Americas: Q1’26 Venture Pulse Report

VC investment across the Americas surged in Q1’26, driven overwhelmingly by record‑setting AI megadeals in the United States, with activity remaining selective outside the largest transactions.

Americas Q1'26 highlights

VC investment in the Americas reached $270.1 billion across 3,618 deals
The Americas accounted for roughly 80% of global VC investment in Q1’26
US‑based AI megadeals overwhelmingly drove regional investment totals
Canada saw selective but resilient VC activity, supported by AI and deeptech
The Americas recorded a strong increase in new unicorn formations

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US drives Americas to record quarter

VC investment in the Americas reached a new high in Q1’26, powered almost entirely by activity in the US. Multiple historic AI megadeals dramatically skewed regional totals, while investment activity outside the largest transactions remained solid but highly selective.

Canada remains resilient amid government support

VC investment in Canada was more subdued on a quarter-over-quarter basis in Q1’26 following a strong end to 2025, but investor interest remained healthy, particularly in AI, deeptech, and defense-related innovation. Continued government initiatives aimed at strengthening domestic defense, spacetech, and industrial ecosystems are expected to help support investment momentum over the coming quarters.

Latin America sees mixed activity across major markets

VC investment activity across Latin America remained uneven in Q1’26 as investors continued to deploy capital selectively. Fintech remained a core area of focus, particularly in markets such as Mexico and Brazil, while AI, logistics, and infrastructure-related solutions also attracted growing interest despite ongoing economic and political uncertainty in the region.

Sector trends highlight AI concentration and diversification

AI remained the dominant investment theme across the Americas, accounting for a disproportionate share of total capital deployed — particularly at the late stage. At the same time, investors continued to back companies across health and biotech, defense tech, fintech, and energy-related sectors, reflecting an ongoing search for durable growth and resilience beyond headline AI deals.

Trends to watch for in Q2’26

Looking ahead to Q2’26, VC activity in the Americas will continue to be shaped by geopolitical developments, inflation trends, and the pace of exit activity. AI is expected to remain the leading driver of investment, while defense tech, spacetech, and energy infrastructure are also likely to see increased attention. M&A is expected to remain an important exit route as IPO activity stays selective in the near term.

This is an election year in Brazil, which means uncertainty is quite high. Capital is gradually returning, yet with a more disciplined lens - prioritizing sustainable growth, strong unit economics, and governance over the "growth at all costs" mindset that defined previous cycles. This means VC investment will likely be relatively soft in Q2’26, but we are watching an interesting trend: an acceleration on seed investment, fostered by rapid growth AI startups that are creating a strong pipeline for VC.

Carolina Oliveira

Partner, KPMG Private Enterprise Leader in Brazil and South America

KPMG in Brazil