Guatemala's startup ecosystem is experiencing a notable surge, mirroring the broader trend of entrepreneurial growth across Central America. As one of Central America’s largest economies, the country has seen a growing number of entrepreneurs launching ventures that address both local and regional market needs. While venture capital activity in the region is still in its nascent stages, it has shown promising signs of development. In this article, we have compiled a comprehensive list of top Venture Capitalist Funds (VCs) in Guatemala that can provide you with the capital and support to help you succeed in this beautiful country!
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Venture Capitalist Funds in Guatemala
The venture capital firms below are actively looking for investments in promising companies throughout various stages and sectors. The stages stated do not limit the possibility of getting funding if your company is at any stage other than what is listed.
Year of Inception: 2024
Stage: Seed, Series A
Focus: Sector Agnostic
Notable Portfolio: -
Year of Inception: -
Stage: Seed, Series A
Focus: Sector Agnostic
Notable Portfolio: -
Year of Inception: 2019
Stage: Seed, Series A
Focus: Sector Agnostic
Notable Portfolio: Bricksave, Amiloz, Siembro, Digital Twin, Woof
Year of Inception: 2012
Stage: Seed, Series A
Focus: Sector Agnostic
Notable Portfolio: Megabite, Tesorio, Strike, Naya Homes
Year of Inception: 2015
Stage: Seed, Series A
Focus: Software, Hardware
Notable Portfolio: Luminar, Glovo, Fleet, Fountain, Unioncrate
Year of Inception: 2011
Stage: Seed, Series A
Focus: Digital Consumer: Home, Entertainment, Health, Fintech and Energy, B2B: Artificial Intelligence (AI), Internet of Things (IoT), Cybernetics, Cloud and Data, Next-generation Connectivity Networks and Web3
Notable Portfolio: Pulpo, Colektia, Decidata, Fidu, FirstJob
Frequently Asked Questions on Venture Capitalist Funds in Guatemala
What is the current state of venture capital in Guatemala?
Guatemala is part of the emerging venture capital ecosystem in Central America. While still in its nascent stages, the country has been attracting investment as part of the broader Central American market. Over the past six years, Central America as a whole has attracted over USD $266 million in venture capital investment, with Guatemala being one of the countries contributing to this growth. Notable transactions include significant funding rounds for startups like Dimitra and N1co. Events like the Volcano Summit 2024 in Antigua, Guatemala are playing a crucial role in connecting entrepreneurs with investors, bringing together over 1,800 attendees from 30 countries.
How does Guatemala’s venture capital scene compare to other Central American countries?
Guatemala's venture capital scene is developing but still lags behind some of its Central American neighbors. Costa Rica and Panama have more mature Fintech ecosystems and overall venture capital environments. Overall, Guatemala is showing promise. The country is part of the growing Central American ecosystem, which has seen an increase in the average number of deals from 22 per year between 2018-2020 to 43 per year between 2021-2023.
What sectors are attracting venture capital in Guatemala?
Guatemala shows potential in several sectors:
Fintech
Cleantech
Healthtech
Agritech
Infrastructure
What are typical investment ranges for Guatemalan venture capital investments?
For early-stage startups in Guatemala, investment sizes range from $50,000 to $500,000. As the startup ecosystem in Guatemala is still developing, larger Series A or B rounds are less common and may range from $1 million to $5 million for more established companies with significant traction. However, these figures can vary widely depending on the specific industry, company stage, and investor interest.
What due diligence requirements are specific to Guatemala's investment landscape?
Guatemala's investment landscape requires specific due diligence measures tailored to its regulatory environment. Foreign investors generally enjoy equal treatment and rights as local investors, with few restrictions on ownership. Key requirements include thorough background checks on potential partners, verifying compliance with local laws, and understanding sector-specific regulations, especially in industries like finance, telecommunications, and energy. Investors should conduct comprehensive risk assessments, focusing on areas such as anti-money laundering (AML) compliance, beneficial ownership structures, and political exposure. While Guatemala lacks a comprehensive data protection law, investors must be aware of emerging privacy concerns and potential cybersecurity risks. Additionally, due diligence should cover the complex regulatory environment, potential corruption risks in public procurement, and the need for enhanced monitoring in high-risk transactions or with politically exposed persons (PEPs).
Closing Thoughts on Venture Capitalist Funds in Guatemala
The country has witnessed several successful VC investments that have had a significant impact on the local startup ecosystem. A prime example is Kingo, a Guatemalan startup that secured an impressive $36.8 million in funding, marking one of the largest investments in the country's history. This substantial injection of capital not only validates the potential of Guatemalan startups but also serves as a catalyst for further innovation and entrepreneurial activity. As the ecosystem matures, it is likely to create a virtuous cycle, encouraging more entrepreneurs to build innovative solutions with global impact and attracting further investment to fuel the next generation of Guatemalan startups.
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