LatAm Tech Weekly
#142- Powered by Nasdaq: Busy week for events, Venture figures in May, deals of the week... and much more!
Happy Sunday!
I'm writing from São Paulo, where the weather has been all over the place—I've experienced both a cold snap (hence my current sore throat) and a heatwave in the same day. This past week has been a real mix in terms of weather... Anyway, on to what really matters—the upcoming week is packed with events. In Rio de Janeiro, the FII PRIORITY is happening from June 11-13. It's the first edition in Latin America, and the theme is "Investing with Dignity." In São Paulo, Volpe is hosting a Tech Breakfast, Cubo has its VC Vision event, ABVCAP is holding its Venture Day, and there’s so much more! I won't be attending all of them personally, but you know I have eyes and ears everywhere. Next week, I'll share a summary of everything that went down at these events. Stay tuned!
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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.
As time flies by, we’re already at mid-year and Q2 is almost over. Before we dive into those numbers, let's take a look at May's figures for the tech sector in the region. According to Sling Hub's data, May showed an upward trend. Starting with Brazilian fintech CloudWalk, which raised $308 million in receivables funds, marking the largest round of the year. This outpaced notable rounds by the energytech Solfácil, which raised $121.2 million (also through receivables funds), and the fintech Baubap, which secured $120 million in debt, making them the top three of 2024 so far.
CloudWalk's round significantly boosted investment volumes for May in Latin America and Brazil, reaching $847 million and $548 million, respectively. Both the region and the country saw increases in volume MoM and YoY. Compared to May 2023, the funding volume surged by 179% in Latin America and 259% in Brazil.
It's worth noting that when focusing solely on equity rounds, the funds raised amounted to $264 million in Latin America and $167 million in Brazil, still reflecting YoY growth of 23% and 38%, respectively.
On the flip side, the number of funding rounds slightly decreased, with 77 in Latin America and 48 in Brazil, representing a 12% and 9% YoY decline. Additionally, the median round size in Brazil dropped to $1.2 million in May, down 60% from $2.9 million in April, but still 145% higher YoY.
On the M&A front, there were 21 acquisitions, marking a 40% increase from April, which had 12 transactions. Among these, 13 acquisitions involved Brazilian companies, consistent with the number in April.
Countries such as the Netherlands, Spain, and South Africa were also active in acquisitions within the region. Similar to April, there were no mergers recorded.
General news:
eB Capital, Brazilian PE firm, signs an agreement with Saudi Arabia for private investments. The agreement stipulates that eB Capital and MISA will facilitate a series of meetings and business rounds to bring together private investors from Brazil and Saudi Arabia to discuss opportunities, with an emphasis on alternative investments, climate, food security, private equity, and private credit.
Brazilian Positivo integrates Algar Tech MSP, envisions "one-stop shop" for IT infrastructure. The company projects that the revenue from its IT services and solutions unit will increase from 8% to 18% of total revenue by 2024.
Ualá COO Mariana Franza will depart the Latin American fintech. Mariana Franza, a former Goldman Sachs banker who has served as chief operating officer of Argentine fintech Ualá for the past three years, did not comment.
Brazilian Budz, a newly created startup, leverages artificial intelligence to assist dog owners with training their pets. In its pilot project, the startup operates through an app, providing users with information on applying techniques and tips on pet care. By the end of the year, the goal is to reach 250,000 users, with 10% of them subscribing to the service.
Shein prepares for a possible IPO in the UK, according to sources. The Chinese company aims for an offering that values it at around £50 billion, potentially making it one of the largest IPOs in the history of the London Stock Exchange.
Incentiv, a Brazilian ecosystem of solutions connecting companies, individuals, and socio-environmental projects through tax incentive laws, has been selected for acceleration through the Turistech Hub Brasil program. The project allocated R$ 50,000 to Incentiv to conduct a proof of concept and help boost Brazilian tourism through technology.
Deals:
SYN, developer of a healthcare platform intended to democratize access to medical procedure raised $1,5M in Early Stage VC funding.
General news:
Pix boosted payment transactions in the country in 2023. Card transactions also grew, but at a slower pace. Meanwhile, operations with bills and interbank transfers decreased during the period. These trends are reflected in the Retail Payments and Cards Statistics in Brazil, published by the Brazilian Central Bank this week.
Microsoft is once again downsizing its team. This time, hundreds of employees from its Azure cloud computing unit have been laid off, sources familiar with the layoffs told Business Insider. In the Azure for Operators division alone, the cuts are expected to impact 1,500 employees.
