SoftBank Scales Back Latin America Tech Investments, Completing Only Two New Deals in Two Years
Alina Collins
SoftBank completed only two new deals in Latin America over the past two years, with its dedicated $8 billion LatAm fund fully deployed; the retreat marks both the region's tech-investment cooldown and SoftBank's decisive pivot toward core AI bets.
What exactly happened to SoftBank in Latin America?
Over the past two years, SoftBank closed just two brand-new investments in the region, alongside 12 follow-ons, secondary transactions, and acquisitions.
Alex Szapiro, SoftBank's Brazil head, said the number of companies meeting its $50 million minimum has shrunk dramatically.
His bluntest line: "It's hard to imagine an Anthropic or OpenAI emerging in Latin America right now."
This means → SoftBank isn't uninterested — by its own bar, there are almost no qualifying targets left.
Where did the money go instead?
SoftBank's dedicated LatAm fund — $8 billion — has been fully deployed. No fresh ammunition remains.
Latin America's share of SoftBank's total equity holdings fell from roughly 5% to just over 2% in three years.
Resources are tilting hard toward AI: a large slice of Vision Fund 2 went to OpenAI, and Arm Holdings alone accounts for about 40% of total holdings.
In plain terms = Masayoshi Son is betting on AI chips and foundation models. LatAm tech is no longer a priority.
Why can't LatAm tech "grow up"?
Szapiro cited four structural gaps: insufficient hardware capacity, weak infrastructure, a small talent pool, and limited deployable capital.
Many companies SoftBank backed during the boom were founded in the 2010s and raised large late-stage rounds in the low-rate era; they now need time to digest.
For earlier-stage startups, Szapiro was candid: "We don't really have the ability to nurture these companies."
This reflects SoftBank's core model — it excels at large late-stage bets, not at walking early companies through slow growth.
How cold is the broader LatAm venture market?
LAVCA data shows LatAm startup funding fell from a 2021 peak of $16 billion to $4.3 billion in 2025 — a drop of more than 70%.
Deal count has declined steadily since 2022, with both capital and deal flow contracting.
This means → SoftBank's pullback is not an isolated case — it mirrors a region-wide venture winter.
Is a comeback still possible?
SoftBank still holds a portfolio of roughly 80 companies in the region and is evaluating four to five new prospects.
Szapiro said "a significant portion" could list once the IPO window reopens, including Kavak, Rappi, QuintoAndar, and Creditas.
TheVentureCity founder Laura González-Estéfani argued: "The foundation is laid — we just need brave capital to return."
Yet analysts note that SoftBank's earlier LatAm enthusiasm was inseparable from Marcelo Claure, the former regional lead who left in 2022 — widely seen as a turning point.
LatAm tech — coiled spring or permanent periphery?
BULL
Foundation exists
Companies built during the $16B peak survive; several are near IPO-ready.
AI opens a new lane
SoftBank is hunting consumer AI firms with proprietary data and global-caliber teams.
BEAR
Structural gaps persist
Hardware, infrastructure, talent, capital — four bottlenecks with no quick fix.
Capital attention has shifted
Global money is flooding core AI plays; LatAm is not on the priority list.
In plain terms = the last boom left behind a crop of maturing companies, but the prerequisites for the next wave of big money — infrastructure and talent — show no sign of rapid improvement.
Content is for reference only, not financial advice.