LatAm Tech Weekly
#170 - Powered by Nasdaq: State of Venture for 2024, Predictions for 2025, deals of the week... and much more!
Happy Sunday!
It’s official—the first LatAm Tech Weekly of 2025 is here, and that means the year has officially begun!
As the calendar turned, Wall Street entered the new year with a positive outlook, buoyed by the booming U.S. economy and successful tech IPOs, such as ServiceTitan. However, this optimism took a hit last Friday with the release of a surprisingly strong jobs report. But wait—why would a robust U.S. labor market dampen the mood? The answer lies in inflation. Friday’s market reaction served as a stark reminder that strong economic data isn’t always a blessing for investors, especially for interest-rate-sensitive strategies like venture capital.
Here’s the situation: The 10-year Treasury yield has climbed to 4.7%, up from 3.7% when the Fed started cutting the federal funds rate in September 2024. In other words, while the Fed is easing rates, the 10-year yield is heading in the opposite direction.
As my readers know, high interest rates can be a major headwind for tech. Why? Because they increase the cost of capital, reduce future cash flow valuations, and make riskier, long-term investments less appealing to investors. And of course, global markets are deeply interconnected, so this dynamic inevitably spills over into LatAm…but wait, we are not there yet!
I don’t want to kick off the year on a downbeat note, so hang tight—we’re about to dive into some positive venture capital data from Q4 2024! Let’s dig in…
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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.
Startup funding regained momentum in 2024, with AI (unsurprisingly) emerging as the star of the year. One out of every three dollars invested in venture capital went to companies working in AI-related fields. Funding to the AI sector in 2024 even surpassed the levels seen during 2021, the peak global funding year of the last decade.
Zooming out, global startup funding in 2024 reached nearly $314 billion, up about 3% from $304 billion in 2023, based on Crunchbase data. While this figure surpassed the pre-pandemic total for 2019, it still fell short of 2018 and 2020 funding levels, which reached $346 billion and $350 billion, respectively. The final quarter of the year drove the 2024 surge, with Q4 alone contributing $93 billion—a 36% increase year-over-year compared to Q4 2023. Historically, Q4 has been slower, but 2024 bucked the trend with record-breaking rounds, including $22 billion raised collectively by three companies.
The largest valuations of the year also came in Q4, led by AI-focused companies. OpenAI secured a staggering $157 billion valuation, Databricks raised $10 billion at a $62 billion valuation, and xAI doubled its valuation to $50 billion within just six months. Other major AI players like Waymo, Anthropic, CoreWeave, and Scale AI also raised substantial funding, collectively driving the AI sector to dominate headlines and investor interest.
Late-stage funding followed suit, climbing to $61 billion in Q4, a 70% increase quarter-over-quarter. This surge wasn’t limited to AI—billion-dollar rounds were raised across energy, semiconductors, banking, security, aerospace, and more. Brazil also mirrored this momentum, with significant late-stage rounds like Tractian’s $120 million and Blip’s $60 million in November. These large rounds reflect growing investor confidence in LatAm, a trend we’ll watch closely in 2025.
Moving on to CB Insights’ State of Venture for 2024, exits remained challenging. The median time from first funding to IPO stretched to 7.5 years, two years longer than in 2022. While Q4 saw an uptick in IPO activity, levels remain subdued compared to historical norms. In this climate, many late-stage startups are opting to raise private funding instead of seeking public markets.
The situation was similar in Latin America. Though the number of deals declined, total capital invested increased, with Brazil closing the year at around $2 billion in investments. Mexico followed with $1 billion. The largest deal in the region came from Brazil’s Asaas, an accounting software startup that raised $149 million in a Series C led by Bond. Collectively, 2024 was a more positive year for LatAm tech, and these developments provide a foundation for further growth in 2025.
What’s Next?
Looking at the past is essential to predict the future. Therefore I’ll end my introduction this week trying to predict what’s in store for tech in Latin America in 2025…
I believe 2025 will be an important year for secondaries. Deals like Warburg Pincus joining Contabilizei’s cap table—allowing early-stage funds like Kaszek to exit—will become more common. These transactions provide liquidity for investors while enabling companies to continue scaling.
