LatAm Weekly Tech Update
#46 - LTF22, Startups Fever, Inter goes to Nasdaq, deals of the week... and more!
Happy Sunday!
This week was busy – and very insightful. We had the pleasure of participating in Riverwood’s Latam Tech Forum 2022 (LTF). I had previously heard that it was one of the best gatherings in the LatAm tech ecosystem – and now I can say first hand that it is true. An invite-only and confidential forum gathers the best of the industry. Very happy to see Itau BBA, the Company I work with, as one of the sponsors of this great event!!
Yesterday I was also the host of three panels in the event Startups Fever, organized by Startups.com.br; Conta Simples and StartSe. Over 600 people attended in person, in São Paulo – as key themes from blockchain to attraction of talent were discussed. Congratulations to the event’s organizers and panelists – already looking forward to next years edition! If you were not able to make it – don’t worry – there is a great coverage of everything that happened in the portal startups.com.br. Take a look!
Now onto the highlights of the week. In Brazil, a recent study by Serasa Experian showed that the delinquency rate reached a peak – there are currently over 66 million Brazilians in default, the highest number since the survey started. This represents a total debt of BRL 271.6 bn. Fintechs should be on the lookout.
Also this week, Endeavor predicted that startups in Latin American will receive less rounds above the USD 50mm mark in 2022. During last year, 79% of venture capital committed in LatAm was part of rounds of more than Usd 50 mm; four times more than in 2020. As valuations in the tech landscape continues to adjust, the number for this year should be significantly lower.
Now, let’s go ahead to this week’s news…. Please note the new section on what I learned from readers - continue to send interesting articles my way!
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Created with the mission of offering fairer rates and rights for delivery people and restaurants, startup AppJusto has raised BRL 1.8 mm+ in an equity crowdfunding round on the Kria platform. The funding attracted 939 investors – a record number for this type of raise in Brazil. The platform has ~17,000 registered couriers, of which 3,000 have already been approved. More than 300 restaurants are already in operation (out of a total of 900 registered). Since its foundation, the startup has made more than 8,000 deliveries and has 22,000 users.
MercadoLibre’s figures from May 2022 showed that the trends of the past two months are being sustained at a higher magnitude. The NPL ratio reached a peak of 28%, representing a 3.7-pp monthly deterioration, while the credit portfolio remained virtually flattish MoM.
CapTable Brasil, equity crowdfunding platform for startups, has just launched its educational arm: CapTable Academy. The first educational initiative focused on C-level attendees is called Startup Investor Club. I am happy to be one of the teachers - alongside Eduardo Benjamin Galanternick, from Magazine Luiza; Larissa Quaresma, CGA, from Empiricus, and others.
Ebanx announced a 20% cut of its staff, which is equivalent to ~340 people out of a total of 1,700+. The reduction is the result of a business restructuring that led the company to focus on its main (and original) business: international payments. As a result, structures were reformulated and some projects were discontinued. The company did not give more details.
QuintoAndar officially launched its operation in Mexico under the name Benvi. The new brand will be used in all international markets for the proptech, but the name 5A is maintained in Brazil. In the first 6 months, the idea is to bring supply and demand to the platform, according to Joao Chueiri, CMO at 5A
Brazilian fintech Vórtx created a management platform specialized in ETFs. The objective is to create an ecosystem focused on the development and structuring of these products.
Payments and banking technology platform Dock had an increase in its market share of credit and debit card transactions from 1.5% in 2019 to 6.7% in Q1 2022. The company attributes the growth to both the increase in its customer base and the momentum generated by the pandemic, which boosted the use of electronic payments by Brazilians. In all, the company's platforms moved BRL 44.2 bn in the first three months of the year in card transactions.
Brazilian Surfing champion Gabriel Medina launches its own VC Firm.
Rather than just being a LP in other funds, Medina opted to lead a new fund to focus on web3, crypto, NFT and the metaverse.
The largest cryptocurrency broker in the US, Coinbase bets on Brazilian regulation and popularization of the segment to gain market share in the country. The company, which already has 40 people in Brazil, is preparing its official launch in the coming months, despite the most recent “crypto winter”. The broker employs more than 5,000 people and has close to 98 million users in 100 countries. In Brazil, the operation is led by Fabio Plein, former PicPay and Uber Eats, who intends to place Coinbase among the leaders of the local market, today in the hands of Binance and MB (former Mercado Bitcoin).
Banco Inter migrated its shares in the Brazilian stock exchange B3 to the Nasdaq in a never before seen structure. Now called Inter & Co., the bank will continue to be listed in B3 through BDRs. The objective of the transaction is to expand its footprint in the US market.
Lemon Energia, Brazilian startup focused on providing electric bill savings and sustainable energy through a fully digital platform and frictionless user experience raised USD 11.6mm in a round that had the participation of Kaszek and Creditas.
Early stage fund MAYA Capital, founded by Monica Saggioro and Lara Lemann, raised its second venture capital fund to pursue opportunities in one of the most challenging times of the Latin American venture capital market. The Brazilian fund has secured $100 million – more than double of its first fund of $40 million in 2018.
Eva, Mexican femtech focused on a breast cancer detection bra equipped with tactile sensors to map the surface of the breast and surrounding areas, along with its texture, color, and temperature raised a USD 7mm Series A round with the participation of Browder Capital and MBX Capital.
What did I learn from readers?
I recieved a very good article from a reader about how private equity groups are increasingly buying companies that they already own. Critics point to conflicts of interest within these deals that allow managers to reap great financial rewards. Thank you Patrick O’Grady, Founding Partner at Vectis, for sending over this great read.
Selling to Yourself: the private equity groups that buy companies they own
What am I reading?
The Problem with Randomness - old but gold!
What did I listen/watch?
JOB POSTS
Here is what top tech companies are looking for…
HR Coordinator - Rentbrella
Tech Content Analyst - Undisclosed firm (reply to this e-mail)
Early VC Investor - Undisclosed firm (reply to this e-mail)
Banking Analyst: Nomad
Growth Marketing leader - CapTable
Head of Sales - Rural
*respond to this newsletter if you want to post a job or if you have interest on the openings above*
Quote of the week:
“A mother is your first friend, your best friend, your forever friend.” Unknown
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