LatAm Venture Bulletin |
Since the C19 pandemic began, Tech Growth Coalition members have stepped up with relief efforts in Latin America and globally, through a combination of capital-infused initiatives (including grants and donations), strategic partnerships, and lending tech infrastructure support. Read about direct response efforts in-region and globally from AWS, Facebook, Globant, Google, KIO Networks, Mercado Libre, Movile, Microsoft, Qualcomm Ventures, Riverwood Capital, SoftBank, SVB, and Visa here.
Several members of the Latin American Tech Growth Coalition, including Riverwood Capital, SoftBank and SVB, are supporting CONECTADOS, a solidarity initiative in the LatAm tech community that connects companies and their employees with enabling organizations to support the Red Cross and healthcare workers.
German Dyzenchauz, CEO of GOIntegro, whose technology is powering a one-step donation process, shares: “The main challenge was to coordinate the initiative with the Red Cross in Argentina, Brazil and Mexico. Each Red Cross office manages their own operations, so we worked with three different teams coordinating everything.â€
GOIntegro launched the campaign to its more than 300 corporate clients in these markets.
Companies interested in supporting CONECTADOS can email conectados@gointegro.com. |
| > Tembici, a Brazilian micro-mobility platform focused on bikes, raised a US$47m Series B led by Valor Capital and Redpoint eventures, and with participation from IFC and Joá Investimentos.
Tembici caters to both couriers and commuters, and is logging 2 million monthly rides on its platform. CEO Tomas Martins shares: "Bicycles will undoubtedly play an important role in the post-pandemic world…. As more people change their habits, the new investment will help us meet the increasing demand." > Cortex, a Brazilian SaaS marketing and sales platform, raised a US$22m Series B led by SoftBank’s Latin America Fund, with participation from Redpoint eventures and Endeavor Catalyst. > Belvo, a Mexican fintech providing a financial services API for mobile applications, raised a US$10m round led by KaszeK Ventures and Founders Fund. MAYA Capital, Venture Friends, and Nubank CEO David Velez followed on in the round. Read below for our interview with Co-Founder Pablo Viguera.
> Accountfy, a Brazilian B2B financial planning platform, raised a U$6.5m round from Redpoint eventures and Chilean insurance conglomerate HDI Seguros.
> #CVC a55, a Brazilian revenue-based lender focused on small businesses in Brazil and Mexico, raised a US$5m Series A led by Santander Innoventures, and plans to broaden into new credit offerings. The company raised US$3m previously from unnamed investors.
a55 shares: "We have passed US$30m in cumulative credit booked…Despite the coronavirus, our NPL rate has been reduced by 50% and is now below 3%." > Meu Tudo, a Brazilian marketplace focused on payroll lending, raised R$12m from DOMO Invest.
> Mati, a Mexico-based identity verification technology provider, raised an undisclosed investment from Omidyar-backed Spero Ventures.
Spero Ventures was spun out from Omidyar Network in 2019 with US$100m in commitments to invest across verticals such as wellbeing and the future of work. Mati aims to provide an effective solution to the prevalent payment fraud problem in Latin America. > Hent, a Brazilian property rental management platform, raised R$5m from Canary.
Hent was one of seven Brazilian startups to participate in YC’s W20 batch. The company is founded by Leonardo Pinho, co-founder of Kaplen (sold to Itaú), David Aragao, Partner at Motonow (sold to Loggi), and Thiago Diniz, co-founder of Eventick (sold to Sympla). > LogComex, a Brazilian international trade management platform, raised R$3m from Caravela Capital and Invest Tech. LogComex focuses on providing logistics intelligence and traceability to more than 350 clients across four continents.
> Celero, a Brazilian corporate finance automation platform, raised an undisclosed round from Honey Island Capital (formerly Hi Capital), a seed investment firm established by EBANX co-founders.
> Cyklo, a Brazilian agribusiness accelerator, raised an undisclosed amount from consultant firm Alvarez & Marsal. Cyklo is the first accelerator focused on agribusiness in the Matopiba region.
