This article is part of the LatAm Tech Weekly Series, written by Julia De Luca and powered by Nasdaq. Through Nasdaq’s global network, we partner with Latin American companies to support their entire business lifecycle to elevate their brand and access the global markets. Learn more about Latin American Listings here.
I take immense pleasure in witnessing women succeed, firmly believing that amplifying their triumphs catalyzes further inspiration for others. With this sentiment, Gupy, one of the largest HRTechs in Latin America, recently organized their annual event, HR4Results.
For those who may not know, Gupy was co-founded by four people, half of whom are women: Mariana Dias, the CEO, and Bruna Guimaraes, the COO. Unfortunately, women founders are still a rarity in Latin America, and these two are therefore undoubtedly paving the way and setting a benchmark for all of us. It is genuinely awe-inspiring to see the milestones their team is achieving.
HR4Results isn’t just another event; it holds the distinguished title of being the largest HR-specific event in the region. It boasts five thousand attendees and over 60 hours of exclusive content. Here’s to the power of women in leadership – go, girls!
Speaking of events, I will also participate in another cool event as a speaker on August 3rd, Startups Fever! And, if you want to attend, I have an exclusive discount for you. Click here!
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Opinions expressed here are solely my own and does not represent those of people, institutions, organizations that I may or may not be associated with in any capacity, unless explicitly stated.
On to the market update with again, some good news! Things are gaining momentum, and I am beyond excited. VC-backed companies that recently went public have posted strong gains in recent months. Pitchbook’s VC-backed IPO index risen 21.9% this year, while the PE-backed IPO index is up 18.7%. By comparison, the S&P 500 index has climbed nearly 14% in 2023. Below you can see how the index evolves in a longer time frame:
Another interesting read for the week was also PitchBook’s new Q4 2022 Private Capital Indexes, a report that shows return, risk and other reference metrics across each of the seven private asset classes. Very useful to compare and help on the construction of a well-balanced portfolio. Of course, I have selected the returns on venture capital to show here:
Monday
General news:
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The Brazilian Central Bank will launch new features for Pix: Pix Automático, BolePix, and Pix Garantido.
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Tiger Global has been actively seeking to generate liquidity from its investments made during the pandemic. Despite its initial efforts to sell a curated portfolio of assets through a secondary strip transaction, a deal could not be reached. As a result, Tiger Global has informed a select group of secondary investors that they now have the opportunity to bid on individual private companies within its portfolio.
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Temu, an e-commerce platform from the Chinese group Pinduoduo, valued at over USD 100 billion on Nasdaq, is already outselling Shein in the United States. It will enter the Brazilian market by the end of this year.
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Brazilian Mercado Bitcoin received the approval of the Portuguese Central Bank to act as a crypto exchange in the region.
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The Federal Revenue Department of Brazil has increased the taxation on software for the third time this year. According to a new regulation, all overseas software purchases and license updates are now subject to PIS and Cofins-Importação taxes. This means that Brazilian companies buying software from abroad will now have to pay these taxes based on the value of the remittances. The impact is significant, with the tax rate going from zero to 9.25%.
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Take Blip, Brazilian platform that offers B2B conversational solutions connecting businesses and customers in a humanized way, just went through a rebranding. The company is now called BLIP!
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According to a recent study by Meta, in the next 10 years, the metaverse will contribute USD 320 billion to the LatAm economy.
Deals:
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Viddy, Brazilian startup that helps retailers sell through WhatsApp raised BRL 1mm led by local firm DOMO.
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Startup Fz Sports, creator of Fanatiz, raised USD 74 million in debt and equity capital. Fz Sports is a global sports media and technology company. It operates Fanatiz, the world’s largest sports streaming service for Spanish-speaking audiences.
Tuesday
General news:
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Zendesk closed a partnership with Cubo Itau in order to help strengthen startups in the region.