Vivo brings former Valor Capital executive to lead VC strategies. Phillip Trauer will take over Wayra and Vivo Ventures. Go Phil!!
The chip renewal cycle will now be annual instead of every two years, says Nvidia. Nvidia's stock hit an all-time high after CEO Jensen Huang announced a robust pipeline of deliveries for the coming quarters, including a new generation of GPUs.
Cisco launches $1 bln AI fund and makes its first investments. Cisco on launched a $1 billion fund to invest in artificial intelligence startups, joining a list of big technology companies rushing to take stakes in small AI firms.
TikTok cuts operations and marketing team in Brazil as part of global decision. The reduction also affected content and partnerships areas, according to affected professionals on LinkedIn. TikTok has not responded to requests for comment.
Influencer Uana Amorim joins Nuvemshop as a new partner. The entrepreneur will contribute strategic content for social media and assist in product development.
Independent manager with around R$ 3 billion in assets under management, Trígono Capital, is expanding its portfolio of private credit products. The new Trígono Sirius FIC FIRF LP fund invests in banking and corporate securities across various sectors of the economy. The focus is on the high-grade segment, targeting the highest quality and most liquid credit securities.
Deals:
Databricks Inc., a closely held software company, agreed to acquire startup Tabular as part of an effort to broaden its capabilities and help customers take advantage of artificial intelligence. Databricks, declined to say how much it paid for Tabular, which makes data management software. The Wall Street Journal, which reported the deal earlier, put the price at $1 billion to $2 billion.
Banco BS2 to invest up to R$ 65M in Edtech Somos Young. Through the edtech, the bank aims to enhance access to educational institutions by providing working capital solutions, receivables anticipation, and payment services.
Long-standing dream of medicine: AI recommends the best treatment for cancer patients. Healthtech Valar Labs received a $22 million investment to expand the capabilities of its artificial intelligence platform, Vesta, to other types of cancer beyond bladder cancer.
General news:
A recent study by EY predicts IPO resurgence in Brazil in the second half of the year. According to a global EY survey, the number of IPOs decreased in the first quarter, but revenue increased by 7%, from $22.1 billion to $23.7 billion.
Charlie, a Proptech with R$ 2 Billion in AUM, targets corporations and extended stays. Charlie’s business model includes managing apartments that come fully furnished, with complete linens and cleaning services.
Sólides appoints Juliana Tubino as Board Advisor. The executive will work on optimizing and expanding the HRTech ecosystem, supporting the growth of operations.
Deals:
Kanastra has successfully raised R$ 110 million in a Series A funding round. The investment was led by KASZEK, with participation from Atlantico, Valor Capital Group, Quona Capital, QED Investors, and Actyus.
The marketplace for used sports equipment, Semexe, has secured a R$ 4 million investment from Hiker Ventures. The funds will be used to expand Loopify, the group's re-commerce platform that provides circular economy solutions to other retail companies. This funding round aligns with AF Invest's strategy of investing in startups that offer value to large companies and have acquisition potential.
The registrar Cerc has acquired a majority stake in the receivables trading platform Antecipa, which was invested in by XP in 2020. This is the company's first acquisition, and the transaction value has not been disclosed. XP remains a minority shareholder.
General News:
As a result of the recent integration of four operations, Vindi is the new financial services arm of LWSA (Locaweb). The focus is to go beyond payments and advance in areas such as credit and digital accounts.
Alura Para Empresas, which encompasses the corporate solutions of Alura, announces Anna Villar, who has previously worked at Microsoft and Samsung, as the new Director of B2B Marketing. The executive joins with the mission to expand the company's B2B ecosystem.
Livelo announces partnership with Genial for “points transfer.” Each gCoin transferred from Genial equals 25 Livelo points, which will be credited within five business days. There is no minimum transfer threshold.
Fitness Startup Mobility Flow Grows with Online Class Offerings. The company, founded by athlete Yuri Carvalho and physical educator Thiago Sahtler, aims to reach 3,000 subscribers by the end of the year.
Instacart announced a new $500 million share repurchase program, the third round of buybacks the grocery delivery company has authorized since September as it seeks to boost confidence in its growth potential.
Bossa Invest calls investors for its third fintech pool. The goal is to raise up to R$ 20 million to invest in at least 10 companies, including follow-ons and new financial startups.
Human Robotics, a pioneering Brazilian startup in the development of self-service and telepresence robots, has just announced the launch of its latest innovations. With impressive growth in recent years, the company reported a revenue of R$ 1.2 million last year and projects to reach R$ 4.8 million this year.