> #AUSTRALIA Latam Autos, a Mexican online auto classifieds platform focused on Latin America, delisted from the Australian Stock Exchange and raised US$3.5m from an unnamed Australian fund.
> #ANGEL Digibee, an e-commerce digital integration manager for small businesses, raised a US$5m round led by GAA Investments with participation from Laércio Albuquerque of Cisco Brazil.
> VC investment in Latin American startups has quadrupled since 2016 to a record US$4.6b in 2019, according to LAVCA data. |
| > Stone Pagamentos acquired Vitta, a Brazilian telemedicine and health benefits startup, for an undisclosed amount. The acquisition will allow Stone to include healthcare solutions as part of its financial services offerings.
> XP acquired a majority stake in Brazilian personal finance automation platform Fliper for an undisclosed amount. The acquisition is part of XP’s vision for its users to consolidate the investment activity they currently execute on different XP-owned brands under one single platform.
> Brazilian retail brand operator Via Varejo acquired AirFox, a Brazilian microloan provider, for an undisclosed amount.
> Gorila, a Brazilian customer satisfaction research platform backed by monashees, Canary, and Iporanga Investimentos, merged with Reviewr, an online review management startup, to form Harmo Feedback Intelligence.
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| > #IMPACT Blue Like an Orange Sustainable Capital reached a US$200m+ final close for its first Latin America fund. The fund has a co-financing agreement with IDB Invest and counts over 25 limited partners, including AXA, HSBC, CNP Assurances, BNP Paribas Cardif, SG Insurance, MACSF, and several family offices. The Latin America portfolio includes Cabify.
> SoftBank announced a US$100m Opportunity Growth Fund dedicated to startups with minority founders. It’s a drop in the bucket for SoftBank, but a significant allocation for a dedicated fund for minority founders.
SoftBank’s global CEO Marcelo Claure and Shu Nyatta, Managing Partner of the Latin America Fund, will lead the fund. Fortune: A portion of the gains from the fund’s investments will be donated to organizations “focused on creating opportunities for people of color,†while half of gains will be reinvested into subsequent Opportunity Growth Funds. > #CVC Companhia Siderúrgica Nacional, the largest steel producer in Latin America based in Brazil, launched CSN Inova Ventures, a R$30m CVC vehicle to invest in initiatives aligned with CSN’s core business. CSN Inova Ventures will invest from R$2m to R$5m per company. > Patrick Arippol, former Managing Director and current Venture Partner at DGF Investimentos, co-founded Alexia Ventures, a new Brazilian early-stage fund. More to come. |
| > LAVCA welcomes Capria Ventures, a global investment firm leading, partnering with, and funding a network of emerging market fund managers collaborating to deliver superior returns and scaled impact. Investment focus: Taking LP positions (plus some GP stakes and some co-investments) with local VC and early-growth PE fund managers investing in tech-driven resilient businesses. LP Portfolio includes: Three funds in LatAm: Adobe Capital (Mexico), Fen Ventures (Chile), SP Ventures (Brazil); plus three managers in Asia (India and Singapore). Key contacts: Will Poole (Co-Founder & Managing Partner), and Susana Garcia-Robles (Venture Partner). > LAVCA publishes an annual directory of VC/Tech members, with profiles on 75+ firms active in Latin America. |
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Belvo is a Mexican fintech providing a financial services API for mobile applications that just raised US$10m led by KaszeK Ventures and Founders Fund to expand its product offering in Mexico and Colombia, and triple its current staff across in its dual headquarters, Mexico City and Barcelona. Co-Founder Pablo Viguera, an alum of European-based peer-to-peer lending platform Verse and mobile banking startup Revolut, shares:
What learnings do you bring to Belvo from your experience with Verse and Revolut?
