LATAM VENTURE BULLETIN

A must-read roundup of startup deals and news on emerging technologies in Latin America, delivered to over 7,000 investors, entrepreneurs and corporates bi-weekly.

14 March 2024

The LatAm Venture Bulletin is produced by Carlos Ramos de la Vega, LAVCA’s Director of Venture Capital.

LAVCA Data Insight: Slow and Steady

A record number of early-stage startups are likely to begin fundraising in 2024 while investors focus on strengthening their current portfolio.

More than 1,700 companies have raised seed and early-stage VC funding in Latin America since 2019, according to LAVCA data. With longer times to close financing, founders may be faced with stark choices depending on the current health of their business – raise new sources of dilutive capital in a potential down round, turn to venture debt, pursue a sale process, or wind down operations.

LAVCA Members can log in to download the accompanying LAVCA Data Pack.

INVESTOR SPOTLIGHT

Is AI a Thing in Latin America? In Conversation with Hi Ventures

LAVCA sat down with Federico Antoni and Jimena Pardo of Hi Ventures to discuss their evolving thesis and vision for institutional investors considering increasing their exposure to AI in Latin America.

Hi Ventures: What is striking about the acceleration of AI is that it has hit all the world simultaneously. Unlike the Internet – where Latin America lagged behind in broadband infrastructure or smartphone penetration that took years longer to catch up – the same LLMs are available to founders and consumers in San Francisco, CDMX, Shanghai, São Paulo, Tel Aviv and Buenos Aires.

Deals

▸ DEBT | Baubap, a Mexican consumer lending platform, secured USD120m in debt financing from SixPoint Capital Management

▸ DST Global led a USD25m Series A for Yuno, a Colombian checkout platform for last-mile delivery startups, with participation from Tiger Global and follow-on from KASZEK, monashees and Andreessen Horowitz.

▸ Upload Ventures led a USD20m round for Topsort, a US-based advertising solutions platform, with follow-on from Quiet Capital and Pear Ventures.

▸ Marco Financial, a Miami-based lending platform for Latin American SMEs conducting international trade, raised a USD12m round from IDB Lab, Barn Investimentos, IDC Ventures and Florida Funders, with follow-on from Arcadia Funds.

▸ Bewater led a ~USD12m round for SkyOne, a Brazilian cloud computing platform.

▸ PROPTECH | Redpoint eventures and TM3 Capital led a USD10m round for Housi, a Brazilian property management startup, with participation from Açolab Ventures.

▸ Oikocredit led a USD10m equity and debt seed round for YoFio, a Mexican credit provider for MSMEs, with participation from 500 Global, Innogen Capital, G2 Fintech Fund, Cauris Finance and undisclosed angels.

▸ DEBT | Open Co, a Brazilian unsecured personal credit platform, raised ~USD10m in debt through a FIDC (Fundo de Investimentos em Direitos Creditorios) from Empírica Investimentos.

▸ IoT | Cometa led a USD8m round for Pulsar, a US-based manufacturing analytics platform for factories in the US and Mexico, with participation from Seaya Cathay Latam, Arca Ventures, and follow-on from Kayyak Ventures.

▸ Smartbeemo, a Colombian e-commerce know-how education platform, raised a USD6m equity and debt round with participation from Impact Ventures PSM, RGMA Holdings de Multifamily EPC, Angelhub, and follow-on from Redwood Ventures, New Ventures and Simma Capital.

▸ CLEANTECH | Vox Capital and Copel Ventures led aUSD5.3m Series A for Nextron Energia, a Brazilian renewable energy credits marketplace.

▸ Colmeia, a Brazilian digital service automation startup, raised ~USD5m from Crescera Capital.

▸ Fintual, a Chilean robo-advisor and asset management platform, raised a USD4.2m follow-on round from Sequoia, KASZEK and Hi Ventures.

▸ 4Equity invested ~USD4m in FinanZero, a Brazilian consumer marketplace.

▸ INSURTECH | Sostengo, an El Salvador-based insurtech, raised a USD3.8m seed round from PeopleFund.

▸ WEB3 | Kravata, a Colombian Web3 integration platform, raised USD3.6m from Volt Capital, Framework Ventures, Circle Ventures, Magma Partners, SIMMA Capital and others.

▸ AGTECH | iDEXO, the CVC arm of TOTVS, led a ~USD3.4m Series A+ for Cromai, a Brazilian computer vision platform for monitoring crop nutrition levels, with participation from Baraúna VC and Citrino Ventures.

▸ Picus Capital and 468 Capital led a USD3.3m seed round for Niko, a Mexico City-based solar installation startup.

▸ WOMEN-LED | Hi Ventures led a USD2.75m seed round for Atlas, a San Francisco-based remote work benefits platform.

▸ DGF Investimentos led a ~USD2.4m round for Visio.ai, a Brazilian franchise management platform, with participation from Alexia Ventures and Scale-Up Ventures.

▸ Canary led a USD2.1m round for Darwin AI, a Brazil-based conversational AI assistant, with participation from Dalus Capital, H20 Capital, FJ Labs and Latitud.