Peruvian startup Artificio is developing a benchmarking platform for autonomous driving in Lima’s notorious traffic, addressing one of the industry’s toughest challenges.
General News:
The Temu website in Brazil went live this week for pre-registered customers. The launch, although restricted, ends a long period of anticipation for the arrival of the e-commerce platform from the Chinese group Pinduoduo (PDD) in the country. Known for selling everything from clothing to household items at ultra-low prices, Temu now projects rapid growth in the Brazilian market.
Brada, a startup specializing in social investments, has launched AprovAI, an artificial intelligence platform designed to assist proposers in drafting projects for resource acquisition through incentive laws. Described as a "ChatGPT for grant proposals," the tool aims to simplify and optimize the creation of proposals for positive impact.
SoftBank Prepares for IPO of Airbnb's Asian Rival. Masayoshi Son's investment firm aims to raise up to $400 million with the public offering of South Korean traveltech Yanolja.
Carta, the startup known for its solution to manage startup cap tables, is now looking at a new funding round. According to sources, the downround will be significant. As reported by TechCrunch, the startup is in talks with investment bank Jeffries for a secondary share sale, aiming for an estimated valuation of $4 billion.
Deals:
The real estate market is increasingly becoming a focal point in Patria Investimentos' plan to reach $50 billion in assets under management by the end of 2024, a year ahead of schedule. The company has just acquired the Colombian asset manager Nexus Capital. With this M&A transaction, the value of which was not disclosed, Patria adds $800 million under management to its real estate portfolio, surpassing $2.2 billion in real estate assets under its umbrella in Colombia. In Latin America, the total volume of this real estate division amounts to $7 billion.
Waystar, a private equity-owned provider of software that helps hospitals and doctors' practices manage their finances, has raised $968 million in its initial public offering. The IPO of 45 million shares was priced at $21.50 a share, Waystar said. The pricing, which was in the middle of its indicated range, gives Waystar a fully diluted valuation of $3.69 billion.
The American Cloud-based education software vendor PowerSchool is being taken private by investment firm Bain Capital in a $5.6 billion deal. The acquisition is the latest in a swathe of take-private deals led by private equity firms seeking a bargain on underperforming enterprise software firms. PowerSchool is a web-based platform that helps educational institutions manage operations such as enrolment, grades, attendance and communications with parents and students
Tech Events Radar:
All events held in the calendar year of 2024
ABVCAP Experience
Dates: June 10 - June 12
Location: Sao Paulo
Description: Major event in the private equity and venture capital sector in Latin America. This event offers extensive networking opportunities and valuable insights through various sessions and workshops. It will feature over 50 speakers and expects around 600 participants, providing a platform for knowledge exchange and fostering a comprehensive view of the alternative assets industry.
Volpe Capital Tech Breakfast
Date: June 10
Location: Sao Paulo
Description: Volpe Capital is holding a special breakfast for LPs on June, 10th to discuss trends in Latin America for the Venture Capital and technology markets. The event will take place at the Skye Restaurant & Bar at the Unique Hotel in São Paulo from 7:30 to 9 a.m.
**invite only
FII PRIORITY Summit
Dates: June 11-13
Location: Rio de Janeiro (Copacabana Palace)
Description: This event, themed "Invest in Dignity," is organized by the FII Institute and aims to explore how investments in ecological transition, technology, innovation, and social inclusion can build a new global order that prioritizes dignity for all. The summit will gather global leaders, government officials, investors, CEOs, entrepreneurs, and cultural icons to discuss critical topics.
VC Vision by Cubo
Dates: June 14th
Location: São Paulo - Cubo ItaúDescription: Cubo for Investors' flagship event of the year, bringing together experienced GPs and LPs from the region. This event will address two key challenges for the industry of Venture Capital in Latam: fundraising and liquidity. There are 2 sessions: a Keynote with an international Limited Partner and a panel about liquidity with 3 different perspectives: IPO, M&A, and Secondaries. Besides this, there will also be roundtable sessions for partners in VC Firms and Institutional Investors.
World Agri-Tech South America Summit
Dates: June 18-19
Location: Sao Paulo
Fin4She
Date: June 18
Location: Sao Paulo
Description: Focuses on promoting gender diversity and inclusion in the financial sector. It will feature discussions, panels, and networking opportunities aimed at empowering women in finance and fostering a more inclusive industry.