Mergers and acquisitions are also likely to increase, as more companies achieve positive unit economics but remain too small for an IPO. I expect both international players from the U.S. and Europe and regional consolidations among LatAm startups to drive this activity.
Another noteworthy trend seen in the U.S.—VC-to-PE deals—may begin to take shape in Latin America. For example, the recent acquisition of RetailNext by Battery Ventures offers a model of how private equity buyers can provide meaningful exits for venture-backed startups. RetailNext, a 17-year-old company specializing in smart cameras for retail analytics, was sold for $100–$200 million. While the deal didn’t fully return investors’ $260 million in funding, RetailNext is still a solid company with $50 million in recurring annual revenue and profitability. This type of acquisition shows that even startups without blockbuster exits can find a path forward, creating value for stakeholders and offering operational stability.
If this trend takes hold in Latin America, it could provide much-needed liquidity for startups and investors, paving the way for a more sustainable and mature tech ecosystem. With alternative exit paths opening up, LatAm tech could see a new wave of growth and opportunity.
Time will tell if my predictions for 2025 will come true—but I’m optimistic that we’re on the cusp of an exciting year for the region.
General news:
OpenAI CEO Sam Altman revealed that ChatGPT Pro, priced at $200/month, is losing money despite demand exceeding expectations. Launched on Dec. 5, the plan offers advanced AI tools, but operational costs surpass revenues. OpenAI has burned billions to stay ahead in generative AI and admits it needs more capital than anticipated to achieve profitability.
Bloomberg Línea highlights 10 Brazilian startups poised for growth in 2025 through innovative verticals, M&As, or market expansions. Despite challenges in the VC ecosystem, investments reached $1.9 billion by November 2024, up slightly from $1.8 billion in 2023. Key players include QI Tech, CloudWalk, and Tractian, showcasing resilience and potential in diverse sectors.
Open Finance is transforming Brazil’s financial landscape, with over 42 million users in 2024 and 77% maturity, positioning the country alongside global leaders like the UK and Australia. For 2025, trends like embedded finance, AI-driven insights, and Open Insurance integration promise to reshape the ecosystem further.
Mexico introduced a 19% import tax on low-value goods, targeting Asian players like Shein and Temu. MELI and Amazon stand to benefit, with MELI poised for market share gains despite cross-border challenges. Both companies are set to expand their dominance in Mexico’s e-commerce market.
Microsoft is set to invest $80 billion in AI-focused data centers this fiscal year, up from $53 billion last year. Over half of this spending will be in the U.S., aiming to meet soaring demand for Azure's AI capabilities, which saw 33% revenue growth last quarter.
Brazilian SMEs recorded R$ 441.5 million in online sales from Dec. 1–25, up 43% YoY, according to Nuvemshop. Top categories included fashion, health & beauty, and accessories. Social media drove 25% of sales, with Instagram responsible for 90% of these orders.
Brazil's Receita Federal will require credit card operators and payment institutions to report financial transactions exceeding R$5,000 for individuals and R$15,000 for businesses starting Jan. 1, 2025, to enhance financial oversight.
Lerian appointed Marilyn Hahn, ex-Bankly, as its new Head of Business and Products. With extensive fintech expertise, she will focus on scaling Lerian’s embedded finance solutions for SMBs.
Deals:
Foodtech Alloy secured R$ 1 million from Sicredi Comunitá CVC and Ventiur Smart Capital. The funds will drive tech upgrades, team expansion, and nationwide growth.
The Men's, a Brazilian startup blending e-commerce and telemedicine for men’s health, raised R$2.6 million from BR Angels. The funds will expand its product line and target growth in weight loss, supplements, and sexual health.
Buk, a Chilean HR tech, raised $50 million in Series B funding, reaching an $850 million valuation. The funds will fuel expansion into Brazil and Mexico and enhance its employee benefits ecosystem.
Soquimat, a Chilean startup innovating sustainable concrete additives, raised $6 million to scale operations in Chile and Mexico.
General news:
Meta is ending its third-party fact-checking program in the U.S., replacing it with a “community notes” system similar to X. Mark Zuckerberg announced plans to collaborate with President-elect Trump to fight censorship and promote free speech globally. Content policies will be simplified, easing restrictions on topics like immigration and gender, while moderation will focus on severe violations.
iProov exposed a dark web scheme selling genuine biometric data in Latin America to bypass KYC systems. Using authentic documents and real images, this sophisticated fraud highlights the urgent need for advanced, multi-layered security solutions.
