Latin American Governments

To strengthen its growth, Latin America needs to develop the venture capital industry. In this sense, the positive thing is that you for the venture capital industry, the region has great appeal. This appeal lies in the fact that although, in General, the region’s economies managed to consolidate its growth and macroeconomic stability, which opens them great possibilities to be able to maintain its sustained growth, still have great amount of sectors by developing and investments necessary to make ahead. The observed improvement in the social situation, which although it stops this year product of the international financial crisis but with security will resume once surpassed this depression in the world economy, on the other hand, leaves a potential market of great attraction to exploit that will seek to orient towards the consumption of new products. Apart from the good prospects that offers Latin America for the development of the venture capital industry, at present, the region is showing which can produce benefits in the immediate term even in periods of crisis. A clear proof that Latin America is conducive ground for the development of venture capital industry reflects this annual survey of Venture Capital of Latin America 2009 conducted by the firm of audit, tax and advisory KPMG LLP, in which 63 percent of executives in the venture capital industry asserts that the performance of investment (ROI) achieved in 2008 remained the same or increasedcompared with 37% who said having an ROI more low.

Another interesting result that arrived in the survey conducted by KPMG reveals that you for 45% of the respondents, Latin America became more attractive for venture capital investment during the economic crisis, and 14 per cent said that there was no change, while 30% said that the region had become less attractive. Moreover, for 58% of respondents expect a greater global investment in Latin during 2010-2012, while 12 per cent said that the investment would remain firm and only 29 percent expressed their expectation of lower global investment in the region in that period. When it comes to inquire about what sectors are more attractive, for respondents the infrastructure (47%) and energy (26%) are preferred for the investment sectors. These two sectors are also key to the sustained growth in the region and so it is that Latin American Governments have focused on investing in them. Among the countries most attractive to develop venture capital investments appear according to KPMG, Brazil, Mexico and Colombia, while at the other end, Argentina and Venezuela are.

Another country which will surely attract interesting flows of venture capital is Peru, whose economy will keep growing at a brisk pace during this difficult year. Latin America and the venture capital industry may build a society with great potential for mutual benefits. The most attractive economies are which have carried out economic policies more healthy, predictable and transparent, in what represents a new lesson to the rest.