Happy Sunday – and happy Carnival!
This has been a challenging week to pay attention to anything other than the situation in Ukraine. Even though this is not a political newsletter - my thoughts go out to all of the people of Ukraine.
I have already mentioned here multiple times the importance of fintech in LatAm – and how I don’t envision this trend (both in terms of funding and # of startups) fading in the next couple of years. I have never explicitly stated, however, why the region is so susceptible to the theme.
The obvious reason that comes to mind is the fact that there is so much to do here given the historical concentrated market. Other key points, however, are worth mentioning. First and foremost, it is crucial that the regulatory bodies, such as the Brazilian Central Bank, are supporting and fueling competition. The agenda started a couple of years ago – and has been just accelerating. The boldness of our Open Banking and Open Insurance and developments such as PIX are clear examples.
Another interesting point I came across this week is data on the openness of consumers in the region towards new technologies within the financial sector. A research published by Accenture found that 43% of the Brazilian consumers stated that they were using and are open to new digital financial services, vis-à-vis a 7% rate in Japan, example.
The report defined us as "tech-savvy risk-takers" when it comes to the adoption of new technology in financial solutions. The fact is, even though we have seen a lot of development in the sector, we are actually just getting started. Startups on financial services will keep up emerging – both a B2B perspective as from a final consumer point of view.
P.S – Remember when I mentioned we reached the 4 digit mark in number of unicorns in the world? Well, now we are already at 1200. Keep it coming!
Now – let’s go ahead to the week’s news… Please bear in mind that these are strictly my opinion, based on my background and personal interests. Feel free to share this newsletter with anyone who might be interested – to subscribe, just click on the link below!
Avenue Securities, Brazilian founded online brokerage firm intended to provide easy access for international retail investors interested in securities traded on U.S. exchanges , will launch its platform for investments in crypto in the upcoming weeks. There will be around 30 products – starting with the simple ones such as Bitcoin and Ethereum. There will be no need to open a new account with the firm to invest in crypto – the clients can use their existing account, therefore being able to visualize traditional investments & alternatives in one screen.
Monkey Exchange, Brazilian fintech focused on credit card receivables, expect to have around USD100bn passing through their platform in the year of 2022.
Crypto continues to be one of the main focuses of the Brazilian Central Bank. This week, the entity discussed the transactions that can me done with crypto – and also its risks. There are currently 3 preliminary acts around the theme that aim to increase transparency, thus obliging crypto exchanges to share selected information with the regulatory bodies.
After losing around 85% of its market value in one year, Thiago Piau, Stone’s CEO, announced that the company is definitely not for sale. Currently, the company is worth BRL17 billion, versus a BRL 134 billion valuation in the beginning of 2021.
Foxbit, Brazilian bitcoin exchange platform, raised BRL110mm from OK Group, one of the main crypto exchange in the world.
Bertha Capital and Multilaser, manufacturer of electronics and computer supplies in Brazil, raise a BRL200mm CVC fund to invest in new startups that should be complementary to their businesses.
Femtech OYA Care, a digital women's health clinic offering fertility assessment services, raises BRL 16mm in a round led by Susa Ventures
Roberto Campos Neto, President of the Brazilian Central Bank, announced that the country’s digital currency pilot will be launched in the second semester of this year.
Valoreo, Mexican e-commerce platform that acquires, operates, and scales e-commerce brands across Latin America, raised USD80mm in a round led by L Catterton. The use of proceeds will be to acquire new brands in LatAm and also to boost the success of existing brands.
Kraft Heinz and NotCo partner up in an unconventional joint venture – the Kraft Heinz Not Company aims to create new plant based products leveraging Not Co’s technology and Kraft Heinz’s distribution and global presence
Celcoin, Brazilian fintech that provides utility payments, recharges, and others services without the need of a bank, announced another acquisition – Flow Finance – B2B company that provides tech infrastructure for credit through APIs.
Picpay accelerates its marketplace strategy with new partnerships. In the year of 2021, Picpay’s loan portfolio reached BRL 780mm, vis-à-vis just BRL1 mm in 2020. As for credit card issuance, the number went from 2mm last year to 12mm in January 2022. The new partnerships include Guiabolso, Creditas, Digio, Emprestimo Sim e ProtoCred in their marketplace.
Kaszek backed Femtech, Theia, whose mission is to support new moms and their babies through technology, humanized approach to birth, and high quality healthcare, opened their first clinic in São Paulo
Global insurtech companies raised over USD14bn in venture funding last year, representing a 105% increase when compared to 2020. Brazil is expected to attract major investments this year as Open Insurance (agenda similar to Open Finance) gains traction in the region.
What am I reading?
What did I listen/watch?
Quote of the week:
“Success in life is not for those who run fast, but for those who keep running and always on the move.” Bangambiki Habyarimana
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