NEW YORK, Aug 30 (Reuters) - Two-thirds of Latin American startups have laid off staff over the last 18 months, as venture capital funding fell sharply in the region, according to "Latin America Digital Transformation" report by venture capital fund Atlantico.
Venture capital funding in the second quarter slumped 65% in Latin America, compared with last year, and down more than the 49% globally during the reported period.
As the volume of IPOs recovers globally, venture capitalists and Latin American unicorns may return to capital markets.
Fintechs are among the fastest growing startups in the region, with digital payment systems such as the Central Bank of Brazil's PIX scheme helping to increase bank account penetration in the region.
The launch of a new digital payment system in Mexico, as well as the arrival of digital banks, can change the scenario, according to the report.
Persons:
IPOs, Julio Vasconcellos, Tatiana Bautzer, Sherry Jacob, Phillips
Organizations:
Atlantico, Venture, SoftBank, Arm Holdings, Central Bank of, Thomson
Locations:
Latin America, Atlantico, Argentina, Mexico