LATAM Founders in Europe: Entrepreneurial Migration Redefining the Tech Ecosystem

What happened?

According to the Elcano Royal Institute, 4.2 million Latin Americans reside in Spain and 3 million in other EU countries. A significant proportion are entrepreneurs seeking funding and business partners. The ICEX-IDB Lab-Endeavor initiative, now in its fifth edition, facilitates the expansion of Latin American scale-ups in Spain, connecting them with European institutions, funds, and corporations. This migration flow is not new: since the 2008 financial crisis and political crises in Venezuela, Argentina, and Colombia, the migration of entrepreneurial talent has accelerated. However, the current differentiating factor is the growing maturity of Latin American startups, which no longer just seek to survive but to scale globally. Programs like Startup Chile and Endeavor have cultivated an ecosystem that now exports scale-ups to Europe, following in the footsteps of cases like Nubank, which, although it did not migrate, inspired a generation of fintechs to look to the Old Continent.

Why is it important?

The funding gap is abysmal: in 2025, venture capital in LATAM was €3.55 billion (681 rounds), compared to €73.36 billion in Europe (8,626 deals), according to Cuantico VP and KPMG. This means that migrating founders access an ecosystem 20 times larger in capital. Additionally, the experience of Stephany Oliveros, founder of SheAI, shows that migration is not always voluntary: many flee political or economic crises but find in Europe a conducive environment to scale their startups. The impact on businesses is twofold: on one hand, Latin American startups gain access to more sophisticated investors and a single market of 450 million consumers; on the other, European companies benefit from diverse perspectives and business models proven in high-uncertainty environments. Sectors like fintech, edtech, and digital health are particularly represented, with startups like Colombian Frubana (which attempted to expand to Europe) or Mexican Konfío (which attracted investment from European funds). However, migration also entails costs: cultural adaptation, bureaucracy, and the loss of local networks. Compared to the migration of Indian talent to Silicon Valley in the 2000s, the Latin American phenomenon is more recent but equally strategic for Europe, which seeks to counter its innovation deficit against the US and China.

Consequences and projections

This trend has implications for both sides of the Atlantic. For LATAM, it means a brain drain of entrepreneurial talent, but also a way for its startups to access global markets and send knowledge remittances. For Europe, it injects diversity and business models adapted to emerging markets. Support programs are expected to multiply, and specialized hubs will emerge in cities like Barcelona, Madrid, and Lisbon. According to European Commission data, the number of startups founded by Latin Americans in the EU grew by 40% between 2020 and 2025. Projections from Cuantico VP indicate that if the trend continues, by 2030 at least 500 Latin American scale-ups will have headquarters in Europe. However, risks persist: brain drain could weaken the local LATAM ecosystem, and cultural integration remains a challenge. Initiatives like the Startup Visa in Spain and Portugal, along with accelerators like Plug and Play or Techstars, are facilitating the process. Readers should know that while the migration path is complex, resources such as entrepreneur visas, accelerators, and co-investment funds ease the transition. For example, Spain's K Fund and Germany's Rocket Internet have shown interest in Latin American startups. Compared to the migration of Israeli founders to the US in the 1990s, the Latin American case has a greater component of necessity, but also a higher potential for return if founders maintain ties with their home countries.

Key testimony

“It wasn't a single decision. Like many Venezuelans, I didn't leave by choice in the usual sense. I left because staying meant accepting a future without opportunities” — Stephany Oliveros, CEO of SheAI.

What readers should know

• European venture capital is 20 times larger than Latin American, making migration attractive for growth-stage startups.
• Initiatives like ICEX-IDB Lab-Endeavor offer concrete support for LATAM scale-ups wanting to establish in Spain.
• Entrepreneurial migration is not only driven by opportunity but also by necessity in crisis contexts.
• Europe is seeing an increase in startups founded by Latin Americans, especially in fintech, edtech, and digital health.
• According to Cuantico VP, VC in LATAM grew 13.8% in 2025 but remains marginal compared to Europe.
• The EU has launched programs like the European Innovation Council (EIC) that can be leveraged by Latin American startups based in Europe.
• The phenomenon is comparable to the migration of Indian founders to Silicon Valley, but with a greater component of political crisis.