The White House will invest $1 billion in Latin American and Caribbean startups, with the launch of the Americas Partnership Investor Network. The massive program is set to shake up the start-up scene, spark innovation and drive economic growth, according to Forbes.
The announcement comes as U.S. National Security Adviser Jake Sullivan hosted an Americas Partnership kickoff meeting in mid-July, eight months after President Biden hosted a leadership summit to help create the program.
Sullivan said in a statement that the $1 billion "in private capital (will) uplift the next generation of entrepreneurs in Latin America and the Caribbean."
He also believes, "that if we— governments and investors— continue to work with one another to invest more in our hemisphere innovation, then we can achieve the region's full potential."
Part of the expected growth in entrepreneurship will be facilitated by the Uruguay Innovation Hub with support from Endeavor Miami, who will be curating connections between investors and Latin American founders.
Other nations participating in the initiative include Barbados, Canada, Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, Mexico, Panama, Peru and Uruguay.
"By mobilizing anchor investment, this initiative is not only providing potential financial resources but also fostering an environment where innovation and economic growth can thrive," said Claudia Duran, Endeavor Miami Regional Managing Director for North America.
The investment also comes as Latin America's entrepreneurial scene is buzzing both in the U.S. and at home. According to Forbes, Latino-owned businesses contribute $800 billion annually to the American economy.
Brazil and Mexico account for roughly 80% of the valuation of private startups in Latin America, with other fast-growing markets being found in other countries like Colombia and Chile, according to an Economist Impact analysis. The Americas Partnership may be able to further accelerate them.
"Critically for Latin America— the growth of private startups in the region has the potential to unleash positive economic spill-overs, as seen in some of the main innovation clusters around the world like the United States, india and China, where startups have driven net market opportunities and improved affordable access to key services including health care, financial services and education," wrote Monica Ballesteros, Economist Impact's Senior Manager of Policy and Insights.
Kori Hale, CEO of CultureBanx, a news website that focuses on Business and Finance, agrees, arguing that investing in Latin America could unleash the region's full potential.
"Moving forward, if we continue to see governments and investors working with one another to inject more capital into our hemisphere's growth, then it may be possible to achieve the region's full potential by fostering innovation, creating jobs, and driving sustainable economic development across the region," Hale said.
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