Global venture funding is falling... again.
The new hope to revitalize the Chilean financial market. Become a real owner of sports teams. AWS is looking for startups led by women.
Welcome to our weekly newsletter covering the latest news and trends in the Latin American startup scene.
ScaleX: The new hope to revitalize the Chilean financial market?
Chilean mining company Pampa Camarones has closed its registration on the ScaleX Santiago Venture Exchange, aiming to raise $7 million for expansion. The introduction of ScaleX, a less regulated exchange, could revitalize the Chilean market and offer alternative access to capital for companies.
Talks are underway to include ScaleX as an investment option for national pension funds, potentially boosting fund returns.
Pampa Camarones' listing on ScaleX could indicate the future of the exchange and the Chilean financial market. The combination of less regulation, pension fund inclusion, and a hungry market for investment options could bring ScaleX into the spotlight.
Vía Contxto
Global Venture Funding In Q3 2023 Falls Again Despite Late-Stage Rebound Led By Huge AI Deals
Global venture funding in Q3 2023 reached USD$73 billion, which is slightly higher than the previous quarter but down 15% compared to Q3 2022. This marks the second-lowest quarter in terms of funding since the decline began in 2022.
Seed and early-stage funding continue to decline, indicating that the venture markets are not yet opening up. However, late-stage funding increased by almost 10% year over year and 30% quarter over quarter, with companies in strategic sectors like semiconductors, AI, electric vehicles, and sustainability raising significant funds.
The IPO markets showed signs of easing as two venture-backed startups went public in September. Seed funding also decreased by 27% year over year. Overall, global funding has slowed down, with a 42% decline year over year for the first three quarters of 2023 compared to the same period in 2022.
Vía Crunchbase news
Quick News
PicPay integrates Apple, Samsung and Google wallets in Brazil
PicPay, a digital payments platform, has announced the integration of Apple Pay, Google Pay, and Samsung Wallet digital wallets.
Value proposition. Users will be able to make purchases using their mobile devices or smartwatches through the PicPay Card, eliminating the need for a physical card.
Why now. The integration comes after PicPay's acquisition of Banco Original's retail area, which has accelerated various projects. (Contxto)
Fintech Clara arrives in MTY with international payment solutions
Fintech company Clara has opened a headquarters in Monterrey, Mexico, to offer technology-based financial solutions to companies in Nuevo León.
Value proposition. The company aims to streamline corporate payments, including international payments to suppliers.
Business model. Clara International Payments allows companies to make payments in various currencies and countries from Mexico on a unified platform.
Be part of Clara’s team. The office in Monterrey is hiring for sales and engineering roles in collaboration with Tecnológico de Monterrey.(Contxto)
Buenos Aires to use Blockchain technology for digital identification
The city of Buenos Aires in Argentina is set to modernize its bureaucracy by implementing blockchain technology. Starting in October, residents will be able to access their identification documents through a digital wallet.
The project. The platform will initially include birth certificates, marriage certificates, income statements, and academic certificates. The project will eventually integrate health data and payment management.
The first city in Latam to adopt this technology. The government aims for this digital identity framework to be a public resource and hopes to implement it nationwide by 2023. Buenos Aires becomes the first city in Latin America to adopt this technology. (Contxto)
Alejandro Vázquez appointed president of Tiendanube
Tiendanube, the leading e-commerce platform in Latin America, has announced the appointment of Alejandro Vázquez as the company's president.
About the new role. Alejandro Vázquez as the company's president. Vázquez, a co-founder and former Chief Commercial Officer, will be responsible for driving the company's mission of eliminating barriers to entrepreneurship in the region.
Objectives. Vázquez holds a degree in Business Administration and Systems and has experience in companies like Dell. He aims to continue expanding the e-commerce ecosystem for Latin American brands and empowering entrepreneurs and small businesses. (Contexto)
Copel Launches Multi-million dollar Investment Fund to Boost Energy Transition in LatAm
Brazilian electric company Copel has launched an investment fund called Copel Ventures I in partnership with VOX Capital. The USD$30 million fund will support 15 startups in the energy transformation sector.
Fund focus. The fund will focus on renewable and clean energy, energy accessibility, smart cities, asset and facility management, and innovative internal practices aligned with ESG. The first investments will be made in 2023, with a planned investment range of $400,000 to $2 million per company. (Contxto)
Imagine Group Introduces a New Funding and Acceleration Program for Startups in Chile
Imagine Group has launched a new program called Imagine Waves to fund startups in Chile.
