LatAm Tech Weekly

#191: Women in finance and tech, AI commercial, VC M&As, deals of the week... and much more!

Weekly writing about what is happening in LatAm tech. By day, I work at Itau BBA advising mid-sized technology companies in their next strategic transaction. By night, I am reading and learning about technology in general (now, with a focus on AI). During the weekends, I’m writing the LatAm Tech Weekly.

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Happy Sunday!

I was really glad to see how much engagement last week’s special edition got—thanks for all the replies, shares, and kind words. I put a lot of time into that one, so it’s great to know it landed well. I’ll aim to bring more editions like that going forward.

This week was packed with great moments, especially around women in finance and VC—something I’m proud to be part of.

On Monday, I recorded an episode for Itaú Unibanco’s “Investindo com Elas” series by ION. I’ll share it once it’s out!

On Tuesday, Itaú BBA, Cubo Itaú, and Diversity VC hosted a breakfast for women in VC. We had the pleasure of hearing from the amazing entrepreneur Paola Vilas.

And on Thursday, I spoke to a group of 30+ women wrapping up college and looking to break into finance. It was energizing to share a few lessons—and learn a lot from them too.

“There is no limit to what we, as women, can accomplish.” — Michelle Obama

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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.

I know this newsletter is supposed to focus on LatAm tech—but AI touches us all, so I can’t help but dive in again, especially when the developments are this relevant. This week, Kalshi made history by airing what appears to be the first-ever fully AI-generated commercial during the NBA Finals. Directed by PJ Accetturo, a self-described “AI Filmmaker,” the 30-second spot was created using Google’s text-to-video generator Veo 3—executed in just two to three days by a tiny team of two to three people who ran 300–400 prompt iterations to produce 15 usable clips. The result? A bizarre collage featuring aliens chugging beer, a man floating in eggs, and cowboy retirees with chihuahuas—all achieved for around $2,000, a roughly 95% reduction compared to traditional production budgets. You can check out the ad here, and dive into PJ’s breakdown of the process—prompt tips and all—in his X thread—a great resource for anyone curious how scalable this method really is. This is a wake-up call: content production is entering a new era, and LatAm startups can now play with the same tools used by major U.S. brands at a fraction of the traditional cost.

On a different front, Salesforce quietly updated Slack’s API terms on May 29, effectively creating a “data wall” around Slack by prohibiting third-party tools from bulk indexing, copying, or storing Slack data. That means apps like Glean can still fetch data real-time but can’t build internal search indices or knowledge graphs—limiting their ability to integrate with any AI model of choice. More on the move here. This matters because as companies build their AI stacks, they should have the freedom to plug in their preferred models, independent of their collaboration tools or ERPs. Building a composable, flexible ecosystem is essential—and this kind of vendor lock-in undermines that.

These “data walls” also echo themes discussed on the latest BG2 Pod, where Brad Gerstner and Bill Gurley explored China’s unique AI strategy—one that feels more Darwinian than centralized. Rather than picking winners, provincial governments across China are seeding hundreds of AI startups, each developing proprietary foundational models. Then, like a giant R&D tournament, only the strongest players—think DeepSeek’s open-source R1—earn further backing and scale globally. It’s a powerful model: wide experimentation, localized innovation, and market-driven validation.

Key data points:

• Since 2013, local governments launched an average of ~238 new VC “guidance funds” per year—these often invest in dozens of startups per province to spark local innovation.

• Projects like Hangzhou’s “Six Little Dragons”—DeepSeek, Unitree, DEEP Robotics, Game Science, BrainCo, Manycore—are direct outcomes of province-backed incubator programs, often university-linked and supported with public capital.

• DeepSeek’s success shows the payoff: a locally funded AI startup that broke into the global stage with its R1 model, triggering ripple effects across tech markets.

What It Illustrates:

• Seed Broadly: Provinces back hundreds of projects, creating a competitive ecosystem.

• Let Winners Emerge: Only top performers survive to receive larger follow-on investment.

Scale Locally, Impact Globally: DeepSeek’s province‑led backing enabled it to challenge U.S. giants, despite lower infrastructure.

Moving on to my usual Pitchbook read on VC, a recent piece on the outlook for M&A shed light on an important theme. While the era of mega-deals hasn’t fully returned, the environment is far from quiet. Elevated interest rates, macro uncertainty, and tighter regulatory scrutiny have led public companies to slow down on large-scale transactions. The number of active public acquirers, for instance, dropped from over 1,400 in 2021 to 815 last year. But what’s notable—and encouraging—is the surge in smaller, strategic acquisitions. With startup valuations more reasonable, liquidity needs growing, and many companies staying private longer, we’re seeing a meaningful pickup in mid-market deal activity. All signs point to this segment remaining active—and potentially accelerating—as buyers seek innovation and inorganic growth at attractive entry points.

