LatAm Tech Weekly
#179 - Powered by Nasdaq: AI x Search, Q1 2025 Market Sentiment, 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!
One of my favorite podcasts is BG2Pod with Bill Gurley and Brad Gerstner. I love how they break down major tech trends in a light yet deeply informed and opinionated way. Having lived through multiple VC cycles, their ability to compare past and present is especially insightful—something that feels essential in the fast-moving world of AI, where new developments emerge daily.
In a recent episode, they revisited the “search war” (remember Ask Jeeves? I do—and yes, that dates me) and drew parallels to today’s AI model race. Will one LLM dominate, as Google once did in search? Or are we heading toward a more diversified landscape? It’s a fascinating question that got me thinking a lot…
With that, IF my crazy work schedule permits, I will record a short video on this topic in Portuguese this week—keeping it light, as always. Stay tuned by following me on LinkedIn or Instagram.
Still in the AI topic, SaaSholic and AWS are putting together a LatAm AI Benchmark Survey. Founders, please participate! As a writer, I find it extremely hard to find solid LatAm (only) data. This type of initiative is important to our ecosystem :)
Follow me on LinkedIn , Instagram or X for daily updates!
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.
On to the usual market update, in an increasingly shaky economic environment—where IPO prospects remain murky—venture capital is becoming more polarized, as highlighted in PitchBook’s latest Quantitative Perspectives report. LPs are doubling down on mega-funds, while GPs concentrate their bets on standout sectors like AI, SaaS, and biotech. This focused capital deployment has driven unicorn valuations to new heights, with their combined value approaching $3 trillion for the first time.
As 2025 unfolds, the VC landscape continues to absorb the aftershocks of a prolonged high-rate environment in the U.S., evolving investor expectations, and a wave of valuation resets. Despite signs of macro resilience in the country—such as easing inflation, a stable labor market, and robust GDP growth—the Federal Reserve has chosen to maintain benchmark interest rates. This signals a more cautious path forward, suggesting that a “higher-for-longer” rate stance may persist. Such conditions are likely to keep a lid on deal activity and exit volumes, especially in the absence of clear improvements in market confidence. Political instability, trade disputes, and tariff increases have only added to investor anxiety, while public markets—particularly the Nasdaq, which has recently entered correction territory—remain volatile, further dampening sentiment.
Although the data on the report focuses exclusively on the U.S., the same dynamics are clearly playing out in Latin America. I often point out how developments in the U.S. market not only influence but also mirror trends in our region—and that continues to hold true. In Brazil, for example, basic interest rates have climbed to 14.25%, prompting a similar shift in capital flows: money is moving out of equities and alternative assets, and into fixed income, as investors seek safety and yield.
In this complex backdrop, venture capital has become increasingly polarized. Capital is flowing predominantly into high-growth verticals such as artificial intelligence (AI), machine learning (ML), and software-as-a-service (SaaS), leaving other sectors struggling to attract investment amid tighter conditions. At the same time, megafunds continue to dominate the fundraising environment, with well-established, well-connected managers securing substantial capital and further solidifying their influence in the market. LPs are growing more selective in their capital allocations, favoring fewer, larger funds with established track records. This is narrowing the field of active investors and concentrating capital among elite players. The same holds true across Latin America, where nearly every fund is out in the market trying to raise—but investors continue to favor the more established names. Emerging managers are finding it tough to gain traction, while the larger, well-known funds still have dry powder to deploy. That said, they are investing more selectively and at a slower pace, focusing on high-conviction theses.
IPO activity, meanwhile, remains slow. Despite high valuations and relatively low market volatility, the IPO window was largely shut in 2024. This stagnation may indicate that private market investors are still anchored to the lofty valuation expectations set in the boom years of 2020 and 2021. As a result, secondary market activity has picked up, although it remains highly concentrated in a small number of unicorns. Investors continue to have the upper hand - as we are still in a “Investor Friendly Environment” across all stages. The graph below illustrates this well.
