Why the Fintech Sector Is in the Focus of Venture Capital Investors in Chile

According to the survey carried out by the Chilean Association of Investment Fund Administrators (Acafi) and Endeavor, together with EY, 67% of entrepreneurs and venture capital fund managers anticipate greater investment in the Chilean fintech companies for 2024.

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Why venture capital investors will turn to the fintech sector

Financial services through digital means and the use of technology have become increasingly in demand, especially in small and medium-sized businesses. This was reflected in a survey on 2024 projections and expectations for venture capital and entrepreneurship, carried out by the Chilean Association of Investment Fund Administrators (Acafi) and Endeavor, in conjunction with EY.

Of the 47 high-impact entrepreneurs, along with 15 venture capital fund managers who participated in this study, 73% highlighted that the fintech sector is the most attractive to invest in. Likewise, SMEs remain optimistic, as 67% anticipate greater investment for 2024.

Venture capital investors in Chile

In this sense, Gustavo Ananía, CEO of RedCapital — a fintech focused on financing for SMEs with the help of Artificial Intelligence — assures that “despite having been a complex year, where Latam’s global economy decreased, in 2023 we managed to finance more of US$ 355 million in Chile, Peru and Colombia, supporting more than 1,000 SMEs and microentrepreneurs. Likewise, we managed to grow 39.2% compared to 2022 and thanks to our technology, we had 0.38% bad debts this year.”

Likewise, the executive highlights, compared to last year, the beginning of the commercialization of the risk engine with Artificial Intelligence, which is used to evaluate the condition of companies. “This fills us with pride, given that the system took around two years to calculate the risk and detect fraud patterns, which is why it has been very useful in the three countries where we are operating.”

Finally, Ananía sees 2024 with optimism due to the new agreements concluded at the regional level, which will allow not only to continue supporting SMEs with financing, but many will be able to benefit from the alliances they have closed with the main banks in Latin America.

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(Featured image by Juan Pablo Ahumada via Unsplash)

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First published in America economia. A third-party contributor translated and adapted the articles from the originals. In case of discrepancy, the originals will prevail.

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