TechTropical - LatAm Tech Scene at a Glance
#2 - Analysis of the explosive growth of billion-dollar tech investments in Latin America, highlights from Web Summit Rio 2025, and a recap of the key news and trends from the past week in the region.
Ladies and gentlemen, happy Monday and welcome to the TechTropical! Your weekly newsletter that dives into the latest happenings in the LatAm tech scene.
I’m Caio Carvalho, a tech enthusiast who works at Deloitte Brazil’s M&A IT Consulting Practice advising clients on navigate the future of tech in their strategic transactions - and is immersed in the world of technology - reading, learning and sharing insights here at TechTropical.
Before we dive into insights, links, or thoughts on tech across Latin America, I want to start this edition with a huge and heartfelt THANK YOU to our first 20 weekly readers. TechTropical started as an idea and a desire to explore the mote authentic, curious, and relevant side of technology in our region. Seeing 20 people have already joined this journey with me from the very beginning means a lot. This space is meant for us to learn, share, and grow — with a mix of substance and lightness.
If you ever want to share feedback, suggest topics, or just say hi, feel free to reply to this email. The door (or the network) is always open.
And if you have not subscribed yet, it’s easy, just click down there.
The Tropical Storm: The Billion-Dollar Momentum in Latin America
It wasn’t long ago that few would have bet on Latin America becoming home to world-class tech companies. Mercado Libre, Nubank, Rappi, QuintoAndar, Loggi, Unico, Bitso, the list goes further and on. Fast forward to today, and Latin America has transformed into a breeding ground for billion-dollar innovation.
The years 2021 and 2022 broke records. The first quarter of both, 2021 and 2022, accumulated almost the entire volume of VC investments of the years 2023 and 2024, driven by a significant shift in the global economic environment since 2021 - marked by rising interest rates and a downturn in equity markets - venture capital faced a disrupted liquidity cycle that reshaped funding dynamics worldwide (spoiler of Mike Packer speech at the Web Summit Rio 2025).
However, Venture Capital investment in Latin America during Q1 2025 is currently outpacing levels seen in 2023 and 2024. Investments in Q1 2025 increased 45% year-over-year, reaching USD 1.1 billion. While early-stage venture capital investment has remained relatively stable in recent quarters, late-stage funding is showing signs of growth.
Brazil and Mexico continue to lead in terms of startup volume, but unicorns have also emerged from Argentina, Colombia, Chile, and Uruguay, reflecting the increasingly broad distribution of startup activity across Latin America.
Fintech remains a key driver of valuations; however, other sectors - including SaaS and Energy - are steadily gaining relevance. Some valuations from funding rounds at the height of the 2021 venture capital cycle may not reflect current market realities, but many of these companies continue to play important roles in the LatAm’s tech landscape and could benefit from the recent signs of renewed VC interest in Latin America.
Following a volatile first quarter, the outlook for the startup landscape in the remainder of 2025 remains uncertain. The market instability has already delayed several high-profile IPOs, and M&As while ongoing recession concerns could further slow venture funding—particularly at the seed and early stages.
Additionally, the U.S. tariffs and a potential escalation in trade tensions may create headwinds not just for hardware startups, but for the broader tech and AI sectors, both of which depend heavily on access to chips and data infrastructure.
Despite continued enthusiasm around artificial intelligence - and in contrast with the Gartner’s Hype Cycle, well-capitalized AI leaders may now face pressure to demonstrate tangible growth in order to maintain investor confidence - especially as many backers navigate fluctuations in their own public market valuations.
In short: the road ahead may be anything but smooth.
Web Summit Rio 2025: Overview and some takeaways
For those unfamiliar, Web Summit Rio is the South American edition of one of the world’s largest technology and innovation events. Its goal is to connect startups, investors, industry leaders, and experts to discuss major trends, foster business opportunities, and help shape the future of technology in the region and beyond.
Overview: AI, Future of Work, and Technological Convergence
The 2025 edition of Web Summit Rio had Artificial Intelligence (AI) as one of its central themes, generating great interest and heated discussions. The excitement around AI was fueled by the success of ChatGPT and the emergence of new players in the market, such as China’s DeepSeek. One topic that sparked particular curiosity among participants was the future of AI agents, with several sessions dedicated to exploring their potential and applications. The discussions were not limited to AI’s potential alone, but also tackled crucial issues such as ethics, regulation, and the societal impact of the technology. In addition, the ways in which AI is being integrated into various industries—including finance, retail, and logistics—were explored, demonstrating its versatility and transformative potential across different sectors of the economy. The centrality of AI in the discussions reflects a global trend and the recognition of its transformative potential across all sectors. The interest in AI agents and the conversations around ethics and regulation indicate a mature and conscious approach to the development and implementation of AI. AI has ceased to be a futuristic concept and has become a present and impactful reality. Web Summit Rio served as a crucial forum to explore the many facets of this technology, from its practical applications to its ethical and social implications.
