July 1, 2001
The overzealous vision of Internet entrepreneurs in Latin America may have clashed with economic reality, but it provoked a wholesale change in the region's access to early-stage financing. Venture capital was introduced to Latin America, helping companies secure private equity investments in a region where money is scarce and costly.
Venture capital and private equity last year left a huge mark on Latin America's financial markets. In 2000, Latin American Internet companies received $2.57 billion in financing, up 268% from 1999, according to the consulting firm Bain and Co. There have been virtually no new investments in Internet start-ups in th
Latin American Internet companies were the first to attract venture capital to the region and private equity in the region blossomed. But investors are now far more selective and established companies are back in the limelight.