I find myself in São Paulo, where the weather has been capricious—dancing between a cold snap, leaving me with a scratchy throat, and a sweltering heatwave all in the span of a single day. This past week has been as unpredictable as the elements. But let’s focus on what truly piques interest—this upcoming week is buzzing with events. The FII PRIORITY event is underway in Rio de Janeiro from June 11-13, the first iteration in Latin America under the theme of “Investing with Dignity.” Meanwhile, São Paulo is abuzz with Volpe’s Tech Breakfast, Cubo’s VC Vision gathering, ABVCAP’s Venture Day, just to name a few. While I won’t grace all these events in person, rest assured, my network is alive with insights. Anticipate my forthcoming summary of the eventful week. Stay tuned!
May’s Tech Venture Figures
As we hurtle through the year, reaching the mid-point with Q2 drawing to a close, it’s imperative to glance at the tech sector’s May metrics in the Latin American landscape. According to Sling Hub’s data analysis, May illustrated an upward trajectory. Leading the charge was Brazilian fintech CloudWalk, amassing a sizable $308 million in receivables funds, clinching the title for the largest funding round of the year. Noteworthy rounds were also secured by energytech Solfácil, raking in $121.2 million in receivables funds, and fintech Baubap, locking in $120 million in debt, forming the top three for 2024 so far.
The infusion from CloudWalk significantly heightened investment volumes in May for Latin America and Brazil, hitting $847 million and $548 million, respectively. Both the region and the nation witnessed Month-over-Month (MoM) and Year-over-Year (YoY) volume escalations. Compared to May 2023, funding volumes surged by 179% in Latin America and an impressive 259% in Brazil.
Delving into equity rounds exclusively, the funds accrued totaled $264 million in Latin America and $167 million in Brazil, signaling a 23% and 38% YoY growth, respectively. However, the number of funding rounds experienced a slight dip, with 77 occurrences in Latin America and 48 in Brazil, marking a 12% and 9% YoY downturn. Additionally, Brazil saw the median round size dwindling to $1.2 million in May, a 60% drop from April figures, yet maintaining a stout 145% uptick YoY.
On the mergers and acquisitions (M&A) front, the tally stood at 21 acquisitions, denoting a 40% surge from April’s count of 12 transactions. Of these, 13 acquisitions featured Brazilian entities, akin to the April stats. Noteworthy activity in acquisitions stemmed from nations like the Netherlands, Spain, and South Africa within the region, with no mergers recorded, mirroring April’s scenario.
Monday Highlights
General News:
- eB Capital, a Brazilian private equity firm, inks a pact with Saudi Arabia for private investments. The agreement charts a course for eB Capital and MISA to orchestrate a series of gatherings and business dialogues uniting private investors from Brazil and Saudi Arabia to deliberate prospects, spotlighting alternative investments, climate considerations, food security, private equity, and private credit.
- Brazil’s Positivo integrates Algar Tech MSP, envisioning a comprehensive “one-stop shop” for IT infrastructure. The company foresees its IT services and solutions arm’s revenue surging from 8% to 18% of total revenue by 2024.
- Ualá bids farewell to its COO Mariana Franza, a prominent figure in the Latin American fintech scene. Mariana Franza, an erstwhile Goldman Sachs luminary, concludes a three-year tenure as the chief operating officer of Argentine fintech Ualá without offering explanations.
- Brazil’s budding startup, Budz, harnesses artificial intelligence to guide dog owners in training their furry companions. Operating via an app in its pilot phase, the startup dispenses insights on training techniques and pet care. By year-end, Budz aims to engage 250,000 users, with 10% opting for the subscription service.
- Shein prepares for a potential IPO in the UK, seeking an offering that values the company at around £50 billion, eyeing one of the most substantial IPOs in London Stock Exchange’s annals.
- Incentiv, a Brazilian platform interlinking companies, individuals, and socio-environmental projects via tax incentive regulations, secures acceleration through Brazil’s Turistech Hub program. The initiative injects R$ 50,000 into Incentiv to drive a proof of concept and invigorate Brazilian tourism through technological avenues.
Deals:
- SYN, the brains behind a healthcare platform seeking to democratize medical procedure access, amasses $1.5 million in Early-Stage Venture Capital funding.