Exit dynamics are evolving as well. Founders, scarred by past market volatility, remain cautious and hesitant to engage with short-term-minded investors. Historically, venture capital has been an illiquid asset class, requiring patience. Yet with a prolonged drought in distributions, investors may begin exploring alternative liquidity paths—such as secondary transactions and continuation funds—even if those options remain relatively untested.
The current environment remains fundamentally challenging. Net asset value (NAV) trajectories for recent vintages have deviated sharply from historical norms, reflecting the impact of over-inflated portfolio markups during the 2020–2022 period. These distortions have further fueled LP caution, driving the trend toward capital consolidation. While the long-term outlook remains optimistic—especially for technology-driven sectors—any meaningful recovery in the IPO market appears somewhat. Nonetheless, history has shown that downturns are temporary… I’m still cautiously optimistic for the sector, always looking at the glass half full.
General news:
Itaú nears 6 million users on its all-in-one app, as it continues the migration of six separate platforms—including Itaú Cartões, Credicard, and Iti. Since July 2024, 99% of users have successfully transitioned. The unified app, designed to increase engagement through personalized insights and expanded services, has reached an 80-point NPS. The goal is to consolidate 15 million customers by end-2025.
DeepSeek, Chinese AI startup, is reportedly restricting staff travel abroad amid government concerns over AI talent and trade secrets. Parent company High-Flyer has withheld passports of key employees. Founder Liang Wenfeng says the focus remains on research—not commercialization—contrasting with Silicon Valley peers.
Tow Center research shows that nearly 1 in 4 Americans now use AI tools instead of traditional search engines.
Monet and Refácil launched a digital bill-payment solution in Colombia, allowing over 800K users to pay for essential services on credit. Small businesses benefit too, with reduced reliance on cash and improved financial management. The service supports credit-building and enhances financial inclusion.
Stefanini Group will double its Latin America investment to over $100M over two years, targeting 40% growth in Chile and further expansion in AI, cybersecurity, cloud, and financial solutions. Stefanini, which operates nearly 200 startups, is betting big on AI for industry-wide digital transformation.
tl;dv, the German AI-powered meeting platform, has expanded to Brazil, appointing Rodrigo Stoqui as country manager. With over 2 million users globally, Brazil is its largest market. The company plans to quadruple its user base locally, with CRM integrations and LatAm expansion next.
Sked24, a Chilean healthtech, is expanding to Peru and Canada through partnerships with Clínica Internacional and Insight Medical Imaging. Its platform reduces appointment time by 70%. A new deal with Bci Seguros brings the company into the insurance space. Sked24 expects 50% growth in 2025 and is integrating AI to enhance usability.
Brazil’s Central Bank reported a data leak involving 25,349 Pix keys from fintech QI SCD. Only registration data was exposed—no passwords, balances, or transaction info were affected. This is the first Pix breach of 2025, following 18 incidents since the system’s launch.
Deals:
Klarna filed for a U.S. IPO to raise $1B at a valuation over $15B. The Swedish fintech posted $2.81B in 2024 revenue and $21M in net income. After falling to $6.7B in 2022, its valuation rebounded to $14.6B in 2023. Klarna continues to refocus with AI investments and strategic partnerships. (via email)
Maldivas, parent of insurance platform Globus, raised R$ 15M from the Enseada family office, reaching a R$ 250M valuation. The investment will expand its Partners division, aimed at building brokerages with advisors, lawyers, and accountants. Maldivas targets 70 partners and R$ 480M in revenue by 2029, with AI virtual assistants enhancing operations.
Redarbor acquired 100% of Chilean startup Genomawork, which uses AI and gamification to optimize hiring. Redarbor, the world’s largest job board group by traffic, adds Genomawork’s clients like Nestlé and BBVA to its portfolio. The deal strengthens its tech-driven strategy across Latin America.
Selbetti kicked off 2025 with its first acquisition, buying digital transformation consultancy Euax for R$ 25M. This marks its 41st acquisition and sets up a new consulting division. CEO Júnior Selbach targets R$ 1B in revenue by 2026, with a strategic shift away from hardware dependence.
