Crypto VC Investments in Latin America Grew Almost Tenfold in 2021 to $653M

Consumer-facing crypto exchanges and retail trading platforms received the majority of funding, according to the Association for Private Capital Investment in Latin America.

AccessTimeIconFeb 16, 2022 at 3:09 p.m. UTC
Updated May 11, 2023 at 7:11 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Venture capital investments in crypto and blockchain firms in Latin America reached $653 million in 2021, almost 10 times more than was invested in 2020, according to a report published by the Association for Private Capital Investment in Latin America (LAVCA).

Investments were concentrated in consumer-facing asset exchanges and retail trading platforms, which together captured $607 million.

Crypto investment in Latin America continued to boom compared with VC investments in crypto in the region that totaled just $68 million in 2020.

Globally, VC funding for blockchain startups reached $25.2 billion last year, up 713% from $3.1 billion in 2020, according to CB Insights’ “2021 State of Blockchain” report.

Bitso, a Mexican crypto exchange with operations in Argentina and Colombia, raised $250 million in May 2021 and became the first crypto unicorn in Latin America. The leading Brazilian crypto exchange, Mercado Bitcoin, raised a total of $290 million across three rounds and reached a $2.2 billion valuation.

Three Argentinian crypto exchanges also raised VC funding in 2021. In September, Ripio raised $50 million in a Series B funding round. And in August, Lemon Cash and Buenbit raised $16 million and $11 million, respectively.

Also in August, Kaszek, a leading Latin American venture capital fund, made its first decentralized finance (DeFi) investment, leading a $3 million round in Exactly, a startup that is building an open-source, noncustodial credit protocol on the Ethereum platform.

Overall, Latin American venture investments reached $15.7 billion in 2021, compared to $4.1 billion invested in 2020, according to LAVCA.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Andrés Engler

Andrés Engler was a CoinDesk editor based in Argentina, where he covers the Latin American crypto ecosystem. He holds BTC and ETH.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.