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Tuesday Insights
General News:
- Pix catalyzed payment transactions in the country throughout 2023. Card transactions witnessed growth, albeit at a slower velocity. Meanwhile, activities involving bills and interbank transfers saw a downturn during the period. These trends unravel through the Retail Payments and Cards Statistics in Brazil disclosed by the Brazilian Central Bank this week.
- Microsoft embarks on another downsizing spree, trimming hundreds of positions from its Azure cloud computing division.
Financial Market Insights: Weekly Roundup
Wednesday – Market Moves and Mergers
Market Trends:
- A recent study by EY forecasts a resurgence of IPO activity in Brazil during the second half of the year. Despite a decrease in the number of IPOs in the first quarter, revenue surged by 7% from $22.1 billion to $23.7 billion.
- Charlie, a Proptech managing R$2 Billion in AUM, is focusing on catering to corporations and extended stays. It offers fully furnished apartments with linen and cleaning services, targeting a specific market niche.
- Sólides appoints Juliana Tubino as Board Advisor to optimize HRTech operations and expand its ecosystem, demonstrating a commitment to enhancing technological infrastructure.
Notable Deals:
- Kanastra successfully secures R$110 million in a Series A funding round led by KASZEK, with participation from various prominent investors. This influx of capital will enable Kanastra to further its growth and development initiatives.
- Semexe, a marketplace specializing in used sports equipment, collects a R$4 million investment from Hiker Ventures to enhance Loopify, its re-commerce platform. This strategic investment aligns with AF Invest’s strategy of supporting startups with potential for significant growth and value creation.
- Cerc acquires a majority stake in the receivables trading platform, Antecipa, in its first acquisition move. The involvement of XP, an existing investor, signals confidence in the strategic direction and future prospects of this transaction.
Thursday – Innovations and Collaborations
Innovations and Collaborations:
- Vindi emerges as the new financial services arm of LWSA (Locaweb) following a consolidation of operations. This strategic move positions Vindi to delve into credit and digital accounts beyond payment services, signaling a broader financial services agenda.
- Human Robotics introduces cutting-edge self-service and telepresence robots as part of its latest innovations, reflecting significant growth and a projection of increased revenue. The trajectory of Human Robotics showcases a clear commitment to advancing technological boundaries.
- Peruvian startup Artificio pioneers a benchmarking platform for autonomous driving in complex urban environments, demonstrating a keen focus on addressing critical challenges in the industry.
Firm Collaborations:
- Livelo forges a partnership with Genial to enable “points transfer,” providing customers with added flexibility and benefits. This collaboration aims to enhance customer loyalty and engagement through innovative point conversion mechanisms.
- Instacart initiates a new $500 million share repurchase program, signaling confidence in its growth trajectory and a strategic move to boost shareholder value. This program underscores Instacart’s commitment to enhancing shareholder returns.
- Bossa Invest mobilizes investors for its third fintech pool, with a target of raising up to R$20 million for investments in promising financial startups. This initiative aims to foster entrepreneurship and innovation in the fintech sector.
Friday – Strategic Updates and Market Movements
Strategic Developments:
- The launch of the Temu website in Brazil marks a key milestone in the entry of the e-commerce platform from the Chinese group Pinduoduo (PDD) into the Brazilian market. Known for its diverse product offerings at competitive prices, Temu is poised for rapid growth in the region.
- Brada introduces AprovAI, an AI platform designed to streamline grant proposal creation for social impact projects. This innovative tool simplifies the grant application process, enhancing efficiency and impact in the social investment space.
- SoftBank prepares for the IPO of Yanolja, an Asian traveltech company, with a target fundraising of up to $400 million. This strategic move underscores SoftBank’s commitment to supporting promising startups in the travel and hospitality sector.
- Carta explores a new funding round amid talks for a significant downround with an estimated valuation of $4 billion. This development highlights Carta’s strategic approach to funding and financial management as it seeks to accelerate growth and market expansion.
Recent Investments:
- Patria Investimentos advances its real estate portfolio by acquiring Colombian asset manager Nexus Capital, adding $800 million under management. This acquisition strengthens Patria’s position in the real estate market, aligning with its ambitious growth targets ahead of schedule.
