We believe that the rapid evolution of technology is creating increasingly broader opportunities for disruption through digitalization in a wide range of industries. Technology-based solutions have quickly become the norm globally and are playing a dominant role across both professional and social activities. This is especially relevant in Latin America, given the favorable demographic profile of the region, a growing middle class with disposable income, high penetration of mobile devices and internet services, and early adoption of digital services.
We believe this rapid increase in data use and acceleration of processing capabilities, combined with improved connectivity and mobility, is a catalyst of several historical changes in the way people live and work in the region. Basic services have been increasingly digitized: shopping, education, healthcare, delivery, communication, data storage, among others. In addition, Latin America has a base of highly-talented founders, who have studied abroad or worked with multinational companies, and then return to the region to start high-growth companies.
Generally, technology companies in Latin America have been funded by the ever-increasing network of early-stage investors that has developed in the region. Up to now, many large tech companies in the region have no option but to remain private or founders have to look elsewhere such as late-stage investors from outside the region to fund the expansion of these companies and obtain capital for the business, liquidity for early-stage investors and reduce the overall cost of capital.