General news:
Itaúsa (ITSA4) posted a record net profit of R$ 3.72 billion in Q4 2024, a 24.8% increase year-over-year. Contributing R$ 15.7 billion, Itaú Unibanco remained the key driver. With a diversified portfolio and consistent performance, Itaúsa continues to appeal to long-term investors.
Prometeo has launched Borderless Banking, a new solution to streamline financial transactions between Latin America and the U.S. The platform integrates with local infrastructure, allowing real-time payments, collections, and treasury management. Initially available in the U.S., Mexico, Brazil, Colombia, and Argentina, it uses APIs to improve transparency, compliance, and reduce cross-border inefficiencies.
Chile, Uruguay, and Mexico have emerged as the top countries for entrepreneurship in Latin America, according to the Global Entrepreneurship Monitor 2024. 68.6% of respondents now find it easier to start a business—up from 58% in 2019. However, fear of failure remains high, jumping to 84.3% in 2024 from 68% in 2019.
Al Gore’s Just Climate fund raised $175 million from Microsoft and CalSTRS to scale nature-based climate solutions. Part of Generation Investment Management, the fund backs growth-stage climate-techs and aims to transform land use toward net-zero and biodiversity goals. Its first investment went to NatureMetrics, a biodiversity monitoring company. Microsoft also co-founded the Just Climate Nature Alliance.
Deals:
Google has acquired cybersecurity startup Wiz for $32 billion—its largest deal ever, topping the Motorola acquisition. Wiz initially rejected a $23B offer last year, aiming for an IPO, but reversed course due to market conditions. The move enhances Google Cloud’s security capabilities amid stiff competition with Microsoft and AWS. The deal is pending regulatory approval, potentially testing antitrust scrutiny under the new U.S. administration.
Dealerspace (Bolt Software) made its third acquisition in eight months, acquiring F&I Brasil to deepen its auto financing and insurance capabilities. Already present in 60% of Brazilian dealerships, the platform integrates CMS, CRM, AI, and omnichannel tools. Backed by L4 Venture Builder and Canary, Dealerspace grew revenue 30% in Q1 2025 and targets R$ 60 million for the year. More acquisitions are planned to build a full-suite dealership solution.
Mutuus raised $3.2M to expand its AI-powered digital health membership platform in Latin America. With 13,000+ members and $25M saved for families, the startup will use the funds to scale its B2B model and deepen hospital partnerships. Investors include Amador and Latin Leap. CEO Jean-Louis Brunet aims to democratize quality healthcare across the region.
Mondelēz International invested in Colombian fintech Zíro through its Sustainable Futures platform, aiming to support 100,000 small retailers. Zíro offers accessible inventory financing, improving business sustainability without high-interest loans. Backed by Sagana, the initiative highlights Mondelēz’s focus on community empowerment and inclusive growth.
General News:
Storm Education is making English learning more accessible in Brazil by delivering bite-sized lessons directly through WhatsApp. Originally a nonprofit, the edtech now partners with companies and governments in a B2B model and integrates AI and Brazilian culture into its content. Backed by Anjos do Brasil, the startup is also exploring branded education as a monetization strategy.
ABBC has appointed its first dedicated CEO, Leandro Vilain, marking a governance shift at Brazil’s Association of Banks. Vilain brings over 30 years of financial sector experience from roles at Febraban, HSBC, and Oliver Wyman, where he helped shape Pix, Open Finance, and Drex initiatives. He takes office in April.
Porto Digital, one of Brazil’s largest innovation hubs, reported R$6.2B in revenue and is expanding nationwide. With 475 companies and over 21,500 employees, the Recife-based hub is also opening a center in Portugal. It aims to create 50,000 jobs in Recife over 20 years, focusing on both business growth and social impact.
Bitso reported that stablecoin purchases outpaced Bitcoin on its platform in Brazil in 2024. Stablecoins accounted for 26% of all purchases, compared to 22% for BTC. The shift is attributed to the rising dollar (+27% against the real) and growing interest in digital dollars amid regulatory progress. Bitso now has 1.9 million users in Brazil.