Exploring Financial Shifts in Latin America
The Rise of Private Equity in Latin America
Private equity in Latin America is witnessing a seismic shift as companies like PowerSchool and Waystar undergo significant financial developments. PowerSchool, a cloud-based education software vendor, is being taken private in a hefty $5.6 billion deal by investment firm Bain Capital. This acquisition is part of a trend where private equity firms seek opportunities in underperforming enterprise software companies, aiming to leverage their potential for growth and profitability.
On the other hand, Waystar, a provider of financial management software for hospitals and doctors’ practices, has made waves with its successful initial public offering (IPO). Raising $968 million through the sale of 45 million shares priced at $21.50 each, Waystar now boasts a fully diluted valuation of $3.69 billion. This move highlights the growing interest and confidence in the tech sector within the region.
Insights into Key Tech Events in 2024
As Latin America’s financial landscape evolves, so do the opportunities for networking, learning, and collaboration in the tech and investment sectors. Several upcoming events provide platforms for industry leaders and professionals to engage and exchange insights:
ABVCAP Experience
All events held in the calendar year of 2024
Dates: June 10 – June 12
Location: Sao Paulo
Description: ABVCAP Experience stands as a prominent event in the private equity and venture capital sector in Latin America, offering extensive networking opportunities, valuable insights through various sessions and workshops, featuring over 50 speakers and expecting around 600 participants, fostering a comprehensive view of the alternative assets industry.
Volpe Capital Tech Breakfast
Date: June 10
Location: Sao Paulo
Description: Volpe Capital hosts a exclusive breakfast for LPs on June 10th, focusing on trends in Latin America for the Venture Capital and technology markets. The event promises engaging discussions and networking opportunities at the Skye Restaurant & Bar at the Unique Hotel in São Paulo.
FII PRIORITY Summit
Dates: June 11-13
Location: Rio de Janeiro (Copacabana Palace)
Description: The FII PRIORITY Summit, with its theme “Invest in Dignity,” organized by the FII Institute, delves into investments in ecological transition, technology, innovation, and social inclusion as catalysts for a new global order focusing on dignity for all. The gathering will see global leaders, government officials, investors, CEOs, entrepreneurs, and cultural icons discussing vital topics.
VC Vision by Cubo
Dates: June 14th
Location: São Paulo – Cubo Itaú
Description: VC Vision by Cubo is a flagship event addressing fundraising and liquidity challenges in the Venture Capital industry in Latam, with sessions including a Keynote with an international Limited Partner and a panel on liquidity covering perspectives on IPOs, M&As, and Secondaries, alongside roundtable sessions for VC Firms and Institutional Investors.
World Agri-Tech South America Summit
Dates: June 18-19
Location: Sao Paulo
Fin4She
Date: June 18
Location: Sao Paulo
Description: Fin4She focuses on promoting gender diversity and inclusion in the financial sector and aims to empower women in finance through discussions, panels, and networking opportunities.
MIT Technology Review: EmTech Energy Brasil & Energy Summit
Date: June 17-19
Location: Rio de Janeiro
Description: This global event centers around the future of energy transition and sustainability, offering engaging discussions, masterclasses, and networking opportunities with industry leaders to promote innovative solutions in the energy sector.
Tech Trends Sao Paulo 2024
Dates: June 25-26
Location: Expo Center Norte – São Paulo-SP
Description: As the Tech Trends Sao Paulo 2024 unfolds, it serves as a convergence point for individuals seeking to translate ideas into reality through technology and innovation. This event unites the innovation ecosystem, bringing together key stakeholders for impactful connections, business prospects, and high-quality content.
Immersive Tech Experiences Await in Latin America!
Febraban Tech: Discovering the Intersection
Date: June 25-26
Location: São Paulo
Description: FEBRABAN Tech is a crucial rendezvous for professionals and innovators in the financial sector, exploring the nexus of technology and banking. This event promises a peek into cutting-edge advancements, trends, and solutions in the realm of financial technology, offering a stage for networking, knowledge exchange, and collaboration.
