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Brazilian startups receive record investments of R$ 5.2 billion in the first quarter

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The latest report from Inside Venture Capital, from the innovation hub Distrito, pointed to a record investment in Brazilian Startups in the first quarter of 2021.  The data pointed to US$ 5.2 billion dollars (more than 27 billion Reais) were received by companies, compared to US$ 3.5 billion (close to R$ 18 billion) in the same period last year, an increase of 40% in the total invested.  It is the best quarter in the history of the venture capital market in Brazil.

These $5.2 billion were divided into 339 stimuli to various startups. The stimuli in the first half of 2021 were 35% higher than in the same period last year. Fintechs spearheaded the report as the segment that had the most investment, with $2.4 billion in 72 transactions.

In second place are the startups in the real estate sphere, with US$ 829.4 million in 11 rounds. June was the month with the largest capital invested in startups in the country’s history, with 63 stimuli and U$ 2 billion (almost R$ 10 billion) invested.

Hrtechs, startups in the human resources sector, also stood out, with US$ 220.6 million obtained in the month of June alone. In the same month, investment in fintechs was US$ 1.5 billion, also leading among the segments in the period of the month.

The health and education sectors are showing considerable growth, having the largest number of rounds of funding in the semester. There were 29 for the health area and 24 for education.

The report showed that 113 deals related to mergers and acquisitions were closed in the first quarter 2021.  That number is expected to surpass 250 in 2021, compared to 170 for the whole of 2020.


Written by Marcos Ferreira, content assistant at Drummond Advisors