Another prominent theme at Web Summit Rio 2025 was the future of work and the increasing importance of global talent. Discussions addressed the rise of remote and hybrid work models, as well as the role of technologies in the modern workplace. Flexibility was highlighted as a crucial differentiator for companies when attracting and retaining talent in a competitive market. The event also explored the growing use of AI tools to optimize recruitment processes and HR automation, aiming to increase the efficiency and quality of talent acquisition. An important point in the discussions was the need for companies to develop effective strategies to retain and engage an increasingly global and distributed workforce. The emphasis on the future of work and the acquisition of global talent highlights the change in work dynamics and the growing importance of flexible models and the ability to access talent anywhere in the world. The integration of AI into HR processes is seen as a way to increase efficiency and find better candidates faster. The pandemic accelerated the adoption of remote work, and Web Summit Rio recognized this transformation as permanent. Discussions about global talent and HR automation reflect the need for companies to adapt to a constantly evolving labor market.
In addition to the themes of AI and the future of work, Web Summit Rio 2025 also explored the growing convergence between technology and culture. Sessions were held dedicated to innovation in storytelling, the creator economy, and the increasing influence of platforms like TikTok on global communication. The exploration of the convergence between technology and culture demonstrates the recognition that technology does not operate in a vacuum but is intrinsically linked to the ways we communicate, create, and consume content. The rise of the creator economy and the influence of platforms like TikTok are examples of this interconnection. Technology is shaping culture, and in turn, cultural trends are influencing technological development. Understanding this dynamic is crucial for companies seeking to innovate and connect with their audiences effectively.
Yes, we have Rio de Janeiro!
Yes, we have Rio de Janeiro! One of the most significant announcements at Web Summit Rio 2025 was the formalization of a new five-year agreement with the city of Rio de Janeiro, ensuring the event's presence in the city until 2030. Over this period, the event is expected to continue attracting hundreds of thousands of technology entrepreneurs, investors, trade delegations, global technology giants, and international media to the city, generating new business opportunities, building global partnerships, and fostering commercial agreements that will boost Rio's growing technology economy. The renewal of the contract with Rio de Janeiro until 2030 demonstrates a strong commitment from both parties to transform Rio into a leading technology hub in Latin America. The stability provided by this long-term agreement is crucial for the continued development of the local ecosystem. A long-term agreement allows for more effective strategic planning and encourages investments from both Web Summit and the city of Rio. This creates a more favorable environment for growth and innovation.
One of the highlights was the announcement of “Rio AI City”, an ambitious initiative that aims to turn the city into the largest data center hub in Latin America - and one of the ten largest in the world - within seven years. The plan involves attracting multi-billion-dollar investments in artificial intelligence (AI) to the Olympic Park, located in the West Zone of Rio. With an initial infrastructure investment of 1.8 gigawatts (GW) by 2027 - and a planned expansion to 3.0 GW by 2032 - the complex will operate exclusively on clean energy and use an "unlimited water" cooling system, ensuring zero-latency operations for supercomputers.
The project also includes a direct connection to Porto Maravilha, reinforcing the urban and technological integration of the region. Today, Porto Maravilha is already home to Porto Maravalley, an innovation hub.
Other announcements
Another announcement of great impact was Microsoft's commitment to invest R$ 14.7 billion in AI and cloud infrastructure in Brazil over the next three years. This investment represents the company's largest individual commitment in the country to date. In addition, Microsoft plans to expand its ConectAI program, aiming to train 5 million Brazilians in AI skills by 2028. Microsoft's massive investment in AI and cloud infrastructure in Brazil is a strong indicator of the country's potential as an AI innovation hub in Latin America. The focus on training local professionals aims to overcome the shortage of qualified talent and boost the adoption of AI by Brazilian companies. Microsoft's investment is not just financial; it also involves the development of human capital, which is essential for the sustainable growth of the technology sector. This could attract more investment and strengthen Brazil's position in the global AI landscape.
