SoftBank completes just two Latin America deals in two years

What happened

SoftBank has completed only two new deals in Latin America over the past two years, a sharp slowdown from its earlier pace. The firm is evaluating four or five potential targets but says fewer companies meet its preferred investment threshold of $50 million（約80億円） or more. SoftBank has fully deployed the $8 billion（約1.3兆円） in its dedicated Latin American funds.

Why it matters

Latin America's venture capital environment has cooled dramatically since the pandemic-era boom. As venture investors increasingly focus on artificial intelligence, the pool of opportunities has narrowed. SoftBank's head of Brazil noted the region lacks the depth of talent, hardware capacity, and infrastructure seen in Europe, the U.S., and Asia, making it harder to find companies capable of competing globally.

What to watch

SoftBank is targeting consumer-oriented AI companies with strong proprietary data and global-scale technology teams for any new deals, which will be financed through the Vision Fund. The firm also notes that a good chunk of its existing roster of 80 or so companies in the region will be ready to go public once a window opens.