At Verse we battled with a lot of the same tech issues that our clients face today and built out infrastructure from scratch. As a result, we have significant domain expertise in building out finance and fintech infrastructure at scale. During my time at Revolut, we saw the impact that the Payment Service Directive 2 and Open Banking regulations had in Europe and the United Kingdom, as well as the possibilities it created for new and innovative fintech players. These are the same infrastructure and regulatory challenges and opportunities that we are trying to solve in Latin America.
Can you share with us any insights on how is Belvo navigating the current C19 crisis?
Our focus for the past couple of months has been on building product and being close to our customers. For the long term, we believe the same thesis holds from pre-COVID, in spite of the correction that will happen across the board over the next couple of quarters. We see that COVID19 will be a key driver of structural shift as it relates to digitally advancing industries.
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| > iFood is allocating R$25m for health benefits for their delivery partners amidst the current crisis. The effort includes the launch of Fundo Solidário, an initiative to offer financial assistance to couriers who show C19 symptoms.
iFood separately allocated R$100m to support partner restaurants in its network through accelerated receipt processing. > Nubank launched a donation-matching portal as part of its platform where users can support Action Aid, Citizenship Action, the Brazilian Red Cross, and Hospital das ClÃnicas in São Paulo.
Nubank also announced a R$20m fund to assist customers with mental health services and credit to purchase essential goods amid the C19 crisis. > Mexican payments startups Clip launched #SeguimosJuntoATi, an initiative to support small businesses that includes a 20% discount on the Pro version of its card readers, and a 2x increase in profits for its partners when offering prepaid phone plans.
> Kavak, a Mexican marketplace for used cars, is issuing secured loans in an attempt to support car owners’ liquidity needs while still maintaining their transportation options during the C19 crisis.
> PedidosYa, an Uruguayan last-mile delivery marketplace, launched its first dark grocery store, a cashier-less warehouse facility, to reduce delivery times from one hour to 20 minutes in Montevideo. The platform was acquired by Delivery Hero in 2014.
> Peiky, a Colombian sales management tool for social media platforms, partnered with Mexican early stage investor G2 Momentum Capital to explore strategies for the company’s expansion in Mexico. > Mexican consumer lending platform Kueski announced its team will be primarily working remotely on a permanent basis, citing a significant increase in productivity. The company will still keep a physical office for employees who wish to continue working from its premises.
> Brex discharged 62 employees, representing ~13% of its total workforce, as part of its restructuring initiative amid the current crisis. Brex just raised a US$150m Series C extension from existing investors DST Global, Lone Pine Capital, and others.
> Mi Dulce Hogar, a Mexican domestic service marketplace, now includes disinfecting services as part of its offerings in Guadalajara and Mexico City.
> Brazilian steel producer Gerdau partnered with modular construction startup Brasil ao Cubo to build two hospitals in São Paulo and Porto Alegre in ~35 days.
> STARTUPS: How are you responding to the coronavirus pandemic? Share your updates by filling out this form. > Check out LAVCA’s directory of 331 Latin American startups with at least US$1m in VC funding, verified by LAVCA (as of end-2018), our Unicorn Leaderboard, and our Inaugural Survey of Latin American Startups. |
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| > #POLICY Chile’s Fiscalia Nacional Autonoma approved Uber’s purchase of Cornershop’s Chilean subsidiary as part of its US$450m offer to acquire a 51% stake in the food delivery company.
Mexican COFECE was granted jurisdiction to review the acquisition of the Mexican subsidiary in May, but a timetable for a resolution has not been disclosed. The deal is set to expire in July. Urlick Noel, President of the Mexican Entrepreneurs Association (ASEM), shares his view on the importance of shortening regulatory timeframes for transaction approvals to avoid causing financial hardship to high-growth companies. > Uber launched a R$32m fund to support one million drivers and couriers in Brazil, out of which R$7m will be destined to subsidize travels for blood donors and health professionals.
> Mercado Libre announced it will be hiring 5,000 employees throughout the rest of the year to focus on the significant increase in e-commerce demand, with plans for ~45% of them to be based in Brazil, 25% in Argentina, and 25% in Mexico.