Bybit, one of the world's largest cryptocurrency exchanges, also made a significant announcement during Web Summit Rio 2025, revealing the launch of Bybit Pay in Brazil, in partnership with Transfero. This new blockchain-based payment solution offers an integrated crypto-to-fiat experience, simplifying payments and settlement for users in Latin America's largest economy. Furthermore, Bybit announced its strategic partnership with Tomorrowland Brasil, becoming the exclusive payment partner for the iconic music festival and integrating cryptocurrencies into the event. The partnership between Bybit, Transfero, and Tomorrowland Brasil demonstrates the growing integration of cryptocurrencies into everyday life, especially among the younger generation in Latin America. This innovative collaboration between financial technology and entertainment could drive the adoption of crypto as a means of payment. The choice of Tomorrowland Brasil as a strategic partner is significant, as it reaches a young and tech-savvy audience. This suggests that Bybit is focused on building a "crypto lifestyle brand" and facilitating the use of cryptocurrencies beyond investment and trading.
Last but not least, several startups took advantage of the Web Summit Rio platform to launch new products and platforms, including FoodRec, Rosh Agency, Boolfy, and Elephan.AI, covering sectors such as data analysis, advertising, and expense management. Additionally, First Serve Ventures announced a 1 million investment in promising Brazilian startups, signaling the growing interest of investors in the local market.
Let’s see what the next chapters bring...
Day 1 Highlights
Transformation in TV: The Arrival of TV 3.0
Technology is revolutionizing the way we consume content, and the TV 3.0 is an example of this. It combines traditional TV with interactive features from social media, offering personalized experiences such as listening to your favorite team's crowd during a football game or joining discussion groups during a soap opera. This new approach promises to make TV consumption more engaging and dynamic, bringing the viewer closer to the programming.
Artificial Intelligence: Autonomous Agents and Ethical Challenges
Artificial intelligence is evolving to a new stage with the introduction of autonomous agents, which are transforming industries like manufacturing and logistics. These agents make quick, efficient decisions, bringing more agility and precision to processes. However, this evolution also raises questions about privacy and data transparency, requiring clear and well-structured policies. AI thus becomes a strategic tool but also an ethical challenge for businesses.
Investment in Technology: Prioritizing Innovation with Purpose
In the financial market, investors are shifting their focus, moving away from merely replicating successful business models and now prioritizing projects with a purpose. Technologies such as artificial intelligence and cybersecurity are in high demand because they have the potential to create global impacts and deep transformations. In this new landscape, investors seek to support initiatives that not only generate profit but also bring innovative and sustainable solutions to real-world problems.
Music and Technology: The AI Revolution in the Music Industry
In the music industry, artificial intelligence is creating new possibilities, allowing the creation of artist avatars that connect with audiences around the world. While AI expands interaction possibilities, human emotion and creativity remain essential for music to stay genuine and authentic. Technology is altering the relationship between artists and their fans, but it doesn't replace the unique value of the human experience.
Brazilian Audiovisual: Global Expansion and Co-Productions
The Brazilian audiovisual industry has been gaining international prominence, with co-productions that authentically reflect Brazilian culture in an appealing way. These contents are reaching new audiences, expanding the boundaries of what is considered "Brazilian." The expansion of streaming platforms and international partnerships has helped Brazil gain even more space in the global market, offering a diverse range of perspectives on the country's culture and stories.
Football (or Soccer) and Global Connection with Fans
Football (or Soccer) clubs, like Flamengo, Corinthians, or Fluminense, are building stronger connections with their international fans through social media. The digital presence allows clubs to engage with their supporters outside the country, strengthening their global brand. This interaction goes beyond the stadium, showing the importance of engaging fans in different contexts and building a solid, global community.
The Future of Streaming: Hybrid Models and Personalization
Streaming platforms are evolving, adopting hybrid models that combine ads and subscriptions to reach a broader user base. Personalization, through the use of AI, is becoming increasingly essential to provide a unique and tailored experience for each audience. This transformation in business models aims to attract and retain subscribers, making streaming more accessible and efficient.
Sustainable Mobility: The Electric Car Revolution
The automotive industry is undergoing a full revolution with the shift to electric vehicles, a necessary response to global warming and the urgent need to decarbonize the transport sector. However, this transition requires innovation across the entire production chain, from manufacturing to battery recycling. Electric mobility not only helps reduce carbon emissions but also proposes a transformation in how we relate to transportation, creating a more sustainable and connected future.
Day 2 Highlights
AI: The Future of Technology with Responsibility
With the advent of AI agents, ethics become a fundamental pillar to ensure this technology is used safely and effectively. Companies must be prepared for this shift by investing in training and adopting a creative and agile approach to innovation.
