Great news for the startup market in Latin America! The investments of capital in startups continue to increase. Right now, at least 23 Latin-American startups are valued at more than US$ 1 billion, according to the report published by the Crunchbase platform.
A good part of the investments took place in 2021 when 15 companies made a series of financial incentives. The big stand out went to FINTECHS, where Nubank, a Brazilian digital bank, raised US$ 750 million.
Another standout that caught the eye of many involved C6 Bank, which was the biggest FINTECH deal in Latin America this year when JP Morgan bought a 40% stake in the company at $2.3 billion.
The food delivery platforms, Rappi, and iFood, each raised US$ 500 million. Brazil is the center for unicorns in Latin America, with 2/3 of all located in its territory. VTEX, a company that manages digital commerce for large retailers, went public on the Stock Exchange with an IPO already valued at US$ 4.5 billion.
Higher growth forecasted for FINTECHS
The situation for FINTECHS is one of an even better future. The Open Finance that is being implemented in Brazil creates a more favorable framework for the performance of financial companies, causing a massive migration from bank branches to a digital environment.
According to a report by Inside Venture Capital, from the open innovation hub Distrito, a record investment in Brazilian startups was presented in the first half of 2021. The data pointed to US$ 5.2 billion dollars (more than 27 billion Reais) received by companies, compared to US$ 3.5 billion (close to R$ 18 billion) during the same period last year, a jump of 40% in the total invested. It was the best semester in the history of the Brazilian venture capital market.
Written by Marcos Ferreira, content assistant at Drummond Advisors