> Qualcomm’s Wireless Reach Initiative is partnering with MTM Tecnologia and ClearTech to launch Sange Verde e Amarelo, a free platform for blood donations in Brazil to counter blood bank shortages due to the C19 crisis. > Google for Startups Director Andre Barrence presented Google’s predictions on the biggest future business opportunities in Brazil fueled by the current C19 crisis during the Brazil at Silicon Valley conference. Barrence shares: "Be cautious: consumer behavior is still changing, as the pandemic has yet to end. But also take the opportunity to retain this growth in research and turn it into sales. Prioritize customer loyalty acquired in the pandemic, through a good experience and a good brand positioning." > Google launched new programs and resources in Spanish in its Google Developers YouTube Channel as part of its effort to continue supporting the Google for Startups community.
> The IDB issued a US$150m loan to support small businesses in Panama during the C19 crisis. The initiative will primarily focus on businesses in the food security and agriculture sectors, and resources will be managed by the Banco Nacional de Panama.
> Santander, Galicia, and BBVA partnered to launch PlayDigital, a new digital payments platform to facilitate e-commerce payments and money transfers between them in an effort to compete with Mercado Pago. PlayDigital is led by Rafael Soto, Ualá’s former CEO and Nubank’s former CFO.
> Brazilian imaging processing platforms Airspace and Geo-X partnered with the US Department of Defense to launch All-Clear, a drone-based platform aimed at detecting masks, social distance, and body temperature from a distance.
> #POLICY The Colombian Ministry of Technology and Communications is assembling a committee of veteran entrepreneurs and operators to advise on strategies to strengthen Colombia’s startup ecosystem. The committee has already confirmed participation from the founders of Rappi, ADDI, Frubana, and BlackSip. > NYT looks at the dangerous increase in illegal deforestation happening in Brazil as law enforcement continues to focus on managing the C19 pandemic.
> Archeologists and researchers found a 3,000 years old Mayan ceremonial complex in Mexico using Light Detection and Ranging (LiDAR) technology. According to experts, the construction was hiding in plain sight and is now the oldest and largest structure ever discovered in the Mayan region. > FT: Ethiopia steps in to deliver respirators to Latin Americans: “Ethiopia has emerged as a key transit hub for the shipment of much sought-after medical equipment to Latin America, as poorer countries complain they are being muscled out of the market by richer nations and their cargo seized during refueling stops in Europe and the US.†|
| PEOPLE & PROGRAMS > New Ventures and IKEA Social Entrepreneurship are launching an accelerator program to support 20 social entrepreneurs focused on improving the quality of life of Mexican marginalized communities. The program intends to help founders optimize for social impact and partner with corporates across the country. Interested founders are welcome to pre-register. > Brazil’s Natura Cosmeticos partnered with startup accelerator B2Mamy to launch NosJuntos, an initiative focused on providing mentorship and partnership opportunities to social impact businesses founded by Brazilian women. Applications close June 10. > WOW Aceleradora is accepting applications for Batch #17, focusing on early and growth stage companies in Brazil. Applications close June 12.
> ACV, VC Academy, and Innova360 will host The Future of Retail After Covid with participation from Kaszek Ventures, CB4 Analytics, Hanaco Ventures, and Jungle Ventures on June 17. Register here.
> Women’s Startup Lab will host WiSE24, a global conference for investors and founders, on June 18.
> MAYA Capital will host its second Pitch Competition for undergraduate and graduate students in Brazil building companies focused in Latin America. The event’s goal is for young founders to familiarize themselves with the fundraising process and get early exposure to regional investors. Applications are due on June 21.
> Cemex Ventures launched Construction Startup Competition 2020, a platform for startups in the construction sector to have a chance to win access to mentorship and capital for their businesses. Applications close July 26. > Investors from MAYA Capital, Canary, Astella, Innova Capital, Positive Ventures, Wayra, Google, 500 Startups, and others are offering free mentoring for female entrepreneurs through Female Force LATAM. |
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