The latest Crunchbase data shows that Latin American companies in the United States have raised $250 million of the $39.85 billion allocated to venture capital funds in the US this quarter — or about 0.63%.¹ The figure for the third quarter is a sharp drop from the $2.3 billion the cohort raised in the third quarter last year and a dramatic drop from the $1.3 billion increase in the second quarter of this year. year.

In total, 1.5% of all venture dollars so far in 2022 has been allocated to companies incorporated in Latin America, down from 2.5% last year, according to the Crunchbase analysis.

The numbers are not surprising. Minorities and women in general are seeing dramatic declines in venture capital funding this year. australiabusinessblog.com previously reported that Black founders raised $187 million this quarter, meaning that given historical data trends, the amount allocated to Latin American-founded companies wouldn’t be far from that amount.

Meanwhile, PitchBook found that women-founded companies have raised 1.9% of all venture capital funds so far this year, again down from the 2.4% the group raised last year. australiabusinessblog.com previously noted that investors tend to retreat to their old networks to fund the founders they know during times of economic downturn — and those people are mostly white males.

The somewhat encouraging news is that funding for Latin American start-ups is on track to exceed the 2021 total; Much of the decline we see in the numbers above was due to a late-stage decline in funding. The reality remains that women and minorities are currently not doing well when it comes to increasing VC, and promises of change are gone. Last year, American companies founded in Latin America raised $8.5 billion. Through the end of the third quarter of 2022, that number stands at $2.7 billion, meaning it’s not even close to last year’s record amount.