·      Tech businesses satisfying local business demands whilst reaching international markets

There has been strong growth in tech development in Latin America and the Caribbean so much so that the technology ecosystems in many countries in the region are thriving.

Technological progress in countries like Brazil, Argentina, Mexico, Chile, Colombia, Costa Rica or Caribbean islands such as Jamaica and Barbados, is allowing disrupting companies to emerge. Companies are satisfying local business demands but also reaching international markets. 

At the same time, even though Latinos in the US remain underrepresented in the tech industry, over the last few years more Latino founders, executives and leaders have risen within technology.

Nearshore Americas is reporting that the convergence of these two factors – stronger tech development in Latin America & Caribbean combined with broader presence in the US tech industry of people with cultural connections to the region, are opening a bridge for partnerships and greater collaboration. 

Charly Esnal, Co-Founder of BASE Miami, a management consultancy that helps Latin American organizations find their footing in the US market advised that, “in terms of Latino tech leaders in the US, we see that there is a greater openness to look at Latin American solutions for US implementation. Having a Latino connection, there is less friction in understanding how Latin culture operates and the malleability companies have that allows adaptation to working with US companies.” 

Technology Growth in Latin America & Caribbean

By 2019, pre-pandemic year, Information Technology revenues in Latin America & Caribbean were already experiencing a boom. That year, revenues from the virtual and augmented reality (VR/AR) sector grew 53%, artificial intelligence (AI) 44% and internet of things (IoT) 28%. 

In the last five years, US venture capital activity in Latin America has exploded as well. Last year alone, the region tallied US$4 billion in deals for the second year in a row and closed a record 488 contracts. At the same time, the software-as-a-service (SaaS) market in Latin America & Caribbean is slated to grow around 28% in the 2019-2026 period.

In an interview with the Brazilian publication, Valor Econômico, Marcelo Claure, CEO of Softbank International, which has committed $3 billion to fund Latin American startups, reports that “there is a lot of interest from banks, family offices, who suddenly discovered Latin America. The volume and capital invested in growth in the region in 2019 was US$2 billion, and our projection is that this will increase to US$28 billion in 2022.”

This reality creates the space for US businesses to increasingly consume products and services from Latin America & Caribbean-based companies.

Tony W. Haywood, technologist and PhD candidate at Northcentral University in San Deigo explained the situation told Nearshore Americas that, “many of the larger businesses are ready to leverage tech talent, goods and services from the region. With the world able to now hire remote, more individuals and organizations have the opportunity to work for a US or global company. I see a lot of effort, all in all, from Brazil, Colombia and Argentina from a tech standpoint.

He stated that many global companies are establishing partnerships with businesses of all sizes in these countries the most from my experience.”

Latins presence growing America’s tech industry

According to the US Census, only 6% of people holding computing operations roles are fulfilled by Hispanics. Currently, the S&P 500 counts 16 Hispanic CEOs among its ranks. A recent report of the group, LatinxVC found that despite the Latino population comprising 19% of the US population, Latino investment professionals comprise only 2% of total venture capital professionals. 

Despite the Latino population comprising 19% of the US population, Latino investment professionals comprise only 2% of total venture capital professionals. Despite this underrepresentation, today many Latinos occupy positions as CEO’s, CTO’s and C-suite executives in general. From positions in big companies such as Google, Microsoft or Samsung to small startups all over the country.

Considering this progress, questions are being asked about the level of readiness of these tech leaders in working with, partnering, supporting or simply encouraging technology practices and professionals in Latin America & Caribbean. There has been an increase in investment dollars going to Latin startups from the US but it’s mainly for their development in Latin America, not in the US.

For Valerio Adrián Anacleto, CEO of the software architecture company Epidata, there are already various initiatives to capitalize the growth of Latin American & Caribbean companies in the US market.  She explained that there are several individual projects of established Latinos in the industry in the US but there is still missing link to bring all of that together.

“If more people know about what’s happening in Latin America, they’d be more tempted to buy or utilize services from people in the region,” said Anacleto, who is also a mentor at Manos Accelerator, a startup accelerator targeting Latino entrepreneurs.