By Tatiana Bautzer

NEW YORK (Reuters] – Latin American startup valuations were reduced by investors during the global stock exchange rout, and when interest rates are higher, according to Sergio Furio founder of unicorn fintech Creditas.

Furio said that startup founders who have raised cash at their peak valuations, like last July last year will need to be willing to take a cut if this year they are in dire financial need. Multiples attributable to private companies dropped after the collapse of the stock markets. This year, shares in Latam’s most important fintech, Nubank digital bank, fell by 60.6%.

Furio said that startups have been trying to save cash. Creditas was funded in January with a round of $260million. Its valuation was now $4.8billion. Furio stated in an interview to Reuters that this year’s fintech won’t raise capital. He spoke before meeting investors in New York.

Because its customers are dealing with lower income and higher inflation, the startup plans to maintain moderate credit growth. The startup also plans to show progress with the Voltz operation, which is an electric motorcycle maker for whom Creditas has invested 100 million.

Itau BBA’s investment banking division is holding its first New York conference since the outbreak of the pandemic. Itau BBA hosts around 150 Latin American CEOs.

Since the Ukraine conflict, emerging market investors are more interested in Latin America than ever because the region is less exposed to the greater geopolitical risk. These investors have also become increasingly demanding.

Alex Ibrahim (head of international markets, New York Stock Exchange) expects that markets will reopen in September for equity offerings from Latin America.

Ibrahim explained that “Investors have a higher standard of selection and are looking for clear pathways to success from startups.” Companies that spend cash are less attractive to investors. Although the market remains closed, the NYSE continues to work to help candidates from tech companies to be able to enter markets whenever there are windows.