The Power of Cities: Where the Future is Built
Human capital and entrepreneurial vision are the driving forces that turn a city into a transformative hub. Cities can be partners, not competitors, and technical education plays an essential role in social inclusion and economic growth.
Digital Transformation: The Key to Business Revolution
For digital transformation to succeed, companies need flawless execution, clear processes, and high-quality data. Agility and personalization, driven by artificial intelligence, are what make the difference in customer experience.
Agility becomes a critical factor in customer experience success. Consumers want to find what they need quickly and without obstacles, and it’s this ability to provide quick responses that differentiates companies in today’s competitive market.
Digital transformation is a continuous path of evolution. Companies must constantly reinvent themselves to keep up with market changes and simplify their processes.
To ensure a smooth and efficient experience, companies must focus on building a well-organized digital infrastructure. This structure serves as the foundation for providing a seamless and fast customer experience. Personalization is another critical element; by offering tailored experiences, businesses can strengthen their bond with customers and create more value. Lastly, innovation requires solid foundations. Companies must ensure their internal processes are robust, and integrating artificial intelligence can help streamline these processes, improving overall efficiency and accelerating the transformation journey.
Banks of the Future: Artificial Intelligence in Control of Financial Management
Traditional banking models are rapidly evolving as financial institutions embrace artificial intelligence (AI) to enhance customer experience and improve decision-making processes. AI is being used to personalize services, offering tailored recommendations and insights that allow clients to make smarter, more informed financial choices. By analyzing vast amounts of data, AI can detect patterns, predict market trends, and optimize investment strategies, ultimately empowering individuals and businesses to manage their finances more effectively.
However, as AI becomes a central player in banking, ensuring its responsible use is crucial. Banks must prioritize transparency, security, and privacy when integrating AI technologies, safeguarding client data from potential breaches or misuse. Additionally, the need for AI to be fair, unbiased, and ethically sound cannot be overstated, as it has the potential to shape financial outcomes for millions of customers. When implemented with care, AI will not only streamline operations but also foster greater trust and confidence between banks and their clients, propelling the financial industry into a more efficient and dynamic future.
Day 3 highlights were not disclosed, as the focus shifted more towards creators and brand management, such as 'The New Codes of Influence and Digital Consumption,' which are not directly relevant to this newsletter. If you're interested in this topic, please email me, and I’ll send you the highlights privately.
Last week in LatAm at a glance
Is the future bright for LatAm markets?
The M&A market in Latin America started 2025 at a slower pace, with an 11% drop in the number of transactions and a 27% decline in deal value compared to Q1 2024. This reflects increased investor caution amid political instability, regulatory uncertainty, and macroeconomic pressures across the region.
Brazil remained the most active market, with around 400 deals and approximately USD 6.8 billion in value, despite also showing a year-over-year decline. The standout performer was Argentina, which defied the regional trend with a 27% increase in deal count and a 125% surge in deal value, reaching USD 1.75 billion — a sharp contrast to its regional peers.
Chile and Mexico showed weaker performance due to regulatory changes, upcoming elections, and a more volatile political environment. Colombia and Peru also saw declines, driven by a mix of domestic political factors and external economic pressures that dampened investor appetite.
Currency volatility, electoral cycles, and evolving regulations have prompted a more selective and cautious approach to dealmaking across most Latin American markets. Both private equity and venture capital segments were heavily impacted — private equity transactions fell by over 50%, and VC activity also declined in both volume and value, reflecting a more demanding diligence environment.
Despite the headwinds, foreign investors remain active. Companies from Europe, North America, and Asia led cross-border activity, while Latin American groups continued to pursue acquisitions, especially in the U.S. and Europe. A major deal in the materials sector also helped drive overall volume.
While the landscape remains complex, sectors such as healthcare, technology, infrastructure, and logistics continue to present relevant opportunities for investors willing to navigate with greater scrutiny and strategic focus.
Monday
Hot news
The end of an era at SXSW?: Hugh Forrest, the key figure of SXSW since 1989, was dismissed amid a restructuring led by the event's new owner. His departure marks the end of an era for SXSW, which is facing challenges such as the reconstruction of the Austin Convention Center and changes to the program.
Brazil to offer tax breaks to lure data center investments: Brazil’s Finance Minister Fernando Haddad is visiting Silicon Valley to pitch Brazil as a sustainable hub, aiming to unlock 2 trillion reais in investments over the next decade. The new tax incentive policy offers tax exemptions on IT-related capital expenditures, excluding construction costs.