Inter appointed former Formula Indy driver Bruno Junqueira as head of its U.S. real estate investments. Junqueira will leverage his extensive market experience to support Inter’s expansion in the U.S., where it already serves 3.6 million customers.
Serasa awaits CADE approval for its acquisition of a 91.5% stake in Cerc, a key player in Brazil’s receivables registry market. If approved, the deal will strengthen Serasa’s portfolio and reinforce its position in the financial ecosystem.
Foxconn reported record Q4 revenue of $64.72 billion, up 15.2% YoY, driven by strong AI server demand. Its cloud and networking division, supported by clients like Nvidia, outperformed expectations, while consumer electronics remained flat.
Wareclouds, a Chilean logtech, will pitch at the World Economic Forum in Davos as the country’s sole representative. The company specializes in turning homes into micro-fulfillment centers and is leveraging its $4.5 million in funding to expand across Latin America.
Donald Trump announced a $20 billion investment in U.S. data centers by Emirati billionaire Hussain Sajwani to support AI and cloud technologies. The multi-year plan starts with facilities in Arizona and Texas, with Sajwani emphasizing the growing global demand for data centers.
dLocal, a Uruguayan fintech, secured a UK payment institution license, enabling it to onboard local merchants and strengthen its global reach. Despite sale rumors, CEO Pedro Arnt confirmed the company is not for sale.
UNK, a Chilean startup optimizing the food industry's cold chain, is expanding into Mexico. The company’s hardware and software solutions aim to reduce food waste and improve efficiency in global supply chains.
Deals:
Getty Images and Shutterstock announced a $3.7 billion merger, forming Getty Images Holdings. The merged entity aims to boost innovation with generative AI tools and projects $2 billion in revenue.
Invent Software acquired TaskDo, a Santa Catarina-based startup specializing in fiscal and accounting automation. The deal expands Invent’s market presence with innovative, agnostic solutions to optimize client performance.
Angra Partners acquired a 28.5% stake in Promip, a leader in agricultural biodefensives, for R$20 million. The investment will help Promip scale production and expand operations across Latin America.
Anthropic is reportedly in advanced talks to raise $2 billion, valuing the AI startup at $60 billion. Lightspeed Venture Partners is leading the round, following Amazon’s earlier $8 billion investment.
General News:
TECHCO, a Peruvian HR tech startup, is redefining recruitment in LatAm with its AI-powered "Talent Connect" platform, enabling bias-free, data-driven hiring within a day. Led by Alonso Bringas, TECHCO has secured 80+ clients and plans a $4 million funding round to expand into Mexico.
Brazil’s Unicorn Market faced a challenging 2024, with only QI Tech reaching unicorn status. While global VC activity focused on established firms, technologies like AI, blockchain, and biotech remain promising areas for growth in 2025.
Online SMEs in Brazil generated R$4.7 billion in revenue in 2024, a 42% YoY increase. São Paulo led with R$2.3 billion, and Pix accounted for 46% of payments. Fashion dominated sales at R$1.6 billion, followed by Health & Beauty at R$442.5 million.
Nvidia unveiled innovations beyond chips, including a personal AI supercomputer and robotics software. With partnerships like Toyota and AI tools supporting 200 billion parameters, Nvidia continues to expand its portfolio despite concerns over rising AI costs.
Banco do Brasil renegotiated R$11.4 billion in debts for 145,000 SMEs between May and December 2024. Discounts reached up to 96%, and repayment terms were extended to 120 months, aiming to reduce defaults and restore credit access for small businesses.
ABcripto appointed Fábio Moraes, ex-Febraban, as its new Director of Education and Research. Moraes brings blockchain expertise and aims to enhance public understanding of digital assets in Brazil’s crypto sector.
Big Bets completed the first closing of its second fund, raising R$150 million toward a R$300 million target. Spectra, the anchor investor, contributed R$60 million. The fund will focus on seed and pre-seed investments in capital-efficient tech startups.