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Polaris, a healthtech that has developed a solution to digitize and personalize the process of selling medications and supplements, has announced the opening of a fundraising round through SMU Investimentos, with a goal of raising BRL 2.5 million.
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CEO of PetLove, Talita Lacerda, is recognized as the winner of the young leadership category, by Brazilian newspaper Valor Economico.
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Pipefy, a global provider of no-code process automation solutions, has introduced Pipefy AI, an innovative technology that integrates artificial intelligence into its platform. Users can easily engage with the AI system to seek information and receive prompt responses. By harnessing the capabilities of OpenAI and GPT-4, Pipefy enhances data analysis capabilities, supporting teams in optimizing process models and operations.
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Brazilian fintech Paketa, focused in credit for the workforce, has just launched a financial health program. The initiative, named Vamos Juntos Paketá, is the result of a recently established collaboration agreement with the Brazilian Federation of Banks.
Deals:
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Asaas, fintech that offers B2B payment accounts and expense management through an ERP, raised BRL 100mm in an extension of its Series B to accelerate their growth. Investors were basically the ones already in their cap table, such as Inovabra, Parallax and others. The final objective: 1 billion in revenue by 2025 and more than 1 million active clients.
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Online returns startup Rever raises USD 8 million in its second funding round.
The platform claims to reduce refunds by up to 45% through personalized solutions that encourage alternatives such as gift cards or product exchanges.
Wednesday
General news:
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Itau Unibanco announces it will use quantum computing to further retrain customers and suggest tailored investments.
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Laura Corral, Sales Director for Latin America at Pinterest, states, “We are not interested in the metaverse; we want people to improve their lives in the real world.”
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SoftBank Group Corp. founder Masayoshi Son said the they will go on the offensive soon, ending more than a year of relative dormancy in startup investments. According to him, AI is bringing explosive change and they have to act now.
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CIVLAC’s AgroFoodTech challenge makes a final call for applications.
Startups that have a validated solution, make an impact on at least one Sustainable Development Goal, and have experience working with corporations can apply.
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Impacta VC launches its second program to help Latin American startups raise capital. The program starts on August 1st, with limited spots available and a selection process. This new Impacta Fundraising Strategy Program aims to double the impact of its previous edition.
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Ripple and Peersyst join Colombia’s Central Bank to drive blockchain technology in the country’s financial sector. The pilot program will be monitored by the government as part of the third phase of blockchain technology experimentation, led by the Ministry of Information Technologies and Communications.
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The new Automatic Pix will allow automatic recurring payments, with prior authorization from the paying user. The idea is that companies with different business models (digital or physical establishments) can receive periodic payments.
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Brazilian CloudWalk diversifies product portfolio, reaches break-even, and aims for IPO in 2025. Previously dependent on the InfinitePay payment device, the fintech has expanded its range of solutions to include cashback, loan grants, and automated billing. In the first quarter of this year, the unicorn achieved break-even, with revenues of R$ 149 million – a growth of 183% compared to the same period in 2022 – and a profit of R$ 54 million. Now, the company is targeting an IPO in 2025.
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Brazilian Banks and retailers are starting to use social media as one of the factors of credit score.
Deals:
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Media Hero, startup that operates as a Software as a Service (SaaS) company on a platform that can be accessed by CMOs, CEOs, and CFOs to guide investment decisions raised an undisclosed pre seed round with Lanx Capital and angel investors.
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Mexican healthtech company Clivi, specialized in diabetes care, raised USD $10 million. Clivi provides medical support to its users along with the necessary equipment for disease management, such as glucose meters, test strips, and blood testing kits, as well as required medications. The round was co-led by Dalus Capital and Foundation Capital, with participation from several other investors.
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Glitzi, Mexican beauty and wellness app, raises $2.8 million in its seed funding round. The startup has plans to venture into the beauty and personal care products market, which is valued at $50 billion in Latin America. The round was conducted by investors such as Goodwater, Y Combinator, Harvard Mgmt Seed capital and others.