The program. The program focuses on specific sectors and aims to accelerate and support enterprises that offer impactful solutions. The program will provide funding, an acceleration program, and opportunities to establish ties with the industry.
Value proposition for startups. Startups chosen for the program will undergo a four-month intensive acceleration phase starting in October. (Contxto)
f20 Sports wants fans to be co-owners of a sports club
Silicon Valley-based company f20 Sports Corporation is aiming to revolutionize professional sports ownership by allowing fans to become real owners of sports teams.
Value proposition. The company plans to decentralize, digitize, and globalize sports club ownership, challenging the traditional model that puts the financial burden on fans.
Transforming the sports industry. f20 Sports has launched its website to engage fans and will implement a crowdfunding round under Regulation CF, enabling fans to become co-owners of a European soccer club. The company aims to bridge the gap between owners and fans and transform the professional sports industry. (Contxto)
Influur plans to expand its fintech services for content creators
Influur, a startup founded by four Latina entrepreneurs, has become a successful go-between for brands and influencers. Despite initial skepticism from investors due to the team's female predominance, they have proven that diversity is a catalyst for success.
Business model. Influur aims to establish itself as a top service for content creators and has secured significant funding from notable figures. They have now shifted into the fintech sector, partnering with the Point72 fund, and plan to offer reliable financial platforms for creators.
Female startups are struggling to secure funding. Female-led startups face challenges in securing funding. Despite this, Influur has ambitious plans for global consolidation by 2024. The team hopes to inspire other women and make a difference in the tech world. (Contxto)
Aurora Tech Award recognizes female startup founders
InDrive has launched the Aurora Tech Award, a global recognition program aimed at women founders of technology startups.
The award. The award seeks to eliminate barriers and promote gender equality in technology entrepreneurship. It aims to empower women leaders in the technology ecosystem by providing support, recognition, and financial resources.
Why it matters. Only 2.3% of venture capital funding goes to women-led startups, so the award aims to discover promising projects and provide necessary support. The winners will have access to the inDrive mentorship program.
Save the date. Applications can be submitted before December 31, 2023, and the finalists will be announced on January 31, 2024. Prizes include USD$30,000 for the first prize, USD$20,000 for the second prize, and USD$10,000 for the third prize. (Contxto)
10 LATAM startups to receive USD$50,000 from Credicorp Group
Grupo Credicorp has unveiled the 10 startups selected for its 'Future of Financial Services' accelerator program in Latin America.
The winners. Each startup will receive an investment of $50,000, with the possibility of an additional $150,000 upon program completion. The selected startups come from Peru, Colombia, and Chile and are focused on transforming financial services through innovative technologies.
From crypto payments to AI-driven forecasting. They cover a range of areas including cryptographic payments, financial inclusion, digitizing savings and credit associations, alternative financing for SMEs, and AI-driven forecasting. (Contxto)
Women’s Demo Week to promote women-led startups
Amazon Web Services (AWS) is organizing the first edition of AWS Women's Demo Week, a global event aimed at supporting startups led by women.
Save the date. Taking place from November 6 to 10, 2023, the event will connect women-led businesses with potential investors and partners.
Why it matters. The initiative aims to address the funding disparities faced by women entrepreneurs, particularly those of Afro-descendant and Latino origin. Startups selected for the event will have the opportunity to present their ideas, receive credits from AWS Activate, connect with technical experts, and join the AWS Underrepresented Founder startup community.
Where. The event will be held in 18 cities across six continents, including Bogotá, Buenos Aires, Sao Paulo, Mexico City, and Santiago. (Contxto)
Mexican startup iVentas.com grows 200% in one year
Mexican startup iVentas.com has seen a 200% increase in revenue in one year and expanded its operations to four Latin American countries.
Value proposition. The platform empowers businesses by using WhatsApp to reach potential customers and offers features such as multi-user access, chatbot integration, and AI-driven sales opportunities.
Invest in iVentas.com. iVentas.com has formed strategic alliances with META and Stripe and has been chosen by Amazon as one of the 10 startups in Mexico for potential investment. The company is currently raising capital and discussing partnerships with venture capital funds. (Contxto)
BlackRock and BCP Global bring investments closer to LATAM
BlackRock, a leading investment management firm, has partnered with BCP Global, a fintech company, to provide investment solutions to financial advisors and wealth managers in Latin America.
The partnership. The collaboration will allow banks and advisors to offer BlackRock's model portfolios to a wider audience of investors through digital tools provided by BCP Global.