This momentum is also being fueled by a growing urgency for private company liquidity. With IPO windows still tight, M&A has become the most viable and efficient path to exit. In Q1 2025, the median time since a company’s last funding round reached a record 2.4 years—highlighting the growing pressure (and opportunity) for well-timed acquisitions. Founders and investors are increasingly open to conversations that, even a year ago, might have felt premature.

The pipeline of high-quality targets is deep, and there’s appetite from both strategics and financial sponsors to deploy capital selectively but decisively.

Even on the large-cap front, there are signs of optimism. Despite heightened antitrust scrutiny—especially under the current U.S. administration—landmark deals like Google’s $32B offer for Wiz show that high-profile transactions are still very much possible when the strategic rationale is strong.

Private equity is also stepping up in a more meaningful way. While buyouts have traditionally been a smaller slice of VC-backed exits, they now outpace public listings. Sponsors are leaning in—especially for bolt-on opportunities in software, healthcare, and business services. And while rate sensitivity remains a factor, the long-term drivers for M&A are intact: dry powder, sectoral disruption, and the ongoing need for growth through acquisition.

Why it matters for LatAm: This global shift toward smaller, strategic M&A is already playing out across Latin America. As valuations reset and local capital markets remain selective, we’re seeing more regional founders view M&A as a viable exit—not just a fallback. For investors and corporates operating in LatAm, this opens a window to access high-quality assets with real traction, often at more reasonable entry points. And for buyers, especially those with cross-border ambitions, this is a prime moment to lean in—with the right structure, timing, and execution, the opportunity set has rarely looked more compelling.

This week marked a potential turning point for the U.S. IPO market, with two high-profile fintech names—Chime and Circle—making their public debuts. Both deals were technically down rounds relative to their last private valuations, and that’s worth emphasizing: Chime, once valued at $25 billion, went public at a valuation closer to $11 billion, while Circle, which had previously aimed for a $9 billion SPAC deal in 2022, began trading at around $4.5 billion. And yet, both listings were clear market successes. Chime (CHYM) jumped over 37% on its first day, closing around $37 and now trading near $34–35. Circle (CRCL) saw a dramatic surge, climbing from its $31 offering price to over $130 within days—a gain of over 300%.

What this shows is that the market is open again—selectively, yes, but open. Valuation resets are not only being accepted, they’re becoming the norm—and in many cases, they’re actually creating the setup for strong aftermarket performance. This is a healthy dynamic. For companies in Latin America watching the IPO window, it’s a relevant signal: timing is improving, investor demand is real, and coming to market with the right pricing expectations can still deliver a win—for founders, funds, and public shareholders alike.

General news:

• Meta is in talks to invest over $10B in Scale AI, which powers models for OpenAI and Microsoft. The deal would be one of the largest AI bets to date, with Scale potentially doubling revenue to $2B in 2025. 🇺🇸

• CAF is expanding globally while launching VerifAI Docs, an AI tool to detect fraud in unstructured documents, as it strengthens presence in the US, UK, and Uruguay. 🇧🇷

• Koin partnered with iFood’s Zoop to offer AI-based fraud prevention and payment processing to e-commerce clients across LatAm. 🇧🇷

• Itaú Unibanco’s CEO announced a bold move to go fully digital by 2028, using AWS cloud and agile methods to reshape customer experience and AI governance. 🇧🇷

• Brazil may end tax exemptions on fixed income like LCIs and CRIs; a 5% tax is proposed, causing a pre-rule-change issuance rush. 🇧🇷

• Pix creators received official recognition from the Central Bank, as Pix Automático nears launch to enable recurring payments. 🇧🇷

• HSBC Brazil is seeing double-digit growth, boosted by China connectivity and cross-border dealmaking, including a $165M panda bond. 🇧🇷

Deals:

• Xepelin raised $300M MXN from BBVA Spark to support its AI-driven finance platform for SMEs in Mexico. 🇲🇽

• HIX Capital acquired 70% of GeoCapital, expanding into global investing and boosting AUM to R$3.5B. 🇧🇷

• Slide is targeting a $2.12B valuation with plans to raise $340M after Circle’s successful IPO signals new market optimism. 🇺🇸

• Nekt raised R$5M from top investors to scale its data and AI analytics platform built for SMBs, already serving clients globally. 🇧🇷

General news:

• Itaú Unibanco launched a generative AI agent to guide clients through investments via chat, with personalized, jargon-free insights. 🇧🇷

• Brazil’s fintech revolution—driven by Pix, Open Finance, and bold regulation—was highlighted at Febraban Tech 2025, where leaders emphasized AI and hyper-personalization as the future of banking. 🇧🇷

