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Copec Wind Ventures Fourth Annual Growth Markets Survey of VCs Finds LatAm as Top Growth Market

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Copec Wind Ventures, the strategic venture capital arm of Copec, an energy company in Latin America, announced the results of its fourth annual survey of the venture capital community’s outlook on global growth markets outside of North America and Europe.

In the Fall of 2023, Wind Ventures surveyed 50 venture capitalists from a diverse cross-section of professionals, including venture capitalists and corporate venture capitalists. While the majority (53%) of those surveyed were early-stage investors, 32% were seed-stage investors, and 15% were growth investors. 

According to this year’s survey, VCs’ view of which markets are best for startup expansion outside of North America and Western Europe has evolved. In 2023, Latin America came out as the best growth market, with 37% of VCs choosing the region as the most compelling, while only 13% believe that China is the most compelling.  This marks a shift from the 2020 survey that indicated China was the best with 37% and LatAm with only 8%.  

VC sentiment is also shying away from Southeast Asia as an attractive startup growth market with interest dropping 51% from 2020 to 2023. In addition, 51% of VCs surveyed indicating fintech will remain the hottest investment area in LatAm, while climate tech and energy came second and third 17% and 15%, respectively, highlighting the need of getting new energy and climate solutions into emerging markets where they are urgently needed.

The primary perceived challenge for startup expansion into Latin America is perceived by VCs to be political (89%). Since 2020, however, VC perception around economic or cultural risk to startup growth in Latin America has consistently improved year over year with both improving approximately 9% since 2020.

Led by Brian Walsh, head, Wind Ventures is the corporate venture capital (CVC) arm of Copec, one of the leading energy, mobility, and retail companies in Central and South America. The arm leverages Copec’s resources to accelerate growth, primarily within Latin America, for startups and scaleups across the world within the new mobility, energy, and retail sectors. 

VCWire

27/02/2024