LatAm Tech Weekly: Slight Setback in Funding of Startup Ecosystem

And I am (almost) back! As vacations come to an end, I realize how important it is to rest, but also how I miss my daily routine.

For those who don’t know, I have a Twitter account dedicated to daily updates from the tech ecosystem. I do continue posting there even when I am off for vacations, therefore today I decided to share with you here what I posted last week, and also provide a brief overview of what is happening in tech MTD in the region. Hope you like it!

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Partial data for July suggests a slight setback in the funding of the startup ecosystem in Latin America, following a recovery in June, according to monitoring by Sling Hub, data platform for the startup ecosystem in Latin America.

On the other hand, the month has already marked a milestone: the investment of US$ 62.6 million (R$ 300 million) in Superbac Biotechnology Solutions, in a round led by XP Asset Management. It was the largest investment ever in a biotech in Latin America.

Another highlight of the period was the funding round for the Brazilian logistics tech company, Cobli, which received US$ 20.7 million, the most significant funding for a logistics tech company in the country since March 2022, when Gringo received US$ 36 million.

See below for more highlights from the partial balance of July startup funding:

IN LATIN AMERICA

• Between 7/1/2023 and 7/15/2023, 44 startups raised US$ 327.3 million.

• During the same period of the previous month, the investment balance was US$ 401 million. The partial data for July places the month, thus far, slightly below the average monthly funding in the first semester, which was US$ 404.3 million.

• The largest funding rounds during this period were:

  • Superbac Biotechnology Solutions, a Brazilian biotech, raised US$ 62,633,100 in a round led by XP Asset Management – this was the largest ever investment in a Latin American biotech.

  • Talisis, a Mexican edtech, raised US$ 55,477,150 in a seed round.

  • dMX, a Mexican fintech, raised US$ 50 million in a round led by the International Finance Corporation.

• Other data:

  • The average ticket size for investments in the region: US$ 14.2 million.

  • Sectors that raised the most: fintech (30%), biotech (19%) and edtech (18%).

  • Countries whose startups received the most funding: Brazil (US$ 146.4 million in 15 rounds), Mexico (US$ 125.4 million in 3 rounds) and Argentina (US$ 35 million in 1 round).

IN BRAZIL:

• 15 startups received US$ 146.4 million, accounting for 45% of the total in Latin America.

• Other data:

  • The average ticket size for investments in Brazil during this period: US$ 10.4 million.

  • Sectors that raised the most: biotech (43%), fintech (17%) and autotech (14%). 

Monday

• Uruguayan company dLocal received approval to operate as a Payment Institution in Brazil. The institution is established with a share capital of BRL 36 million and is authorized as an electronic money issuer and payment transaction initiator.

• Startups create association to strengthen the plant-based market in Brazil.

  NotCo, NUDE, Positive Company, and Vida Veg have joined forces to create Base Planta, an association aimed at strengthening the segment and optimizing the industry's fiscal structure in the country.

• Meetz acquired AZ Labs and aims for a revenue of BRL 20 million.

  B2B prospecting startup invests in portfolio expansion by acquiring a sales intelligence platform.

• Galeria Agency, founded by former executives of DPZ&T, part of the Publicis group, stands out in the advertising market. In less than a year and a half, they have moved over BRL 1.2 billion in media buying. The agency has quadrupled in size and projects to reach approximately BRL 1.5 billion in media transactions in 2023.

Tuesday

• Conexa, Seguros Unimed's partner platform for online consultations, currently maintains a 95% resolution rate for the insurance company.

• Enjoei announced the acquisition of all issued shares of J.Q.A.S.P.E. Empreendimentos e Participações, the company that holds all issued shares of Elo7 (Elo7 Group).

• Google for Startups has just announced 13 new companies selected by the Black Founders Fund. With a fund of BRL 16 million, the initiative aims to support startups founded or led by Black individuals in Brazil by investing financial resources without equity or ownership requirements.

• WohPag, a fintech for condominiums, expects to process R$ 300 million in transactions this year. In the previous year, the fintech processed BRL 150 million, a volume that is expected to double to BRL 300 million this year. Looking ahead to 2024, the projection is for an even greater leap, reaching a total of BRL 4 billion in transactions.

• Positivo Tecnologia, through its Investment Fund (FIP), has made a R$ 32 million investment in Earth Renewable Technologies (ERT), a startup focused on the production of plastics based on biopolymers. Since 2021, ERT has been operating in Brazil and already stands as the largest company in the compostable bioplastic sector in Latin America.

Wednesday 

• The GrowinCo, a product outsourcing platform, has received a funding of BRL 3.6 million co-led by GVAngels, an angel investor network formed by FGV alumni, and Harvard Angels, a network of current and former students from the American university. Urca Angels also participated in the funding round.

Thursday

• Hiperfy, a platform that connects content creators with companies looking to promote their products and services, arrives to create the perfect 'match' between influencers and businesses. The new venture by Guilherme Brunhole, former CEO of UAUBox, aims to generate revenue of BRL 4 million in its first year of operation.

• Oxygea, a corporate venture capital (CVC) and venture building vehicle of Braskem, continues to make announcements about its future plans. Now, the company has partnered with the American firm Touchdown Ventures to co-manage its fund dedicated to global startups, which has $100 million in its account.

• Microsoft and Maybelline join forces to add makeup filters to Teams calls. Through artificial intelligence, users can utilize 12 different filters that best suit their style.

• Energytech VoltBras, which offers management and payment solutions for electric vehicle charging stations, has completed its Series A funding round in the amount of BRL 12 million. The investment was led by the MSW Capital management company.

• Sinqia board has accepted a purchase offer that values the financial software company at BRL 2.5 billion. The offer, for 100% of the company's capital, was made by Evertec, a company listed on the New York Stock Exchange and headquartered in Puerto Rico.

Friday

• Positivo Tecnologia, a hardware and services technology provider, is the newest shareholder of WE Ventures, the first 100% female-led CVC fund in Latin America. The company is investing BRL 3.6 million in its first contribution to the fund.

• Deal invests BRL 4 million and launches martech Alot.

  The IT integrator decided to spin off its marketing vertical, combining consulting and technology into a new startup.

• An updated list published by the Central Bank (BC) this week shows that there are 73 players in the process of joining Pix. The majority operate as payment institutions (PI), but the list also includes commercial and multiple banks, financial companies, cooperatives, as well as Direct Credit Companies (SCD) and brokerage firms. 

Some other pieces of news and cool stuff:

• Fintech NG.Cash for generation Z, enters crypto-analysis in Brazil through a partnership with Parfin.

• This week’s Clouded Judgement by Jamin Ball was a great read which I recommend. Below an interesting set of graphs:

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.

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