• DeepSeek, China’s open-source AI model, is gaining traction in banking for its transparency and cost benefits, with adoption growing at institutions wary of closed models. 🇨🇳

• Axcell and Idesam will invest up to R$10M per project in Amazon-based bioeconomy startups focused on waste treatment and ecosystem impact. 🇧🇷

• Argentina’s new economic measures, including a $2B repo deal, sparked optimism as markets reacted positively with bond and stock gains. 🇦🇷

• AWS opened applications for its GenAI Accelerator, offering $1M in cloud credits and targeting early-stage startups from LatAm and beyond. 🇺🇸

Deals:

• Tiendanube acquired Argentina’s VICI to launch Nuvem Chat, an AI WhatsApp sales tool for LatAm SMBs. 🇦🇷

• Afinz acquired D3 Pagamentos to expand its SMB ecosystem and launched Afinz Empresas to target 500K clients. 🇧🇷

• Dimensa (Totvs + B3 JV) acquired insurance software firm Agger for R$260M—at nearly 2x their usual M&A multiple. 🇧🇷

• Greener and Iriun launched Noris, a new M&A advisory for solar assets, amid growing consolidation in Brazil’s distributed energy market. 🇧🇷

General News:

• Google celebrated 20 years in Brazil by announcing AI-driven initiatives to train 3M small businesses, launch a Responsible AI chair at USP, and expand Gemini and Veo 3 tools in Portuguese. 🇧🇷

• Conta Simples launched an international account with a multi-currency card and no IOF tax, developed with Airwallex, to help startups manage cross-border payments. 🇧🇷

• ABVCAP experts emphasized the need for education and storytelling to attract investors to alternatives, especially family offices in Brazil. 🇧🇷

• OpenAI signed a surprise deal to use Google Cloud for AI workloads, showing shifting alliances in the compute arms race. 🇺🇸

• iFood unveiled new perks for couriers, including same-day payouts, rewards, and better route control, responding to increased competition. 🇧🇷

• Creditares is launching a R$100M FIDC to expand rural credit via its Agro Open Bank and field banker model after approving nearly R$1B since 2022. 🇧🇷

• Fleet Space expanded to Chile to support the country’s critical minerals strategy with real-time 3D AI exploration via ExoSphere. 🇨🇱

• G20 GDP rose 0.8% in Q1 2025. Brazil led EMs with 1.4% growth, while the US contracted and China slowed. 🇧🇷

• clickCompliance won Cemig’s AI innovation challenge and will receive up to R$1.6M to upgrade its whistleblower platform with NLP and automation. 🇧🇷

• Febraban Tech 2025 saw Itaú pilot Pix via WhatsApp for 2M users and a GenAI advisor. 🇧🇷

• Febraban Educação held an accessible session on cybersecurity and AI, demystifying phishing, deepfakes, and the limits of machine detection. 🇧🇷

• Bank transactions in Brazil rose 8% in 2024, with mobile at 75% of volume and Open Finance consent growing 28%, showing digital adoption maturity. 🇧🇷

Deals:

• Chime priced its $864M IPO above range, signaling strong investor demand and renewed energy in the digital banking sector. 🇺🇸

• Voyager Technologies surged 82% on its NYSE debut, reaching a $2.78B valuation with AI-driven space and defense tech. 🇺🇸

• Pátria Investimentos acquired Vectis’ real estate funds, adding R$1.6B in AUM and expanding credit exposure to R$5B. 🇧🇷

General news:

• Softplan split its operations, launching Starian to target private-sector SaaS. The public unit will focus on justice and infrastructure, with both betting on AI and M&A for growth. 🇧🇷

• CVM plans to ease access to capital markets with new rules for crowdfunding, including secondary markets and faster paths to raise up to R$300M. 🇧🇷

• Cross-border payments are being reshaped by tech, regulation, and user expectations—Pix-level speed and transparency are now the baseline. 🇧🇷

• Evertec integrated Google Pay into Placetopay in 12 LatAm markets and plans a Colombian instant payment feature by September. 🇨🇴

• Petrobras opened a call to select a manager for its R$500M CVC fund focused on the energy transition, targeting 2026 operations. 🇧🇷

• Plaza launched Maya ADM, an AI assistant for real estate rentals that automates 90% of tasks via voice or WhatsApp, with Maya Fala for proactive sales calls. 🇧🇷

• Trump criticized Fed Chair Powell for resisting rate cuts and hinted at forcing lower rates, while softening his stance on Elon Musk. 🇺🇸

• Bitcoin dropped below $110K amid geopolitical risks, even as BTC ETFs saw $165M in inflows led by BlackRock’s IBIT. 🇺🇸

• Depay and Brubank enabled Pix payments in Brazil using Argentine pesos—no card, no cash, real-time FX conversion. 🇦🇷

