While most of this capital has been directed toward Brazil and Mexico, this surge is starting to have an effect on startups in the region's smaller markets.
Brazil's plan to overhaul its pension system has become a make-or-break issue for markets, which rally on signs of the bill's progress and sink on its setbacks.
Singapore state investor Temasek Holdings has invested in the $150 million early-stage venture capital fund raised by Monashees, the biggest VC firm in Brazil, focused on backing tech startups in Latin America.
Money has been pouring into Brazil's hedge fund market over the past couple of years, but concerns are rising over just how concentrated these flows are among a few key players and their potential market impact.
U.S. hedge funds reduced equity holdings tied to Brazil by about a net total of $800 million from the start of the year to end of March, according to data compiled by Bloomberg. The profit taking came after a 69 percent surge in Brazil’s benchmark stock index last year. The pullback from Brazil seemed well timed Thursday, as the Ibovespa gauge plunged 16 percent in dollar terms amid a rout in the country’s assets as a political crisis enveloped President Michel Temer and threatened to derail his push to shore up government finances. Oil producer Petroleo Brasileiro SA and lender Banco do...
<p>Brazil is experiencing a wave of growth in financial technology that will most likely eat into the market share of the country's huge and long untouchable banks, according to a Goldman Sachs report. Venture capital investments in fintech companies in Brazil have been increasing and private equity firms are also taking note.</p>