The alliance. The portfolios will primarily be implemented through exchange-traded funds (ETFs), offering various investment strategies based on risk profiles and desired exposures. The alliance is targeted at wealth investors looking to access global investment opportunities through accounts in the United States, with a minimum investment of $10,000. (Contxto)
BID and Finnovista invite startups to contribute to a study on the fintech ecosystem in LatAm
The Inter-American Development Bank (IDB) and Finnovista are conducting a comprehensive analysis of the fintech ecosystem in Latin America and the Caribbean.
The fintech ecosystem. They have invited fintech startups to contribute to a survey that will be incorporated into the fourth edition of the main report on the sector. The report aims to provide insights into the state and advancements of the fintech industry in the region.
The previous report showed significant growth in the number of fintech platforms, and the upcoming report will focus on the sector's impact, sustainability, and inclusion. (Contxto)
DrGea: medicinal cannabis platform expands to Argentina
Colombian startup DrGea is expanding its operations to Argentina, taking advantage of the country's progressive regulations on medicinal cannabis.
The ecosystem. DrGea aims to provide quality cannabis-based products to patients seeking natural treatments for various health conditions. The Argentine market is particularly appealing due to its high acceptance of medicinal cannabis.
Company’s growth plans. DrGea also plans to expand further into other Latin American markets and is seeking smart-money investors to support its growth. The company not only focuses on commercial success but also advocates for wellness and health in the region. (Contxto)
Finds
tools, websites, and accessories
GPT Pilot. GPT Pilot is an AI tool that helps developers build apps faster. It asks clarifying questions, creates product requirements, sets up the environment, and codes the app step by step. The goal is to utilize AI to generate fully working apps, with the developer overseeing the process. The tool requires Python 3 and PostgreSQL.
Kapital IA. Kapital IALa is an AI-powered financial assistant that helps businesses make informed decisions. It provides information on the best market prices, notifies about payment increases, duplicates, or missing invoices, and generates reliable financial forecasts. The AI also identifies recurring payments and automates them, saving time. Additionally, it helps businesses validate that they are paying the best price to suppliers and optimize resources.
Narrative BI. Narrative business intelligence (BI) is a beneficial tool for small and medium-sized enterprises (SMEs). It is particularly useful for those who are new to marketing analytics as it allows everyone on the team, even those without technical or analytical skills, to participate. Narrative BI helps marketers overcome the challenge of dealing with averages by enabling them to identify and analyze outliers and gain valuable insights from them.
Food for Thought
Why Silicon Valley Falls for Frauds
The article discusses the collapse of cryptocurrency exchange FTX and the alleged financial fraud committed by its founder, Sam Bankman-Fried, and other senior figures.
It explores the question of why investors were easily deceived by Bankman-Fried, despite having access to information about the company's financials. The author suggests that Silicon Valley's hunger for epochal success and the immense amount of money flowing into venture-backed companies contribute to the susceptibility of investors. (Wired)
When predatory investors damage your chances of success
The article begins by discussing the development of the startup ecosystem in Oslo, Norway over the past seven years, noting that while the startups themselves have become more competent, some investors in the ecosystem are making short-sighted decisions by demanding too much equity from early-stage companies.
The author emphasizes that this approach is detrimental to the long-term success of the startups and encourages founders to push back against unreasonable terms. (TechCrunch)
A Secondary Investor’s Take On The Current, Still-Unnamed Downturn
Secondary-focused investor Industry Ventures believes that the current downturn in the tech and startup market needs a name. The firm suggests calling it the "Unicorn Collapse," but later decides this is too negative.
This shift has reduced the stigma around bootstrapping and highlighted the value of being able to secure your own funding.
Despite the downturn, there is still significant demand from sellers in the venture secondary market. Valuing private company shares is complex due to factors such as attached rights and the lack of relevant comparables. However, the presence of marketplaces for buying private company shares has made the process easier.
Late-stage portfolios have been impacted by the market pullback, while early-stage companies have generally maintained their valuations. The current downturn shares similarities with previous historic pullbacks, but there are also some differences, such as unexpected interest rate hikes and geopolitical anxieties. Secondary investors are positioning themselves for the eventual recovery in the market. (Crunchbase news)
Worthy Recommendations
Burn Rate: Launching a Startup and Losing My Mind, recommended by Ariela Safira, Founder and CEO, Real.
Burn Rate: Launching a Startup and Losing My Mind. “The most honest business book I’ve read to date, highlighting the real journey of founding a company.”, Ariela says.