MIT Technology Review: EmTech Energy Brasil & Energy Summit
Date: June 17-19
Location: Rio de Janeiro
Description: Global event focused on the future of energy transition and sustainability. It features discussions, masterclasses, and networking opportunities with top industry leaders, aiming to explore and promote innovative solutions in the energy sector.
Tech Trends Sao Paulo 2024
Dates: June 25-26
Location: Expo Center Norte - São Paulo-SP
Description: The Tech Trends São Paulo 2024 is the meeting point for those looking to turn ideas into actions through technology and innovation. The event integrates the entire innovation ecosystem, bringing together government, market, startups, investors, and academia. Connections, business opportunities, and high-quality content all in one place! Learn more:
Febraban Tech
Date: June 25-26
Location: São Paulo
Description: FEBRABAN Tech is a premier event focused on the intersection of technology and the financial sector. It serves as a critical meeting point for professionals and innovators in banking and finance. The event showcases the latest advancements, trends, and solutions in financial technology, providing a platform for networking, knowledge sharing, and collaboration.
LAVCA Tech Brasil 2024
Date: August 21
Location: Google HQ na Faria Lima
Description: LAVCA Tech Brasil is an annual meeting of LAVCA's network of Brazil-focused VCs and tech investors in São Paulo. This year's meeting will include keynote fireside chats, breakout sessions and networking opportunities designed to build meaningful relationships amongst investors active in the region.
Brazil Tech Summit:
Date: August 9
Location: São Paulo
Description: This international summit features 100 global speakers and focuses on catalyzing entrepreneurial and business ecosystems in emerging markets. It includes panels on trends and opportunities in Brazil, industries of disruption, and the role of technologies like AI and blockchain.
Digitalks Expo:
Date: August 23-24
Location: São Paulo
Description: A major event that brings together professionals from various tech sectors to discuss digital transformation, innovation, and technology trends.
DevOpsDays Rio de Janeiro:
Date: August 17
Location: Rio de Janeiro
Description: Part of the global DevOpsDays series, this conference focuses on IT improvement, featuring sessions on DevOps culture and practices.
Colombia Tech Week:
Dates: August 26 - September 3
Location: Bogotá and CaliOverview: Colombia Tech Week 2024 is set to be a major event in the Latin American tech scene, bringing together startups, venture capitalists (VCs), accelerators, corporates, and international tech communities. The event aims to position Colombia as a hub for investment and innovation, with a focus on fostering connections and creating business opportunities across the region.
Chief Data & Analytics Officer Brazil Live:
Dates: September 10-11
Location: São Paulo
Description: This conference is geared towards data and analytics professionals, focusing on the latest trends and technologies in data management and analytics.
Sao Paulo Tech Week
Dates: Sept 16-22
Location: São Paulo
Description: Several events focused in LatAm Tech taking place in the city.
Bossa Summit 2024
Dates: Sept 25-26
Location: São Paulo
Description: his event is a major gathering for the Venture Capital market, featuring over 400 speakers, extensive networking opportunities, and a range of workshops and mentoring sessions. It's designed to bring together more than 10,000 attendees, offering around 200 hours of content on business and innovation.
LAVCA Week 2024
Date: 8-11 de Outubro
Location: Conrad NY Downtown
Description: LAVCA Week convenes leading private capital investors from Latin America and around the globe each year for a series of meaningful discussions and private meetings covering the latest trends in private equity, venture capital and other private capital strategies. Participation at LAVCA Week is carefully curated and capped. LAVCA Members, non-member private capital investors and qualified institutional investors are invited to attend. LAVCA Members have access to special early bird rates through 29 August 2024.
MMA INNOVATE BRASIL 2024
Date: Oct 22
Location: Sao Paulo
Description: MMA Innovate Brasil 2024 is poised to be a significant event in the marketing and technology landscape of Latin America. The event focuses on exploring the intersections between technology and creativity, featuring some of the most innovative thinkers in the industry, including CEOs, CMOs, and high-level executives from various industries, as well as academics and technology specialists.
#fswk24 - O Momento Atual dos VCs na Saúde
Date: November 6
Location: Rio de Janeiro
Description: This event focuses on the current landscape and opportunities for venture capital investments in the healthcare sector. Attendees will gain insights into the latest trends, challenges, and strategies for investing in health tech startups and innovative healthcare solutions.
Other events: Minas Summit, Fintech View, Score Summit, Roga DX
PS: If you want to be featured here, please send me an e-mail with your event following the format above: title, date, location, description, link for more info.
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Quote of the week:
"How people treat you is their karma; how you react is yours."
— Wayne Dyer