Deals:
Whatnot, a live shopping platform rivaling TikTok Shop, raised $265 million in a Series E round, valuing the company at $4.97 billion. Funds will drive global expansion, tech hiring, and diversification into new product categories.
ObraBank, a fintech focused on real estate receivables, launched with R$20 million in funding from SRM Ventures and Insper’s innovation hub. ObraBank originated R$2 million in credit within 40 days and aims to reach R$100 million by 2025.
Rhino, an urban mobility startup specializing in armored car transport, raised R$10 million in a media-for-equity deal with 4Equity Media Ventures. Rhino plans to expand its premium services and reach R$50 million in revenue by 2025.
General news:
Andre Agra, former CFO of Pipefy, is now EVP of Partnerships & Alliances, focusing on integrating AI solutions with partners like Accenture and Oracle. With over 25 years in tech leadership, Agra aims to expand Pipefy’s global reach. The company, founded in Curitiba, operates in 150+ countries, transforming workflows with advanced AI.
Upload Ventures’ Carlos Simonsen states that VCs are increasingly cautious, scrutinizing startups for red flags like lack of founder experience, poor market understanding, and transparency issues. Strong personal connections to problems, resilience, and transparency are key to securing funding in today’s selective environment.
AI proptech Plaza has appointed Raphael Garcia as Partner and Commercial Director to drive growth and innovation in real estate. With 15+ years of experience at Grupo ZAP and Viva Real, Garcia will focus on expanding market segments and advancing tech-driven real estate solutions.
Deals:
Loocal, a logistics SaaS startup, raised R$1.2 million on EqSeed from 105 investors in its first external funding round since 2021. Funds will drive AI-powered route optimization and expansion to new cities. Loocal currently serves 2,500 clients in 20 cities, generating R$7 million in gross revenue over the past 12 months.
Archo Medical secured R$5.7 million to advance its innovative vascular solutions for aortic aneurysms. The funding will finalize its proprietary EndoHub device, with first human implants expected in Q3 2025. The Brazil-based startup aims to expand into LATAM and the U.S. markets.
Plurall, a Colombian fintech, secured funding from BBVA Spark, backed by the National Guarantee Fund (FNG). The partnership aims to expand formal credit access for microenterprises, leveraging tech-driven solutions to empower entrepreneurs.
General news:
PagBank has laid off hundreds of employees as part of a restructuring effort to streamline operations. The digital bank cited the need to focus on efficiency and long-term growth, reflecting broader industry challenges and competition in the fintech landscape.
Silicon Valley startups secured 57% of global venture capital in 2024, surpassing $90 billion, driven by AI innovations. Major deals included Databricks ($10 billion), xAI ($12 billion), and OpenAI ($6.6 billion). The region remains a global tech hub, hosting nearly half of big tech engineers.
Perplexity AI, valued at $9 billion, is challenging Google with its ad-free, objective search platform. Led by Aravind Srinivas, the company raised $500 million in 2024 and gained over 15 million users. Its direct-answer model, supported by prominent investors like Jeff Bezos, aims to reshape search and online advertising.
Brazil’s Government is demanding explanations from Meta about changes to its content moderation policies on Facebook and Instagram. Concerns center on misinformation and platform accountability, with the Ministry of Communications emphasizing the need for user-generated content to meet regulatory standards.
Deals:
VTEX acquired Newtail, a retail media startup, for $1–$10 million to expand its ecommerce advertising platform. The deal will help VTEX grow its advertiser base and attract retail clients as it seeks to dominate the retail media market in Latin America and beyond.
PsicoManager has acquired PsicoClub, a business school for psychologists, and Academia do Psicólogo, a mental health training platform. The acquisitions aim to build Brazil’s largest ecosystem for mental health professionals, integrating education and clinical training.
I have asked you again this week on LinkedIn what tech events do you suggest for this year, here is a selection of your responses curated by me for the first half of the year. If you want to see the full list click here.
AI Salon - Rio de Janeiro
Dates: February 4
Location: Rio de Janeiro, Brazil
Description: Inaugural AI Salon in Rio de Janeiro, part of a global network connecting AI founders, builders, investors, and partners. AI Salon is your gateway to innovation, collaboration, and growth within the AI ecosystem.
