The Development of Venture Capital in Latin America: A Comparative Perspective

32 Pages Posted: 4 Nov 2018

See all articles by Ernesto Stein

Ernesto Stein

Inter-American Development Bank (IDB)

Rodrigo Andres Wagner

UAI Business School ; Growth Lab - Harvard University (Center for Int. Development)

Date Written: October 17, 2018

Abstract

Venture Capital (VC) helps financing high-growth ventures in the business ecosystem. The development of Latin American VC lags behind developed economies, but also behind China and India. Nonetheless, in the recent boom regional VC grew 30% yearly (2005-2011). VC investments in Latin America are less hi-tech, larger and more likely to be funded from abroad than in benchmark regions. Deals are made by investors with less experience and in fewer rounds than comparables. VC growth was highly dependent on the macroeconomic business cycle. Results show symptoms of an early stage of development with relatively fewer high-tech ideas than money.

Keywords: Venture Capital, Private Equity, Latin America, Cross-border private equity

JEL Classification: G24, L26

Suggested Citation

Stein, Ernesto Hugo and Wagner, Rodrigo Andres, The Development of Venture Capital in Latin America: A Comparative Perspective (October 17, 2018). Available at SSRN: https://ssrn.com/abstract=3268085 or http://dx.doi.org/10.2139/ssrn.3268085

Ernesto Hugo Stein

Inter-American Development Bank (IDB) ( email )

1300 New York Avenue, NW
Research Department
Washington, DC 20577
United States

Rodrigo Andres Wagner (Contact Author)

UAI Business School

Diagonal Las Torres 2700
Penalolen
Santiago
Chile

HOME PAGE: http://https://sites.google.com/site/rodrigoawagner

Growth Lab - Harvard University (Center for Int. Development) ( email )

79 John F. Kennedy Street
Cambridge, MA MA 02138
United States

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