Fintech
Why the Fintech Sector Is in the Focus of Venture Capital Investors in Chile
Financial services through digital means and the use of technology have become increasingly in demand, especially in SMEs. 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.
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.
Read more about venture capital investments and why the fintech sector is becoming more and more attractive, and find the latest business news of the day with our companion app Born2Invest.
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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This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
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.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us
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