LAVCA Tech Brasil 2024: Where Innovation Resides
Date: August 21
Location: Google HQ na Faria Lima
Description: LAVCA Tech Brasil gathers the networks of Brazil-focused VCs and tech investors annually in São Paulo. With keynote fireside chats, breakout sessions, and networking opportunities, this meeting aims to forge lasting connections among investors active in the region, fostering innovation and growth.
Brazil Tech Summit: A Global Spectacle
Date: August 9
Location: São Paulo
Description: This international summit boasts a roster of 100 global speakers and a focus on energizing entrepreneurial and business ecosystems in emerging markets. Dive into panel discussions on Brazilian trends, disruptive industries, and the transformative impact of technologies like artificial intelligence and blockchain.
Digitalks Expo: Where Innovation Thrives
Date: August 23-24
Location: São Paulo
Description: This prominent event unites professionals from diverse tech sectors to delve into digital transformation, innovation, and emerging technology trends set to shape the industry’s future.
DevOpsDays Rio de Janeiro: Cultivating IT Excellence
Date: August 17
Location: Rio de Janeiro
Description: As part of the global DevOpsDays series, this conference zeroes in on IT enhancement, featuring sessions dedicated to DevOps culture and best practices, nurturing a culture of continual improvement.
Colombia Tech Week: A Hub of Innovation
Dates: August 26 – September 3
Location: Bogotá and Cali
Overview: Colombia Tech Week 2024 promises to be a marquee event in Latin America’s tech landscape, uniting startups, venture capitalists, accelerators, corporates, and global tech communities with the goal of positioning Colombia as an epicenter for investment and innovation, fostering connectivity and business opportunities across the region.
Chief Data & Analytics Officer Brazil Live: Unveiling Data Trends
Dates: September 10-11
Location: São Paulo
Description: Geared towards data and analytics professionals, this conference sheds light on the latest trends and technologies in data management and analytics, offering a deep dive into the evolving landscape of data-driven decision-making.
Sao Paulo Tech Week: Celebrating Tech Innovation
Dates: Sept 16-22
Location: São Paulo
Description: Experience a multitude of events spotlighting tech innovation in Latin America, all within the vibrant city of São Paulo.
Exploring Major Financial Events in Latin America
Venture Capital Summit in São Paulo
Dates: Sept 25-26
Location: São Paulo
Details: The Bossa Summit 2024 is a critical nexus for the Venture Capital domain, uniting over 400 speakers, diverse networking prospects, and an array of workshops and mentorship programs. This summit promises to bring together more than 10,000 participants, presenting close to 200 hours of premium content on commerce and cutting-edge innovations.
Private Capital Conclave in New York
Date: Oct 8-11
Location: Conrad NY Downtown
Overview: LAVCA Week 2024 assembles esteemed private capital investors from Latin America and worldwide annually for substantial dialogues and exclusive meetings covering the latest trends in private equity, venture capital, and other private capital strategies. Participation in LAVCA Week is thoughtfully curated and capped, with special rates for LAVCA Members up for grabs until August 29, 2024.
Innovative Marketing and Technology Event in São Paulo
Date: Oct 22
Location: Sao Paulo
Insights: MMA Innovate Brasil 2024 is set to be a notable juncture in the marketing and technology milieu of Latin America. This event is dedicated to exploring the interstices between technology and imagination, showcasing some of the most inventive minds in the sector, including CEOs, CMOs, and top-tier executives from various fields, along with scholars and tech experts.
Venture Capital Focus on Healthcare in Rio de Janeiro
Date: Nov 6
Location: Rio de Janeiro
Insight: The #fswk24 – O Momento Atual dos VCs na Saúde event zeroes in on the current scenario and possibilities for venture capital investments in the healthcare sphere. Participants will glean insights into the latest trends, hurdles, and tactics for backing health tech startups and pioneering healthcare solutions.
Additional Events
Others: Minas Summit, Fintech View, Score Summit, Roga DX
Note: If you wish to have your event featured, kindly dispatch an email with event details following the specified format: title, date, location, description, and a link for further information.
Cultural Exploration
Current Inspirations
Food for Thought:
“How people treat you is their karma; how you react is yours.”
— Wayne Dyer
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