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Latin America has a vibrant technology market, and a deeper partnership would benefit both sides, writes Heros Leask of Redfern Legal.
Latin America has become a global centre for tech innovation, fuelled by a young tech-savvy population and gaps in infrastructure. The UK has established itself as a leading global tech hub with a robust ecosystem supported by a mature regulatory framework. Together Latin America and the UK present exciting opportunities for startups, venture capital, and partnerships in deep tech, AI, and digital infrastructure.
In countries such as Brazil, Mexico, and Colombia, local tech players are driving change across sectors like e-commerce, digital payments, healthtech, and AI. Companies like Nubank and Mercado Libre have shown how tech can rapidly scale in underserved markets. A supportive regulatory environment has been a catalyst to the sector’s growth: Mexico’s modern fintech law has encouraged growth in that sector, while Brazil’s open data initiative is providing fertile ground for innovation.
The UK is home to established deep tech and AI operations, and benefits from a world leading academic base, investor networks, and regulatory support. London, Cambridge, and Oxford have driven research, commercialisation and start-up growth. The UK government’s Seed Enterprise Investment Scheme (SEIS) and other programs have provided tax incentives to investors in tech start-ups. While there is room for improvement of the incentive structures, their existence in some form should not be taken for granted. The aftermath of Brexit has seen a shift in the UK’s international focus and tech start-ups are increasingly looking towards emerging markets for expansion. Latin America provides growth and expansion opportunities along a number of fronts.
VC Investment: UK venture capital firms are increasingly exploring Latin American opportunities for their high growth potential. On the other hand, Latin American founders can explore fresh funding streams in UK-based VC.
Knowledge: UK firms bring experience operating in data governance, cybersecurity, and advanced R&D, While Latin American innovators offer insights into agile, mobile-first solutions and consumer adaptation.
Collaboration: Joint ventures can create innovative products tailored to demands in emerging markets. From AI infrastructure and tools to scalable cloud platforms and energy tech solutions, there is an abundance of synergy to be found between UK knowhow and Latin American industry, and market data.
Differences in the regulatory landscapes, and local market dynamics require careful preparation to navigate successfully. The UK operates under a Common law system, with the legislature’s approach to drafting laws, and judiciary’s enforcement of them, varying considerably from the Latin American Civil law-based systems. The differences in legal systems affects IP enforcement, licensing and execution of contracts.
It is always recommended to engage the services of experienced lawyers to help plan for market entry and advise on key regulations and applicable laws. What compliance looks like with respect to licensing, data protection, and consumer regulations in each territory will vary, ensuring product and system alignment with laws from an early stage of development is crucial.
As global demand for scalable tech solutions grows, we hope to see deeper collaboration and connectivity between Latin America and the UK. By embracing the transatlantic partnership both regions stand to benefit from the unique offering of the counterpart, the UK’s technical expertise and tradition of global trade, and Latin America’s dynamic and fast emerging markets.
“No, Colombia will not fall apart.” I’ve uttered this phrase countless times over the past year in client presentations entitled “Petro: The Epilogue”, about how we expect the endgame of Colombia’s first leftist administration to unfold.
In the aftermath of Mexico's second Fintech Week on April 3 and 4, and the Canning House Mexico Summit and Finance Conference, it is timely to reflect on the most recent and potentially pivotal developments in the sector. These events highlight the growing importance of digital finance in Mexico and its potential to drive economic transformation, particularly in enhancing financial inclusion and fostering international collaboration.
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