Venture Capitalists Expect to Bring Their ‘Dinero’ to Latin America

Photograph by Dado Galdieri/Bloomberg

Latin America is expected to be a major growth area for investments, according to a new study.

Startups and investors are going global in a big way next year, according to a study released today.

About two-thirds of chief executives from venture-backed U.S. companies expect to expand activity abroad in 2013, according to a survey by the National Venture Capital Association. Another 15 percent say they’ll maintain the same level of activity.

Most VCs surveyed expect to see increased U.S. investment in Latin America and less in Western Europe next year, the study found. Forty percent of investors said China would be home to a higher level of funding, followed by India at 37 percent.

Many of the 600 business professionals who participated in the poll were less confident in the prospects for the U.S. market next year. Forty-nine percent of CEOs and 42 percent of VCs said they expect the U.S. economy to improve next year, a decrease among both groups from last year’s study.

Mark Heesen, president of the NVCA, attributed much of the skepticism to concern about the fiscal cliff of $600 billion in tax increases and spending cuts that would come into effect in January without an agreement between Congress and President Barack Obama.

“The potential for growth is palpable, with positive forecasts for startup jobs, technology innovation and global activity,” Heesen said in a statement. “But to realize this promise we must get on the right track in Washington, and quickly.”

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