Brazil Secures The Most Venture Capital Funding In Latin America in Q3

When it comes to venture capital funding in Latin America, countries are racing to the top. And after briefly losing ground to Mexico earlier this year, new stats show that Brazil is back on top as Latin America’s venture capital leader.

According to data by Crunchbase, Brazilian startups raised $692 million in Q3 2025, a huge 47% year-on-year increase and a monumental 92% rise since Q2.

And whilst the stats don’t tell the whole story, they do help cement Brazil’s reputation as one of the leading startup hubs in the region.

 

Brazil Makes A Comeback

 

In Q2 of this year, it looked like Brazil’s crown as the regional startup leader was in question. For the first time in over 10 years, Mexico was announced as the country whose startups attracted more venture funding than their counterparts in Brazil.

In Q3 however, Brazil made quite the return, raising a huge $692 million vs Mexico’s $126 million.

But it isn’t just these two powerhouses that are attracting investment.

Across Latin America, startups have collectively raised $1 billion in the third quarter, up 21% year on year and 8% higher than Q2.

When it comes to the stages attracting the most attention, late-stage and growth deals made up the biggest chunk, attracting in $477 million (up 176% YoY).

 

Brazil’s Biggest Deals In Q3

 

Brazil’s rise was driven by a handful of raises that contributed to its massive bounce back. One of these was Omie, a SaaS startup that offers cloud-based management software for SMEs that closed a $160 million Series D round, valuing the company at $700 million.

Other top raises included Canopy, a Sao Paulo-based company that raised $100 million and Kanastra who raised $30 million in a Series B round.

Meanwhile in Mexico, Kapital, a Y combinator backed online bank also drew in a huge $100 million Series C raise that pushed its valuation to a huge $1.3 billion.

 

 

Fintech And AI Lead The Way

 

Whilst fintech has historically been Latin America’s most funded sector, unsurprisingly, interest in AI is also growing.

Camila Vieira, head of Brazil at QED Investors, told Crunchbase News “We saw big rounds, a solid shift to AI taking over, and lots of activity in fintech both in terms of deals and market events…The AI hype felt like it was a wave behind the U.S. for a bit, but now we are seeing application layer solutions getting funded in addition to companies leaning heavily into AI-enhanced strategies.”

 

Who Are Some Of Brazil’s Most Successful Startups?

 

As of August 2025, according to Tracxn, Brazil is home to 25 unicorn startups.

Some of these include:

QuintoAndar: A $5.1 Billion virtual real-estate platform.

C6 Bank: A $5.05 Billion platform helping SMEs with the tools they need to set up, manage and promote their online businesses.

Creditas: A $4.8 Billion digitally secured lending platform.

Nuvemshop: A $3.1 Billion gaming platform that is designed to discover, buy, rent and store games on the cloud.

 

What Does Brazil’s Bounce Back Mean For The Region?

 

As Brazil once again takes Latin America’s funding crown, it’s a sign of increased investor confidence in the region.

But the influx of capital isn’t just good for the country’s reputation, it also helps boost the economy, create new jobs and draw in more innovation.

For now, Brazil can stand firm in the knowledge that its $692 million raise is a sign that investors aren’t just interested in its startups, but actively backing them.