Other significant late-stage deals involved Kapital and Canopy, reflecting strong growth in the region’s late-stage funding landscape.

The largest funding round in Latin America during Q3 was a $160 million Series D for Sao Paulo-based Omie, valued at $700 million, led by Partners Group on September 11.

Investors are increasingly focusing on the quality of funded companies, with heightened activity in AI and fintech sectors amid concerns over fraud and security, which caused Brazil to report R$10.1 billion ($1.88 billion USD) in losses in 2024.

Stablecoins are emerging as a major opportunity for cross-border payments and financial inclusion in Latin America, with growing regulatory clarity and interest in tokenization and yield-bearing stablecoins.

The rise of stablecoins is viewed as a key growth driver, with upcoming regulatory clarity in Brazil expected to foster local stablecoins, tokenization, and yield-bearing assets.

Major late-stage funding deals included a $100 million Series C for Mexico City-based Kapital, which boosted its valuation to over $1.3 billion, and a $100 million round for Sao Paulo-based Canopy, a B2B software platform.

Latin America experienced a significant boost in early-stage funding during Q3 2025, reaching $425 million—an 18% increase from the previous year and a 48% rise from the prior quarter—while seed and angel investments totaled $105 million, showing a 34% quarterly increase but a 47% annual decline.

Brazil led the region with $692 million in venture funding in Q3, surpassing Mexico, which raised $126 million, reversing Mexico's earlier lead in Q2.

Overall, Latin American startups raised over $1 billion in Q3 2025, marking a 21% year-over-year increase, with a notable surge in late-stage and growth investments totaling $477 million—up 176% from the previous year.

Investors view Latin America's fintech sector as resilient and transformative, especially in infrastructure for alternative assets and private credit, with notable investments in companies like Kanastra and Liquid.

The data, sourced from Crunchbase as of October 6, 2025, highlights the evolving venture capital landscape in Latin America, emphasizing sectors such as fintech, AI, and infrastructure for alternative assets.

Industry experts note increased funding activity in AI, fintech, and security, driven by rising fraud losses in Brazil and new regulatory developments in Colombia and Brazil.