Investment in Peruvian startups grew by around 63% in just two years. Peruvian Association of Seed Capital and Entrepreneur (PECAP) provided these numbers. They recently announced the q4 results related to 2018 venture capital.
Peruvian startups recorded an increment in their investment between 2016 and 2018. Over the first year, they received $5,6 million. In 2017, the investments reached $7,2 million. In 2018 period, the sector raised $9,1 million, bringing to a total of $21,9 million over a 3-year period.
Transactions and additional investments recorded in q4 of 2018 showed a big improvement. Nine investment rounds in local startups gathered $2 million in local investments and $320K in international investment.
The Ministry of Production contributed to the local startups success with the program Startup Perú. This program provides seed capital to attractive business ideas like Reto Biodiversidad (Biodiversity Challenge). Startup Perú has launched several calls for investment since 2013 and has supported more than 400 startups.
The report showed that 28 investments in seed capital were done in 2018, mainly by UTEC Ventures, The Board, and Winnipeg Capital. Other ecosystem supporters were Outbound Ventures, Magma Partners, Wayra, 500 Startups, Inca Ventures, and Angel Ventures.
Companies with Global Reach
The report also highlighted the Peruvian companies expanding in foreign countries like Crehana, Xertica, Chazki, Juntoz.com, Wabu, SeguroSimple.com, Runa, Quantico, Fitco, Mesa 24/7, Solven, Aprendiendo, KO Urban Detox and Urbaner. Regional companies were underlined too: Mi Media Manzana, Karaoke Smart, Bquate, Turismoi, Riqra.com, Qempo, Quantum Talent and Emptor.
In the Peruvian market, regional startups such as Xertica, Tandem, Taximo, Rappi, Liftit, Facturedo, Políglota.org, Mercado Libre, OLX, Despegar, and Afluenta contribute to the tech ecosystem. But you can find global startups like Cabify, Uber, Selina, We Work and Glovo.
For 2019, the report predicts that the venture capital investments stay the same or even reach double digits investments in financial areas such as edtech or fintech, along with an increase in local and foreigners investments.