Jobs
Gerente de Innovación at Grupo Salinas (Mexico city, hybrid)
Global Customer Happiness Strategy Lead at Clara (Colombia, remote)
Corporate Accountant at Riot Games (Mexico City, not specified)
Lead Product Manager, IgniteTech at Crossover (Mexico City, remote)
Senior Manager, Corporate Strategy and Development at Arrow Electronics (Tlaquepaque, Jalisco, Mexico; Hybrid)
Deals
These startups and companies received capital this week:
Albo | Fintech | Series C. Mexican fintech startup Albo has raised USD$40 million in a Series C funding round to further develop its payment services. The funding round saw participation from investors including Nazca, Morpheus Ventures, and Valar Ventures. Albo plans to use the funds to recruit key talent and aims to achieve profitability by the end of 2024.
Kenjo | SaaS | Series A. HR software startup Kenjo has raised USD$9.4 million in a successful Series A funding round led by the Hi Inov fund. Other investors included Lightbird and Innovation Nest. With this funding, Kenjo aims to solidify its position as a leader in the Latin American market, particularly in sectors such as manufacturing, retail, transportation, logistics, and health.
Lumu Technologies | Cybersecurity | Series B. Colombian cybersecurity startup Lumu Technologies has raised USD$30 million in a Series B funding round led by Forgepoint Capital. Lumu offers a network-centric approach to threat detection and response, aiming to provide effective solutions to security teams with limited resources. The funding will be used to expand sales globally, strengthen marketing efforts, and invest in R&D.
Maqui | Online Platform | Pre-Seed. Colombian startup Maqui has raised USD$1.5 million in a pre-seed funding round. Maqui is a platform that helps fashion companies track garment production and promotes efficiency and sustainability in the fashion industry. Maqui currently operates in Colombia and Mexico and manages the traceability of over 200 million garments per year.
Gringo | Fintech | Series C. Brazilian app Gringo has secured over USD$29 million in a Series C led by Valor Capital. The investment will be used to strengthen their credit and insurance products, add new features, and expand their user base to over 20 million.
Drip | Fintech | Venture. Brazilian fintech Drip has received a USD$8 million investment from SRM Asset and signed a partnership with them. Drip offers installment payment solutions via PIX and has seen a 25% monthly growth in billing. The app has over 500 active stores registered, including big brands like Nike and Shopee.
SIATT | Defense | Acquisition. UAE-based defense tech company, Edge Group, has acquired a 50% stake in Brazilian smart weapons specialist, SIATT. The acquisition is part of a co-development agreement between Edge and the Brazilian Navy for advanced anti-ship missile technology. SIATT will provide guidance and control systems for the project. This acquisition will help Edge expand its presence in the Brazilian market and develop high-performance smart weapons.
allu. | Fintech | Debt. Brazilian company allu. raised R$76,5 million in debt financing. The company offers a subscription service called allu, which allows customers to subscribe to the latest generation of Apple iPhones instead of buying them. The subscription includes additional benefits such as free accessories, a free backup phone, and free shipping.
Sling Hub | SaaS | Not specified. Latin American data solutions provider, Sling Hub, has raised USD$895,000 in a seed funding round led by Silvio Genesini, former president of Oracle do Brasil. Sling Hub plans to use the funds to expand its team outside of Brazil, closely monitor the emerging artificial intelligence startup ecosystem in Latin America, and enhance its data analysis capabilities. The company aims to create a new business model of selling reports in addition to its existing offering of annual contracts.
Koltin | InsurTech | Seed. Mexican health insurance startup Koltin raised USD$2.8 million in a seed round. The investment round was made by Colectivo Jaguara, Graph Ventures, Mucker Capital, and private investor Tom Petit. Koltin is the first - and so far only - dedicated health insurance company for older adults in Mexico.
Prosit | Healthcare | Not specified. Mexican startup Prosit has received a USD$100,000 investment from Google as part of the Google for Startups Cloud Program. Prosit aims to transform healthcare in Latin America using AI and Language Models. The funding will allow Prosit to deploy advanced technologies like Predictive and Generative AI, improving diagnoses and treatments.
Robbin | Fintech | Pre Seed. Brazilian startup Robbin raised USD$1 million in a funding round. Robbin offers an inclusive and fair credit card for businesses of all sizes, with no deposit, no annual fee, and no revolving credit. The company is leading a revolution to close a secular financing gap for 21 million SMBs in Brazil.
Divilo | Fintech | Series A. Spanish fintech company Divilo has raised €6 million in a Series A funding round, bringing its total funding to €12 million and valuing the company at over €50 million. The funding will be used to expand Divilo's presence in Europe and Latin America, with a focus on achieving profitability by 2024.