Spain-listed phone operator Telefónica’s Wayra corporate venturing unit has partnered with Inter-American Development Bank (IDB) to set up an open innovation and corporate entrepreneurship platform in Latin America.
The launch of CIV-LAC as a regional corporate entrepreneurial platform is expected to help 600 startups through open innovation processes with large and medium-sized companies from Spain and Latin America.
José María Álvarez-Pallete, president of Telefónica, said: “This partnership and collaboration enables us to maximize our contribution toward just socioeconomic development through a green and inclusive digitalization of the region that helps narrow the gaps and help entrepreneurs and corporations consolidate their place at the forefront of the digital world.”
Interest in the region among VCs has increased in the past year. Wind Ventures, the corporate venture capital arm of Copec, a Chile-based energy company in Latin America and the southeast US, said its second annual survey found VC sentiment toward Latin America (Latam) as an attractive growth market for startups has dramatically increased from last year.
The research found two-thirds of the 40 VCs surveyed indicated financial technology would remain the hottest investment area, followed by energy (20%) and mobility (11%).
Brian Walsh, head of Wind Ventures, said: “Venture capitalists have become more aware and more bullish about the opportunities in the region, as indicated by our own research, and they are putting a lot more capital to work there as a result. According to Pitchbook, VCs have invested $12bn across 500-plus deals in Latin America so far this year, which is more than what was invested in the previous three years combined.”
Investors surveyed ranked the political climate (95%) as the biggest challenge for scaling a startup in Latin America, followed by economic (51%), cultural (39%) hurdles, and the impact of covid-19 (17%).
The full findings can be found here.
