Despite the economic backdrop, fundamentals and growth drivers have largely remained the same, especially in Latam. New regulation, growing internet adoption, and high cell phone penetration are allowing businesses to flourish. Thus, while VC funding has fallen 23% Quarter-over-Quarter, Q2 remained the sixth largest funding quarter on record. Furthermore, as entry valuations in early rounds contract, later stage rounds are growing, making Series A an ideal entry point, increasing exit potential for our investors.

As always, we continue to strategically optimize capital and resource allocation according to opportunities and the needs of our portfolio companies.