Plug and Play has announced a strategic partnership with Londrina's innovation ecosystem to position the city as a reference in govtech and digital transformation. The collaboration includes creating a physical innovation hub, startup incubation and acceleration programs, and internationalization initiatives.
Riqra, a Peruvian startup, has exceeded $1 billion in transactions and solidified its presence in Chile. It provides tailored B2B solutions by linking small businesses with distributors across Latin America.
Deals
Credituz wants to save the "S" in "ESG": Credituz raises R$ 31 million to finance properties for social minorities, using AI and open finance to break barriers in mortgage lending.
LG - Lugar de Gente hires bank to find a buyer, with a valuation of up to R$ 1.5 billion.: LG - Lugar de Gente, a Brazilian HR Tech, hired Bank of America to find a buyer, with a valuation of up to R$ 1.5 billion. The company, which generated R$ 450 million in revenue in 2024, has already made strategic acquisitions and plans to expand through M&As or a potential public offering.
Tuesday
Hot news
Brazilian crowdfunding raised R$790M in Q1 2025 - already 55% of 2024’s total - fueled by growing momentum on platforms regulated by the CVM.
Claro is investing R$1B to expand its multicloud services which includes the launching of a Digital Solutions Hub tailored to the needs of Brazilian enterprises.
Spin by Oxxo and Félix Pago have joined forces to offer instant, fee-free remittances from the U.S. to Mexico directly via WhatsApp.
CloudWalk introduced Jim, an AI assistant for its 4M+ InfinitePay users, designed to support pricing, marketing, and cash flow decisions.
Deals
Mastercard invests in Corpay’s cross-border business unit. Corpay becomes exclusive partner for commercial cross-border payments distributed to Mastercard’s financial institution customers.
Kiwi raised US$10M to launch a healthtech platform tackling Latin America’s healthcare financing gap. It offers instant patient credit and banking tools for providers, eyeing expansion to Mexico in 2026.
Wednesday
Hot news
Brazil Bets on Data: Dataprev and Drumwave Join Forces to Monetize Citizens' Info: Brazilian state firm Dataprev partners with Drumwave to turn public data into a valuable economic asset.
LIFT Lab: Brazil's Fintech Accelerator Spurs $80M+ in Private Investments: Over eight years, Brazil's LIFT Lab has accelerated 78 fintech projects, attracting over R$400 million in private investments.
Deals
iFood Goes Beyond Delivery with Trio of Strategic Acquisitions: iFood acquires three restaurant management firms to deepen its presence in back-of-house operations.
Brazil's Speedbird Aero Secures €3.5M to Expand Drone Logistics Across Europe: Brazilian drone startup Speedbird Aero raises €3.5 million from Portugal's Lince Capital to scale operations and establish a final assembly line in Europe.
Zapia Raises R$70M to Scale AI Assistant for WhatsApp: Brazilian startup Zapia secures R$70 million in seed funding to expand its AI-powered executive assistant for WhatsApp.
Thursday
Hot news
Visa and Bridge Launch Stablecoin Payment Cards in Latin America: Visa and Bridge introduce stablecoin-linked cards in six Latin American countries, enabling crypto spending at millions of merchants.
Brazil's Clean Energy Edge: Paving the Way to the future of AI: Brazil harnesses its renewable energy resources to become a prime destination for AI investments and data centers.
Deals
PLP Expands Telecom Portfolio with Acquisition of JAP Telecom: PLP acquires JAP Telecom to enhance its presence in the Brazilian telecommunications market.
Friday
Hot news
Hiker Ventures: Aiming for Zero Mortality Rate in Portfolio Startups: Hiker Ventures focuses on supporting B2B startups with early-stage investment, aiming for sustainable growth and zero mortality in its portfolio.
OLX Group Appoints New CPO and VP of Data & AI to Drive User-Centric Innovation: OLX Group enhances its leadership team with Lilian Ferraz as Chief Product Officer and Fabio Marcolino as VP of Data and Artificial Intelligence, aiming to bolster user-focused innovation.
Deals
Uberlândia: Could this be the tropicalized Silicon Valley? Headline valuates Blips at R$ 500 Million Post-Money: Headline invests R$ 50 million in Blips, a startup specializing in equipment financing for small businesses, to support its expansion and the creation of its own financial institution. This is the 6th investment move in startups from Uberlândia in 2025 (one every 20 days), with approximately R$ 250+ million transacted this year alone.