Atlantico Latin America Digital Transformation Report 2022 - Launch Presentation

Описание: The 2022 report was launched live from the 2022 LatAm Tech Summit in São Paulo, Brazil on September 20, 2022. Full report is available at https://www.atlantico.vc/latin-americ...

A few highlights of this year:
1/ LatAm venture funding dropped by half from last year’s peak but is still above historical levels. One of many examples why the theme for this year was “cautious optimism”

2/ Foreign investors appear to be taking their feet off the (funding) gas pedal but are far from abandoning the region (as in times past). Local funds are stepping up to make up the difference.

3/ The year following recent market busts (dot com, GFC) often shows a steep drop in early stage financings. However, the companies that raise in these tough markets are much more likely to persevere and eventually go public

4/ So how to survive and reach the end of the rainbow? LatAm Founders are cutting costs to extend runway – 1 out of 3 cut headcount with 80% cutting less than 10% of staff. Is it enough? We’d urge more prudence. Caution in the face of uncertainty.

5/ While the US is reverting to pre-pandemic trend lines for most digital activity that boomed (see Shopify, Instacart, Peloton, et al), Latin America’s pandemic-induced acceleration appears to have been much “stickier,” leaping 2-3 years ahead of historic trends

6/ With “sticky digitalization” fueling mid-term growth, the opportunity in the long-term horizon remains bright (and big!) If LatAm’s levels of digitalization catch up to India's, China’s or the US’, we expect value creation to be measured in the trillions over the next decade

7/ This year we chose 3 topics to dive into. The first was web3, which we think can find fertile ground in Latin America to prove out multiple use cases at scale: Store of value (crypto vs hyper-inflation), means of exchange (DeFi helping remittances and more), and creative monetization (via NFTs)

8/ SMB Digitalization was the second topic. Vertical software and b2b marketplaces were just some of the hot themes of the past year addressing the gap between large SMB representation among LatAm businesses and their comparatively small productivity.

9/ Finally - Fintech always leads the way in LatAm (receiving over 40% of funding), and the region has become a global innovator. Perhaps the most amazing story of the year was the scale-up of Pix, Brazil’s instant payments network at a velocity never seen before around the world

10/ Underpinning the long-term prospect for LatAm tech is the human capital advantage tech companies and startups continue to have. Despite a rough market, tech continues to be the #1 choice of where to work for students at top universities. Follow the talent to see the future!