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.
Overall, Latin American venture investments reached $15.7 billion in 2021, compared to $4.1 billion invested in 2020, according to LAVCA.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.