More than 75% focused on technological ventures in the financial industry ( fintech ), digital commerce, information technology (IT) companies, software services through the Internet and technology solutions in the agricultural, health and biological sectors.
Between 2020 and 2023, the private equity industry invested a total of US$16.5 million in Uruguayan startups, with average investment tickets around US$380,000.
This industry, also known as entrepreneurial capital, is made up of venture and seed capital firms, “angel” investors and companies in other areas.
Like what happened globally, more than 75% of these investments were concentrated in technological ventures in the financial industry ( fintech ), digital commerce, information technology (IT) companies, and software services over the Internet. and technology solutions in the agricultural, health and biological fields.
The data comes from the first survey carried out by the economic consulting firm CPA Ferrere based on the responses of the partners of the Uruguayan Private Capital Association (Urucap), a non-profit organization that brings together “angel” investors (those who they go in search of new projects), venture capital firms and other entrepreneurial capital funds.
53% of those who participated in the survey were institutional investors, while the remaining 47% were individuals. The majority of those surveyed (48%) said that they prefer to make investments in the early stages of entrepreneurship (seed stage), while 36% prefer to do so in emerging companies with high growth potential ( venture capital ) and 16% chose do it in already established companies ( private equity ).
In the period between 2020 and 2023 (until July), Urucap partners participated in a total of 72 Uruguayan investment rounds and the greatest activity occurred in 2022 with a total of 28 rounds.
In relation to the duration of the investments made, none of those consulted said they had contributed capital with the objective of getting these companies out (on the market) in the short term (between one and two years), while the majority demonstrated their interest in medium-term investments (between three and seven years).
On the other hand, two out of every three investors consulted declared that they had made impact investments, mainly with an environmental focus (41%), while one out of every six investors said they had a strong tendency to invest in projects led by women.
The situation globally and in Latin America
The report noted that globally, the private equity industry showed less dynamism in the value of transactions in 2022 and 2023, after the peak of US$ 759,000 million that it had registered in 2021. This, due to a global environment of lower liquidity, rise in international interest rates and a reconfiguration of business opportunities after the crisis caused by the covid-19 pandemic.
Likewise, the CPA Ferrere report indicated that the United States and China were the countries that concentrated more than 50% of the total investment received in the industry and that healthtech , fintech and cleantech were the three verticals that received the most investment worldwide.