Cade, Brazil’s antitrust agency, ruled against Wellhub (formerly Gympass) for violating exclusivity agreements with gyms, benefiting competitors like TotalPass and GuruPass. All exclusivity contracts signed since 2022 were canceled, and new ones are now prohibited. The ruling opens the market to broader competition in the fitness aggregator space.
Deals:
Vivo is acquiring smartphone accessories brand i2GO in a deal worth up to R$ 80 million. With over 20,000 points of sale and a strong retail presence through Ovvi, the acquisition strengthens Vivo’s position in a growing $112B global accessories market. i2GO’s team will join Vivo to boost innovation and distribution.
PunaBio secured $16.81 million in early-stage funding to develop sustainable biological solutions that boost agricultural productivity. The startup aims to help farmers increase yields while protecting the environment.
BioEsol raised $15 million in a round led by Ciri Ventures to launch BioEnergía Total in Mexico. The platform combines AI-powered storage, solar generation, and flexible financing to provide clean energy for large-scale industries. With 100+ projects in the pipeline across multiple sectors, BioEsol is positioning itself as a key player in Latin America’s energy transition.
X, Elon Musk’s rebranded Twitter, raised nearly $1B at a $32B valuation. The round, which values the company at its original 2022 acquisition price, involved investors such as Darsana Capital and 1789 Capital. A 25% stake in xAI, Musk’s AI startup valued at $45B, helped drive the rebound. The funds will support debt repayment and new initiatives like X Money in partnership with Visa.
General news:
StoneCo projects 14% growth in 2025 after a 41.3% profit jump last year. The company reported Q4 net income of R$665.6M (up 18.1% YoY), with R$3.6B in revenue and R$143.9B in transactions.
Nuvei has received approval from Brazil’s Central Bank to operate as a regulated Payment Institution. The Canadian fintech can now acquire transactions and manage prepaid accounts. Brazil is a key market, following Nuvei’s recent expansion via acquisition. The company operates in 200+ markets, processing $200B annually across 700 payment methods.
Caixa has partnered with fintech Celero for the first time in its 164-year history to enhance financial management for its business clients. The collaboration will introduce AI-driven tools to optimize cash flow and automate financial operations for over 1.6 million companies. Rollout is expected later this year.
Layers is partnering with U.S.-based Clever to enhance edtech infrastructure in Latin America. The integration supports 3.5M students through streamlined data access, improved security, and tools like Single Sign-On and automated rostering. Layers’ SuperApp connects schools, students, and families while offering edtechs a gateway to both LatAm and the U.S.
PicPay received approval from the Central Bank to boost the capital of PicPay Bank by R$322M—its second increase in 2025. The digital bank now has over 58M accounts and posted R$172M in profit in the first nine months of 2024, with revenue up 50% YoY to R$3.8B. It continues to expand its product portfolio and invest in generative AI.
Bemobi closed 2024 with R$589M in cash and plans to allocate R$200M to dividends while continuing its M&A strategy. The company saw 12.2% revenue growth to R$607M, and EBITDA rose 13.6% to R$176.5M. Now 57% of revenue comes from SaaS and payment solutions—up from 14% in 2019.
Fermaca will invest $3.7B in northern Mexico to develop a digital city and a fertilizer plant. The $2.7B Durango Digital City will include AI infrastructure, fiber networks, and a 350MW data center. An additional $1B will go toward the Vermachém green fertilizer plant. The projects are expected to create 30,000 jobs and boost regional development.
Deals:
Festpay raised R$1.8M from Investidores.vc to scale its cashless payment platform for school cafeterias. Originally built for events, the startup pivoted to serve schools with a plug-and-play system that uses QR codes and RFID wristbands. With over R$1M in processed volume, it aims to reach 250K students by 2026.
Loccus is launching two corporate venture programs—CVC and CVB—in partnership with MOA Ventures to invest in healthtech and agtech startups. Originally focused on agribusiness, Loccus shifted to diagnostics during COVID and now targets biotech, molecular diagnostics, and nanotech. Investments will range from equity to joint ventures.
Nomad has launched a new service to help Brazilian startups receive foreign investment with competitive exchange rates and 24/7 support. Inspired by its own fundraising experience, Nomad’s tech bridges Brazilian and U.S. financial systems, offering faster, cheaper, and more flexible cross-border transactions.