• ABVCAP highlighted HRTech Skillcerto, which is scaling rapidly and using AI to analyze candidate videos and automate hiring. 🇧🇷

• Supreme Court justices in Brazil are leaning toward holding platforms liable for illegal content without court orders, sparking concerns from Meta and Google. 🇧🇷

• Trump policies, earnings, and inflation data buoyed U.S. markets Thursday, with Oracle surging 13% and Boeing falling after a crash. 🇺🇸

• Google sued Latam Airlines in the U.S. to block Brazilian courts from ordering global removal of a YouTube video, citing free speech. 🇺🇸

Deals:

• TIVIT was acquired by Italy’s Almaviva, creating a tech leader with R$12B in combined revenue across cloud, security, and SAP. 🇧🇷

• BlackRock plans to raise $400B for its private markets arm, aiming to reach a $280B valuation and $35B in annual revenue by 2030. 🇺🇸

• OpenAI is reportedly raising $40B in a deal led by SoftBank, with PIF possibly contributing $30B and a follow-up round of $17B expected by 2027. 🇺🇸

General news:

• Randoncorp returned to the CVC game with two exits (Money Money, Delta Global) and is targeting new investments in 2025 alongside its acceleration program. 🇧🇷

• Accordia raised R$2 M to launch Red Flags, an AI-powered fraud detector for corporate financial statements, tailored to Brazil’s accounting standards. 🇧🇷

• iFood doubled down on superapp ambitions, unveiling loyalty, health, B2B logistics, and internal “jet ski” innovation squads. 🇧🇷

• Febraban Tech 2025 went big on experiential booths—from AI racecars to robots and tennis courts—emphasizing engagement beyond panels. 🇧🇷

• Procon‑SP fined QuintoAndar R$560 k for abusive rental contract practices, signaling increased regulatory focus on digital real estate. 🇧🇷

• Trump announced a military parade in D.C. for the Army’s 250th anniversary—quietly supported by Coinbase and other big tech. 🇺🇸

• US‑China reached a tentative deal easing rare earth and tech export curbs, marking a trade détente pending presidential approval. 🇺🇸 🇨🇳

Deals:

• Lounn raised $1 M pre‑seed from Kolab Ventures and Highline Beta to scale its AI-powered SME credit marketplace in Mexico. 🇲🇽

You will see below an updated list of events, including for the second half of the year. If I forgot your event, and you want to include it - please sure to send those my way asap!

• SciBiz Conference 2025
  Location: São Paulo, Brazil
  Date: June 16–18
  Description: Latin America’s largest DeepTech science‑to‑business conference, held at CDI USP campus. It connects scientists, investors, entrepreneurs, and exhibitors with matchmaking-powered meetings, workshops, and networking. More Info

• Cubo Conecta 2025

  Date: September 2025 (exact dates to be announced)

  Location: São Paulo, SP

  Description: Celebrating its 10th anniversary, Cubo Conecta is the flagship event of Cubo Itaú, bringing together thousands of entrepreneurs, investors, and innovation leaders from across Latin America. The event offers over 90 hours of content and facilitates more than 5,000 digital connections, highlighting the potential of the technology and innovation ecosystem in the region.

  More info

• Brazil Climate Summit 2025
  Date: September 13–14, 2025
  Location: New York, NY, USA
  Description: The Brazil Climate Summit focuses on Brazil's role in the global green transition, emphasizing the importance of private sector involvement and international capital to accelerate low-carbon businesses. The event gathers leaders from various sectors to discuss sustainable development strategies.
  More info

• Gartner CIO & IT Executive Conference 2025
  Date: September 22–24, 2025
  Location: São Paulo, SP
  Description: A gathering of CIOs and IT leaders to discuss digital transformation, organizational leadership, and innovation strategies across industries.
  More info

• Web Summit Lisbon 2025
  Date: November 10–13, 2025
  Location: Lisbon, Portugal
  Description: One of the world’s most influential tech conferences, Web Summit Lisbon connects 70,000+ attendees from startups, enterprises, and media to discuss trends shaping the tech industry.
  More info

• Brazil Tech Summit 2025
  Date: December 9, 2025
  Location: São Paulo, SP
  Description: Part of the Global Startup Ecosystem Series, Brazil Tech Summit brings together entrepreneurs, government leaders, and investors to foster tech-driven innovation across Latin America.
  More info

• Bloomberg Technology: Ramp hits USD 16B valuation in new funding round

• Pitchbook: US VC-Backed M&A Outlook

• The AI Daily Brief (Formerly The AI Breakdown): Artificial Intelligence News and Analysis

• BG2 Pod

"People do not decide their futures, they decide their habits and their habits decide their futures.” - Unknown