AI Salon was created by Jeff Abbott, founding partner at Blitzcaling Ventures in Silicon Valley, and is now present in 37 cities worldwide; our community has hosted over 3,300 participants and supported 190+ startups.
SXSW (South by Southwest)
Dates: March 7-15
Location: Austin, Texas
Description: South by Southwest® dedicates itself to helping creative people achieve their goals. Founded in 1987 in Austin, Texas, SXSW® is best known for its conference and festivals that celebrate the convergence of tech, film, music, education, and culture
South Summit
Dates: April 9-11
Location: Porto Alegre, Brazil
Overview: South Summit Brasil is one of the main innovation and technology events in Latin America, bringing together startups, investors, companies and global leaders to foster connections and explore business opportunities. Held annually in Porto Alegre, the event is an extension of the original South Summit, started in Madrid, and highlights the potential of the Brazilian and Latin American innovation ecosystem. With a program that includes lectures, panels and startup competitions, South Summit Brasil promotes the exchange of ideas, drives innovation and puts Brazil on the global technology map.
Brazil at Silicon Valley
Date: April 21-23
Location: Sunnyvale, California
Overview: Brazil at Silicon Valley is an annual conference organized by Brazilian students from Stanford and Berkeley universities, with the aim of connecting the most influential Brazilian leaders and Silicon Valley. Held in California, the event brings together entrepreneurs, investors and academics to discuss the future of innovation and development in Brazil, addressing topics such as technology, sustainability and digital transformation, promoting dialogue between the Brazilian ecosystem and global trends.
INVITE ONLY
Latin American Forum by Riverwood
Dates: April 24-25
Location: Miami
Description: off the record gathering with the main stakeholders, founders, and service providers of the tech ecosystem in Latin America, organized by Riverwood.
INVITE ONLY
Web Summit Rio
Date: April 27-30
Location: Rio de Janeiro, Brazil
Web Summit Rio is the Brazilian edition of one of the largest global technology and innovation events, known for bringing together startups, investors, company leaders and sector enthusiasts. With a program that includes lectures from renowned experts, panels on emerging trends and networking opportunities, Web Summit Rio has established itself as a strategic space to boost ideas, promote partnerships and connect the global innovation ecosystem.
Itau BBA Fifth Annual Tech Summit
Date: May 13
Location: New York
Description: An afternoon in New York with the main founders & funders of LatAm with panels and 1:1 sessions.
INVITE ONLY
VTEX Day
Date: June 2-3
Location: São Paulo
Description: Considered one of the largest digital commerce events in the world, VTEX Day brings together big names in retail, including customers, suppliers and influencers, in an environment dedicated to innovation and knowledge. The event is an opportunity to explore solutions, discuss trends, strengthen connections and gain valuable insights to boost business.
FEBRABAN Tech
Date: June 10-12
Location: São Paulo
Description: FEBRABAN Tech is a fundamental event for the financial sector, bringing together banks, fintechs, financial institutions and experts to debate the innovations that are shaping the future of the market. Held annually by the Brazilian Federation of Banks (FEBRABAN), the event reached a record of 55 thousand visitors in 2024.
Others: AI Health Frontiers at Cubo (Sao Paulo), 16 events by StartSe, DeepTech Days (March), Argentina Tech Week (May)
Bloomberg Linea - Interview with Hernan Kazah (Founding Partner at Kaszek)
Harvard Business Review - Why “Living Intelligence” Is the Next Big Thing?
I’ve listed my friend Isaac’s podcast Brazil (is not) for Beginners here before and have even been a guest - my first English language podcast. Isaac is an American founder living in Brazil and uses the podcast to explore Brazil and all its peculiarities. Unfortunately Isaac’ took the tough decision to close his startup last year and in this episode he chats with his cofounders, Daniel and Edu about their experience. We often only hear about the startups that work out, but it was really great to listen to such a genuine conversation about what didn’t work out. I recommend this one for founders. Click Here
Harvard Business Review - “Use Strategic Thinking to Create the Life You Want”
Netflix - I’m Tim (Documentary on Avicii)
"Every accomplishment starts with the decision to try." -- John F. Kennedy
StartCo is next March 3rd and 4th in Medellín, 🇨🇴. https://startco.com.co