used to optimize supply chain operations, reducing costs associated with inventory management and transportation. For example, a retailer can use IoT sensors to track inventory levels in real time and automatically reorder products when stock levels fall below a certain threshold, reducing the need for manual inventory checks.
IoT is no longer the future but the present for business. As outlined in this blog, its benefits for businesses include improved efficiency, increased productivity, and reduced costs. By connecting everyday devices to the internet and allowing them to communicate with each other, businesses can optimize their operations and gain insights that can help them make informed decisions. If you’re not already using IoT in your business, now is the time to explore its many benefits with a reliable partner.
True, businesses have faced huge challenges over the past few years, and apparently, this won’t change in 2023. The tragic combo of post-pandemic economies, Russia’s invasion of Ukraine, off-the-charts inflation and fuel price hikes, and supply chain disruptions foresee a complicated year for businesses of all sizes.
Although 2023 brings a unique set of challenges to companies, business leaders should not panic. Instead, let’s focus on how this new year brings plenty of opportunities to sort the obstacles and steer businesses into success. On that note, understanding what is coming and adapting to it has become one of the best business skills. Development team leaders need to identify the new technology trends this year is bringing; hence, their business becomes more adaptable to change and, therefore, more efficient despite the global setup and the unique challenges we might encounter.
With that in mind, here are five top tech trends for 2023:
Increased AI
In the past few years, Artificial Intelligence (AI) stopped being a sci-fi concept to become a reality of our everyday life. From chatbots to face recognition technology, AI has become a fundamental part of any modern business. According to IDC research, worldwide, spending by governments and businesses on AI technology will top $500 billion in 2023.
In our ever-increasing technological world, we can no longer separate AI from product development. Having AI and machine learning knowledge allows real-time analysis and better interaction between people and machines for smarter task executions. As the level of communication between devices and humans through intelligent technology, the convergence of both through AI helps applications and solutions make predictions based on identifying data patterns to ease the interaction.
In 2023, AI will be even more present. One of the main benefits of AI is that it reduces the probability of human error. In the upcoming years, AI and machine learning will automate routine tasks in almost every industry. Therefore, adopting AI into their business process is essential for any enterprise aiming to boost efficiency, reduce wasted material, and increase profits. More so, with the precision of AI forecasting capabilities, companies can make more informed decisions that will boost growth and give them a competitive advantage over the competition.
Sustainability
Society is more aware than ever of the fact that climate change and environmental disasters are one of the more considerable challenges we face as humankind. It is clear now that if we continue with our old production and consumption methods, there won’t be much planet Earth left in the near future.
Therefore, conscious consumers and investors nowadays prefer companies with good environmental and social credentials, prioritizing ecological impact and sustainability over raw profit. As consumers’ perspectives shift toward sustainable living, brands must guide their mindset.
In 2023, companies must ensure that their environmental, social, and governance (ESG) processes are moved to the center of their business strategy. It will be important for companies to adopt technology that helps them reduce as many ecological negative impacts as possible. For example, digital technology powered by AI and cloud computing will continue growing as they help businesses to achieve their objective efficiently and sustainably. Forecasts show that cloud spending will reach $600 billion in 2023.
Also, hybrid and remote working models will keep rising, encouraging companies to reduce their carbon footprint by lowering the number of big office spaces to maintain.
The Internet of Things
The Internet of Things, or IoT, describes the network of billions of physical devices – “things” around the world that are connected to the internet and sharing data. Thanks to rapid technological development, now it’s possible to connect almost anything to the internet, from a small lightbulb to an airplane, and turn it into a part of the IoT.
Over the past few years, IoT has become one of the most critical technologies of the century; today, more devices are already connected than people in the world. According to ZdNet, tech statistics predict that there will be 41.6 billion connected IoT devices by 2025, or “things.” Connecting all these different objects to the web adds a level of digital intelligence to devices that would otherwise be “dumb,” enabling them to communicate real-time data without the need for human beings. In other words, in this hyperconnected world where we can connect everyday objects to the internet, we can achieve seamless communication between people, processes, and things.
The IoT is making the world around us smarter and more responsive, merging the digital and physical universes and making them cooperate.
Immersive customer experience
After the unexpected COVID-19 lockdown, consumers are craving experience above anything else. In 2023, besides the price-quality relation, customers are focusing on how they experience selecting, purchasing, and enjoying goods and services.
From recommendation engines to help us choose what to buy to customer support portals, technology has played a crucial role in shaping streamlined processes and easing the buying journey for consumers throughout the years. But the game is changing, and the start of the new year has brought the keywords “immersion” and “interactivity” to everybody’s lips.
And we can’t talk about immersion without one of the hottest words of the moment. The metaverse is a concept that translates into an online, 3D universe that combines multiple virtual spaces focused on social connection. It basically allows users to work, meet, and socialize together in these 3D spaces.
For example, think of online shops where we can browse and “try on” virtual representations of clothes, jewelry, and accessories. This new “extended reality” has been predicted to be the next evolution of technology and represents a white canvas for companies to intervene and adapt their products. At the same time, this universe blurs the line between physical and digital life.
On that note, businesses should continue developing products and keep innovating, experimenting, and growing their audience while getting ready to take on this new universe.
Cybersecurity
Cybersecurity development is in a permanent state of evolution and expansion. However, since remote became the new normal, digital business and hybrid work models are changing how cybersecurity is understood.
As technology and software development expands, so does the complexity of risk and threats; therefore, cybersecurity will be at the forefront of digital transformation. As both hackers and security experts are in an endless battle to outsmart each other, it is crucial to rethink security and prepare for new threats.
According to some figures, within the next five years, there will be 64 billion IoT devices installed around the world. This means we will be more dependent on technology than ever before, from online banking to downloading private information. Some experts, such as Gartner, have reported that the cybersecurity mesh practices will lead the information security sector. On that note, safety and privacy will be at the forefront of anything we do online, and every new app developed will need to incorporate cybersecurity.
As we start 2023 and navigate the complex business scenario in front of us, it is crucial that CEOs and business leaders be aware of the emerging technology trends and be ready to identify which will shape the way business is done.
Now more than ever, it’s crucial for companies to stay on top of the latest tech trends that will help them develop better solutions for their clients so they don’t fall behind in the tech game.