▸ HRTECH | Indicator Capital led a ~USD2m round for Neowrk, a Brazilian workspace management startup.

▸ CLEANTECH | EDP Ventures invested USD2m in Splight, a Chilean renewable energy management startup.

▸ AGTECH | BemAgro, a Brazilian crop management startup, raised a USD2m pre-Series A from CNH Industrial, Rural Ventures, MMAgro and Agroven.

▸ AGTECH | A de Agro, a Brazilian data analytics platform for agribusiness, raised a ~USD2m round from undisclosed investors.

▸ HEALTHTECH | Taram Capital led a USD1.7m seed extension for Keiron, a Mexican patient management platform for healthcare centers, with participation from Consorcio, Nakama Ventures and follow-on from LarrainVial Asset Management.

▸ SECURITY | Bossa Invest and Invisto.com led a ~USD1.4m round for Bluecyber, a Brazilian cybersecurity insurance startup.

▸ Redpoint eventures led a USD1.2m round for StopClub, a Brazilian security and financial solutions platform for gig workers, with participation from Raio Capital.

▸ EDTECH | Iron Capital led a ~USD800k round for Analytica Ensino, a Brazilian education technology startup.

▸ HRTECH | Potencia Ventures led a ~USD380k pre-seed round for Trampay, a Brazilian payroll management platform for ride-sharing and last-mile delivery workers, with follow-on from Cedro Capital.

▸ Finplace, a Brazilian credit financing platform for SMEs, raised ~USD250k in crowdfunding with follow-on from DSK Capital.

▸ DOMO led a ~USD200k round for Copybase, a Brazilian content creation startup for marketing teams.

▸ DOMO led a ~USD160k round for Pilea Labs, a Brazilian influencer mapping startup, with participation from WOW Aceleradora, and angels Marcia Netto (Sallve) and Andre Popoutchi (Dr. Jones).

▸ DEBT | Partners for Growth invested in SimpliRoute, a Chilean logistics intelligence platform.

▸ LEGALTECH | BDEV Ventures invested in Tally, a Mexican legal incorporation platform for startups.

▸ ANGEL | WIM Angels invested in Beorange, a Brazilian administrative intelligence startup.

▸ ANGEL | Anjos do Brasil invested in Grana Capital, a Brazilian tax management platform for stock exchange-driven capital gains.

Funds

▸ IMPACT | IDB Invest committed USD5m to Good Karma Impact Fund, Good Karma Partners’ second flagship fund with a ~USD88m target to invest in early- and growth- stage healthtech, edtech and climate startups.

▸ Amarena, the VC arm of the Angelini FO, announced an additional USD15m capital commitment from Patricia Angelini.

▸ IMPACT | Vox Capital launched its fourth flagship fund with a ~USD40m target to invest in early-stage companies with a socioeconomic or environmental impact.

▸ IMPACT | Atta Impact launched Mesoamerican Catalytic Fund I (MCFI), its inaugural fund to make equity and quasi-equity investments in impact-driven companies in Central America and Southern Mexico.

▸ WOMEN-LED | EMA Ventures launched its inaugural fund to invest in women-led startups in Spanish-speaking Latin America.

News and M&A

▸ CLOUD | AWS announced a USD5b infrastructure investment to open a cluster of data centers in Mexico.

▸ M&A | Brazilian Banco Master acquired a majority stake in digital bank Will Bank.

▸ M&A | Ziff, a Mexican financial solutions provider, acquired Arrenda, a Mexican lending platform providing rent advances for residential landlords.

▸ M&A | Cuida Mi Mascota, a Mexican petcare products platform, acquired Tu Mejor Amigo, a Mexican vet and ancillary service platform for dogs.

▸ Favo, a Peruvian grocery fulfillment platform leveraging local sales reps to market products for last-mile distribution, is shutting down due to financial and scaling headwinds.

▸ CLIMATE | WEF highlights the role of Argentines Kilimo and Nilus and Chilean Algramo in developing solutions to improve the state of the climate crisis and food insecurity in Latin America in its article, From forest schools to greywater recycling – these start-ups are powering a green revolution across Latin America.

People & Programs

▸ GPCA will hostGPC Conference in partnership with IFC in New York City on 25-27 March. Registration is now open.

▸ DEI | IDB Lab partnered with Diversity VC to launch Diversity in VC, a new initiative to review and implement DEI strategies for the venture community in Latin America.

▸ Congrats to the five new startups selected to participate in Endeavor Argentina’s Scale-Up Program: Koibanx, Tapi, Janis, Workia and The Flock.

▸ The 4th edition of the VC LatAm Summit will be hosted in Miami on 16-17 April. Registration is now open.

▸ Antler will host the fourth edition of its founder residency program in Brazil starting on 25 March.

Global Tech

▸ Sign up for GPCA’s Global Tech Brief, a monthly newsletter that covers tech activity in Asia, Latin America, Africa, CEE and the Middle East.

LAVCA is now part of GPCA, the Global Private Capital Association, and will continue to operate as a parallel membership organization with its own dedicated team and board.