Happy Easter Monday!
First of all - I had a technical issue yesterday. Sorry for the delay here, but better late than never! There were lots of deals this week - and relevant news, so I could not simply skip this one.
After a record breaking 2021, global venture investment cools in Q1’22, even as the global unicorn club reaches a new high. CB Insights released its State of Venture Report for the first quarter of the year. Global venture funding reached $143.9B raised across 8,835 deals in Q1’22, down 19% from the previous quarter’s funding. Despite the slowdown, Q1’22 marked the fourth-largest quarter for funding on record. Selected highlights below:
The global unicorn count hit a new high in Q1’22, reaching 1,070 — up 62% YoY, even as new unicorn births decreased 15% QoQ to 113.
M&A exits increased for the 7th straight quarter, hitting a record high of 2,983 in Q1’22. IPOs and SPACs, however, dipped substantially, with both decreasing by more than 40% QoQ — perhaps due to the lackluster performance of IPOs over the past year.
The US raised the most in venture funding ($71.2B), followed by China ($12.7B), and the United Kingdom ($9.2B)
Tiger Global Management was the top investor in Q1’22, investing in 120 companies. It was followed by Gaingels (96 companies), and Global Founders Capital (77).
Moving on to a completely different subject – if I could choose one recurrent word you have read here since SXSW, the word would be “metaverse”. This week, we got a taste of how exactly Facebook hopes to monetize its own Metaverse.
The Company will now begin allowing goods to be sold in its Horizon Worlds social experience, its latest social VR app which it hopes to grow into a multitrillion-dollar empire. The controversial note will be that Facebook will take a 25% cut of goods sold on the platform, which doesn’t sound all that problematic until you learn those goods will also separately be taxed by a 30% cut taken from the App Store. Taken together, it means that virtual goods sold on the Horizon platform in VR will come with a whopping 47.5% tax attached to them. Hopes down if you thought the virtual economy would allow us to escape taxes….
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!
PS: Thank you for sharing this newsletter with colleagues and interested parties – I am very happy in reaching the 1000 reader mark (with a high profile and selected list). I truly hope it is only the beginning! Keep it coming!!!!!!!!
Solfacil, Brazilian startup that develops a technological platform for financing solar energy, raised USD 100.3mm in a Series C round with QED Investors and Valor Capital Group.
Stark Bank, Brazilian open banking platform that helps companies of any size scale their operations, moving money through a secure set of banking APIs that can be connected to any existing software, raised USD 45mm in a Series B round with the participation of Ribbit Capital and Bezos Expeditions. The latter, being the first investment by Jeff Bezos’ fund in Brazil (the first one in LatAm was NotCo.)
Itau Unibanco will expand its credit offer on its app Iti - focusing on balancing growth and profitability.
Techfin: Itau Unibanco announced a joint venture with software company Totvs. Itaú Unibanco will pay R$610 million to TOTVS for its stake and up to R$450 million as earn-out after five years, subject to the achievement of the targets aligned with the growth and performance goals. Additionally, Itaú Unibanco has committed to contributing to funding current and future operations, providing credit expertise and development of new products at Techfin.
Rodrigo Baer and Marco Camhaji, formerly responsible for the early stage strategy of Softbank in BrazilLatAm, announced the spin-off of their fund into their new asset management firm, Upload Ventures. Both the assets and their invested companies migrate as well. Softbank announced it will continue with its commitment of USD 100mm per year in the strategy.
MadeiraMadeira acquired IguanaFix, online marketplace for maintenance, repairing, cleaning and installing solutions in which customers can select services connecting with verified professionals that guarantee a high-quality service. Terms of the transaction were not disclosed.
UOL Edtech acquired Qulture.Rocks, a software company that builds people management applications for companies enabling organizations to implement 1:1s, goals/OKRs, performance reviews, 360-degree and ongoing, on-the-spot feedback and recognition. The terms of the transaction were not disclosed.
Galena, Brazilian edTech whose mission is to unlock concrete opportunities for development and insertion in the job market for millions of young individuals, raised a Series A round of USD 16.7mm with investors such as Arminio Fraga, David Velez and Globo Ventures.
Unico, startup that develops solutions such as facial recognition to authenticate identities, electronic signature, and digital admission to create and protect Brazilian’s digital identities, raised USD 100mm in a Series D round with GS Growth, GA and Softbank Group.
Theia, Brazilian HealthTech that offers a online platform specializing in preconception, prenatal care, delivery, and postpartum care, raised USD 6.4mm in a Seed VC round with the participation of 8VC and Kaszek Ventures.
Headline Venture, firm led by former Redpoint Ventures partner Romero Rodrigues, now part of XP Asset, intends to raise BRL 834mm.
Rumors started during the Easter holiday in Brazil, this past Friday. The confirmation came on Sunday (at least one good thing about delaying my newsletter). Paulo Passoni and Shu Nyatta, the two managing partners of the Softbank LatAm Fund, have announced their departure from the operation.
They will be replaced by Alex Szapiro, former CEO of Amazon Brazil and SoftBank‘s operating partner for Latin America, and the Mexican Juan Franck, SoftBank’s head of investments in Mexico. Passoni and Nyatta intend to launch their own Fund after their non-compete… excited to see what’s next for them!!
What am I reading?
CB Insights: State of Digital Health Q1’22 Report
Itau BBA: Banking & Financials - US Investors looking further out (notes from the road)
What did I listen/watch?
Podcast Itau Views Episode 15 - Venture Capital- I recored a podcast with Marcos Toledo from Canary and Laura Constantini from Astella with our host Marcelo Serrano.
Podcast NoMaximo20 on SXSW - I recorded another podcast talking about main lessons from the event!
Quote of the week:
“The more you love your decisions, the less you need others to love them - it is a sign of maturity. Keep your business to yourself.” Unknown
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