Thursday
General news:
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Brazilian Fintech Monkey Exchange launches Ca.Co, a digital cash flow control solution that uses algorithms to revolutionize the way companies manage their finances. The potential cost reduction to companies can reach BRL 42.5 billion per year.
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Totvs and Itau Unibanco joint venture was approved by local authorities.
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Born in Silicon Valley, Flexi is seeking seed funding to grow in Brazil. The startup assists companies in optimizing customer service through social media platforms, particularly on WhatsApp.
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Rio de Janeiro has been recognized as the leading “emerging ecosystem” for startups in Latin America by the Global Startup Ecosystem Report 2023 ranking.
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PicPay has integrated Microsoft’s Azure OpenAI Service, along with the American startup behind ChatGPT, into its messaging service. Artificial intelligence has been implemented in its customer service channels to answer user queries regarding products and services, with information provided by the customer experience team.
Deals:
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Tarvos, an agtech specialized in agricultural pest management, received a funding of BRL 5 million to consolidate its growth plans. The seed round, led by ACE Ventures, Bossanova Investimentos, GVAngels, and Fundepar, aims to increase the number of customers and monitoring stations for the company.
Friday
General news:
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BR Angels has announced a new initiative for its investment thesis. The angel investor group is joining forces with Sebrae to invest in startups from the Entrepreneurial Capital program, with an expectation to invest approximately BRL 3 million in the selected startups within the program.
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iCred, a fintech based in Sergipe, Brazil, created to streamline access to credit and personal loans, is projecting to close 2023 with BRL 1 billion in new contracts. In just over a year of operation, iCred has already disbursed BRL 700 million to over 1 million customers, thanks to its simplified credit process.
Deals:
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Cannect attracts Supera as an investor in the medical cannabis thesis. With a new investment led by Supera, the company Cannect has raised over BRL 40 million in funding for its medical cannabis marketplace.
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Fintech VIPe, founded by former Bradesco partners, focused on credito consignado and financial education, raised BRL 110mm through equity with Airborne Ventures and debt (FIDC).
What did I learn from readers?
I saw a good report and a brief summary on G2D newsletter. As they are also my readers, I will share here with you today:
The Inter-American Development Bank (IDB) provides insight into the deep tech scenario with its new report: Deep Tech – The New Wave. Spanning 155 pages, the report presents indicators of key countries, profiles of leading companies, and identifies primary investors. Below you can find some highlights:
• Brazil has 101 deep tech startups (30% of the total), an ecosystem valued at $1.9 billion (23%), and has raised $441 million (20%). It is followed by Argentina, Chile, Costa Rica and then Mexico.
• Three companies are worth more than $500 million: Establishment Labs (Costa Rica, aesthetic medicine), NotCo (Chile, food), and Bioceres (Argentina, agriculture).
• Four Brazilian companies are valued between $100 million and $500 million: Voltz (electric bicycles), Speedbird Aero (drones), Kaiima (biotechnology), and Biotimize (biotechnology).
• “Over the next decade, our analysis shows there is room for a 20x increase in venture capital investments in deep tech companies in Latin America,” the report asserts. This would escalate from $172 million recorded in 2022, to $3.44 billion in 2032. “The number of startups and the value of the ecosystem can follow similar trajectories.” Brazil has the highest potential for ecosystem growth. It has 77% of the researchers and 58% of the patents, but only 33% of the startups. “This discrepancy can be partly attributed to the prevalent model in the country, focusing on the domestic market,” says the IDB. “But it’s easy to envision a solution to this problem.”
What am I reading?
Quote of the week:
“If you limit your choice to only what seems possible or reasonable, you disconnect yourself form what you truly want, and all that is left is a compromise.” ― Robert Fritz, The Path of Least Resistance: Learning to Become the Creative Force in Your Own Life
Originally published on my Substack.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
