Latam startups continue to improve and region has 23 unicorns

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.

Brazilian Startups received a record US$ 5.2 billion in the first semester

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

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