Turim acquired Vita and is merging it into Tori, its wealth management platform for clients with under R$100M. The deal includes cash and equity, and gives Gorila an exit. Tori now manages R$4B and gains Vita’s RIA license, offshore expertise, and technology. Vita’s B2B accelerator remains independent, with Turim as a minority investor.
WAS Co. secured $1.5M in pre-seed funding at a $10M valuation, with plans to raise a $15M seed round. The Mexican startup creates zero-emission cement and concrete from mining waste, tackling Monterrey’s pollution crisis. Backers include Garza Ponce and the Zambrano family. WAS expects $1M in revenue in 2025.
General news:
Apple and Google are being sued in Brazil for alleged financial exploitation and psychological manipulation in the game Hunting Sniper. The lawsuit, backed by neuroscientist Fabiano de Abreu, claims the game promotes gambling and pressures users into excessive spending. Apple and Google profit from in-game purchases but deny refund requests, shifting blame to the developer. The case could set a legal precedent for consumer protection in digital gaming.
Sankhya launched a dedicated HR division led by former Sólides CSO Alberto Lopes. The new unit integrates payroll and acquired solutions, targeting 200% growth in three years. Sankhya is expanding through acquisitions in corporate education and benefits, with IPO ambitions but a current focus on organic and strategic growth.
Jusfy has appointed Renato Sacramento (ex-Hotmart) as CPTO and plans to launch a fintech for legal professionals. Fresh off a pre-Series A that valued the lawtech at $30M, Jusfy is backed by MAYA Capital, SaaSholic, and others. The company aims to double revenue to R$50M in 2025 and grow its user base to 50K.
Worker’s Credit Program launched in Brazil, offering payroll-deducted loans for private-sector employees and MEI workers. Backed by the FGTS as collateral, the loans come with lower interest rates. Loan portability starts April 25, with broader access from June 6 via the Digital Work Card app. The program targets 19 million workers and could generate R$120B in loans over four years.
Cumbuca is shutting down its expense-sharing feature to pivot to a new, yet-to-be-revealed product. CEO Daniel Ruhman assured users this is a transition, not a shutdown. Accounts will close by April 30. Founded in 2021, Cumbuca raised over $3M from Lightspeed and Verve Capital and plans to launch new features like Pix Automático soon.
Deals:
MT Bank raised R$5M from Hiker Ventures to launch a financial management platform for small and medium retailers. Founded by the teams behind Cappta and Granito, MT Bank aims to combine payments, finance, and tax services, targeting 20,000 clients and R$6B in annual TPV by 2026.
Ualá raised an additional $66M in its Series E round, bringing the total to $366M. New support from TelevisaUnivision strengthens Ualá’s position in Mexico. The fintech plans to expand across LatAm and deepen its insurance offering with Allianz. Key backers include Tencent, SoftBank, Goldman Sachs, and Soros Fund Management.
I have asked you again 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.
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
APIX
Date: May 15
Location: São Paulo
Description: Over the last decade, APIX has become one of the most anticipated global events focused on APIs and Integrations and its role on business strategies. A dynamic day filled with knowledge sharing and networking for professionals seeking new connections, global trends, partnership opportunities, and valuable technical and business insights regarding Open Finance, Partner Ecosystems, Legacy Modernization and Digital Experiences.
MORE INFO SOON!!!
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: Canary Summit 2025, H4Results 2025, 16 events by StartSe, DeepTech Days (March), Argentina Tech Week (May)
After Market FL (PT ONLY) By Arthurito Faria Lima & Gui Zanin
Pitchbook: Q1 2025 Quantitative Perspectives: All Quiet on the Exit Front
Bloomberg Tech: How the AI boom created the most valued monopolies in history
Adolescence (Netflix)
Atras do Retorno: Podcast by Julio Vasconcellos (Atlantico VC)
"AI is quite possibly the most important—and best—thing our civilization has ever created, certainly on par with electricity and microchips, and probably beyond those." Marc Andreessen