Happy Sunday!
Winter is here?
Last week I mentioned the latest CB Insights State of Venture Report which showed a decrease in global venture funding in Q122 - down 19% from the previous quarter’s funding. This week, a new data focused on Brazil came out: private investments during the first quarter reached BRL 11.6bn, while private equity grew 173% in the period, venture capital fell 27%. Another sign that things in VC might be cooling off…
Coupled with this, I also read an interesting piece on startups.com.br that highlighted some interesting data that show that winter might be coming. Facily, for example, Brazilian startup that reached its unicorn status only 6 months ago, fired 260 people of its staff, out of 860 (representing a 30% cut). Liv Up, another relevant foodtech in the region cut 15% of its staff in February – the same happened with proptechs Quinto Andar and Loft.
According to global media company focused on the venture world and technology, The Information, 2000 employees were let go last month in the Silicon Valley. Moreover, this week CB Insights also reported specific data on retail funding - which reached nearly $24B in Q1’22, an11% decrease compared to Q4’21, as deals declined 7%.
While last year we saw exploding valuations and gigantic rounds – this year we might go through a correction. It is important to note, however, that high caliber companies continue to raise considerable amounts – take Latitud, for example, which recently raised USD 11.5mm from A16z in a seed round recently.
However, high interest rates, political uncertainty and the war are all elements that reduce investors’ appetite for risk. As a direct consequence, the amount they are willing to put at stake for startups diminishes. Procede with caution!!!!
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: All of the information you read here is based on public websites / databases or news. I would never let out a private information that I happen to be aware of prior to the Company’s or Investors’ announcement.
Brazil’s Rock Content acquires WriterAccess, north American marketplace platform for content producers, in content marketing consolidation move. With the acquisition, the company expands its global network of talents and brings to its portfolio around 2,000 customers – among them brands such as Oracle, Cisco, Bank of America, DHL – and more than 500 agencies. Numbers on the acquisition were not disclosed.
Itau Unibanco acquires a 12.82% participation at Orbia, online marketplace where farmers can buy seeds, fertilizers, pesticides, and also trade soy, corn, and coffee. Founded in 2019, the company hit the BRL 200mm sales mark in 2020 and an impressive BRL 902mm last year. Orbia is the biggest agro marketplace in the country and the acquisition will allow Itau to offer better credit rates with more efficiency for producers plugged in the platform.
Proptech aMORA, brazilian startup that allows prospective home buyers to pay a small down payment along with monthly fees before making any larger purchasing decisions, raised USD3.2mm in a Seed VC round with GFC, Caravela Capital, Latitud Capital and other angel investors.
In March, Brazilian open banking had a total of 204 million interactions (i.e – API calls) – representing a 111% increase when compared to February. By means of comparison, the UK (which is considered an example in terms of open banking) registered 38.4mm API calls in the same period. That is, Brazil’s volume is already more than 5x greater than Britain’s – and we are just getting started!
Warren, Brazilian nvestment platform that simplifies finances and transforms the habit of investing, starts operating on the structuring and distribution of fixed income products. Gustavo Ruiz, partner of the startup and former Head of B2B, will be the Director responsible for this part of the business.
Floki, brazilian startup that provides a smart and autonomous procurement system for fragmented food service retailers raised USD 9mm in a Seed round with the participation of Valor Capital Group, Iporanga Investimentos and Latitud.
Morado, two-month-old Colombian startup that aims to digitize beauty salons in Latin America by reinventing its current supply chain through vertical software technology and next day deliveries, raised its Pre-Seed Round of USD 5mm with funds such as A16z, QED and Tiger Global. Morado aims to be the everything store for beauty shops – a place where they can find everything they need to operate (from hair products, to uniforms and cleaning products).
The São Paulo court received anonymous claims against IFood - that the company is secretly financing marketing campaigns to go against the delivery employees’ revindications for better working conditions.
CVC, one of the biggest tourism companies in Brazil, announces new investments in technology and artificial intelligence. The Company launched an app to personalize the journey of its customers.
What am I reading?
CB Insights: Why IT security leaders are prioritizing data monitoring
Data monitoring solutions have seen strong market momentum and widespread industry leader activity in the data security space — making it an industry worth prioritizing.
CB Insights: The metaverse could be tech’s next trillion-dollar opportunity: These are the companies making it a reality
What did I listen/watch?
BriefCast, interview Rafael Maia, CRO da Flash Benefícios, company that recently raised a USD122mm Series C led by Battery Ventures and Whale Rock.
Latitud # 86– Investing in the Future of LatAm Tech - interview with Angela Strange, A16z partner
White Hot: The rise and fall of Abercrombie & Fitch (documentary - very worth watching - especially for those, like myself, who were obsessed with the brand when younger.
“True leadership stems from individuality that is honestly and sometimes imperfectly expressed… Leaders should strive for authenticity over perfection.” Sheryl Sandberg
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