Nubank reaches 90 million customers
Amazon's first wind farm in Brazil. Alibaba Cloud arrives in Mexico. Why Kamay Ventures are investing in Brazil. Google fresh report on his acceleration programs in Latin America and globally.
Welcome to our weekly newsletter covering the latest news and trends in the Latin American startup scene.
Nubank reports revenues of USD $2.1 billion in the third quarter of 2023 and reaches 90 million customers
Brazilian fintech unicorn Nubank reported impressive financial results in Q3 2023, with revenues of USD$2.1 billion and net income of USD$303 million. The company reached 90 million customers, with the cost per customer remaining low and an improved efficiency ratio.
The Average Monthly Revenue per Active Customer (ARPAC) reached USD$10 for the first time. Nubank attracted 5.4 million customers during the quarter, bringing the total to 89.1 million globally, making it one of the largest digital financial services platforms. In Brazil, Nubank has 84 million customers, representing 51% of the adult population.
The company also saw growth in Mexico and Colombia. Nubank's product portfolio includes credit cards, savings accounts, personal loans, insurance policies, and investment customers.
Vía Contxto
Amazon announces construction of its first wind farm in Brazil
Amazon has announced plans to build its first large-scale wind farm in Brazil, with a capacity of 49.5 MW. The wind farm, located in the Seridó Wind Complex, will generate 255 GWh of renewable energy annually. This is Amazon's second commitment to renewable energy in Brazil, following the introduction of a solar park last year. The project aims to supply clean energy to Amazon's data centers, operations, and local communities.
The construction of the wind farm has created 1,000 jobs, with a focus on hiring from local communities. The use of innovative technology, such as drones, was incorporated into the construction process. Once operational, the wind farm is expected to prevent the emission of 148,000 metric tons of CO2.
Amazon has made progress in its goal to operate with 100% renewable energy by 2025, with a total of 479 solar and wind projects worldwide. These projects have also generated significant economic investments and job opportunities.
Vía Contxto
Google unveils the impact of its acceleration programs for startups in Latin America
Google has released its "Accelerator Impact Report" detailing the success of its acceleration programs in Latin America and globally. The report reveals that over 1,000 startups and developers in 87 countries have benefited from these programs, with a total knowledge value of over USD$121 billion. Latin America has a strong presence in these programs, accounting for 25% of participants.
The report also highlights the significant growth of Latin American startups, with over 50,000 employees and USD$13 billion raised. Gender inclusion is a focus, with a high percentage of female founders and mentors. Finance is the leading industry in these programs, followed by e-commerce, professional services, games, education, and health.
The report includes success stories, such as the Argentine company Oliver Pets. Globally, over a thousand startups have participated, raising over $300 billion and employing over 115,000 people. Google's acceleration programs provide technical training, mentorship, and networking opportunities for startups.
Vía Contxto
Quick News
Second Century Ventures has launched the REACH LATAM 2023 program to support technology companies in the real estate sector in Latin America.
About the program. The program aims to provide educational strategies, mentoring, and market exposure to help these companies establish themselves in the industry.
Highlights. Eight high-growth potential companies have already graduated from the program, with notable achievements including accelerated growth and industry transformation. (Contxto)
Impact of Milei’s victory in Argentina on the crypto exchange rate
The victory of Javier Milei in the presidential elections in Argentina has caused a significant increase in the value of the crypto dollar. This is due to speculation about the possible dollarization of the Argentine economy, a proposal highlighted by Milei during his campaign.
Crypto dollar. The rise in the crypto dollar has led to expectations of pressure on parallel currencies. The value of the crypto dollar fluctuated after the polls closed, reaching $1150 after Sergio Massa conceded defeat.
Dollarization plan. Economists estimate that a dollarization program would not be viable with an official exchange rate below $3000. The increased demand for parallel dollars is expected, as Milei confirmed that the dollarization plan is still underway. (Contxto)
Chile approves the OECD Crypto Asset Information Framework (CARF) to strengthen fiscal transparency
Chile's Ministry of Finance has announced the approval of the Crypto Asset Information Framework (CARF) by the OECD Committee on Fiscal Affairs.
Why it matters. CARF, based on the Common Reporting Standard (CRS), aims to facilitate the implementation of regulations in various jurisdictions and tax administrations. The framework will strengthen tax compliance and combat tax evasion related to crypto assets.
It’s not just Chile. Chile is willing to join the global initiative and play a leading role in its implementation. Several countries and territories, including the US, Australia, and Brazil, have signed the commitment agreement to the OECD. (Contxto)
Copec introduces renewable energy, mobility, and technology startups to Chilean authorities
Chilean President Gabriel Boric attended startup presentations supported by Copec, with a focus on developing innovative solutions in renewable energy and mobility.
About Copec Wind Ventures. Copec Wind Ventures, the investment arm in San Francisco, has invested USD$120 million in startups and aims to drive the energy transition in Chile.
Some investments. Startups including Source, Yotta, Galgo + Gogoro, Chiper, and Grabango presented their proposals, covering areas such as water generation, efficient batteries, electric motorcycles, AI-based supply management, and automated shopping experiences. (Contxto)
IGS Virtual Finance Job Fair announced in Chile
The Institute of Banking Studies Guillermo Subercaseaux (IGS) in Chile is launching the Virtual Financial Job Fair IGS, which will take place from November 20 to 24, 2023.
About the fair. The fair aims to connect employers in the financial industry with students and graduates of IGS, providing employment and internship opportunities.
Highlights. The event will focus on the theme of "Artificial Intelligence and Digital Finance" and will include talks and workshops on topics such as employability skills and the impact of technology on the financial sector. (Contxto)
Sebrae grants benefits of up to BRL$250,000 to startups
Sebrae Startups, a platform for early-stage businesses in Brazil, has registered over 6,000 new startups since its launch in May 2023.
Value proposition. The platform offers various opportunities for startups, including acceleration programs and investments. Startups that register for free on the platform receive access to content, updates, and a Benefits Club.
Sebrae’s goals. The goal is to have 30 partners offering benefits by the end of the month. The platform also offers training, acceleration, and investment programs. The aim is to reach BRL$500,000 in funds available on the platform for startups. (Contxto)
EBANX launches new products to protect transactions
Global technology company EBANX has announced new products and features on its payment platform, aiming to simplify and enhance the payment experience in the 29 countries it operates in Latin America, the Caribbean, Africa, and Asia.
About the company. The company has expanded its services to Africa, the Caribbean, and India, and now offers advanced technology for secure and efficient international transactions.
Services. The company has also improved its billing and payment solutions, providing a complete experience for businesses to receive and make payments in any currency. (Contxto)
InDrive launches the Underdog Tech Award 2023 to boost emerging technology startups in LatAm
The Underdog Tech Award 2023, created by inDrive, is an international award designed to support technology startups in non-traditional regions like Latin America.
About the award. The award aims to help these startups overcome challenges related to their geographic location and limited resources. The award seeks to recognize and support companies that are making a positive impact in their communities or have the potential to do so.
Why it matters. Startups outside of major technology centers, founded in the last five years, with a Minimum Viable Product (MVP) and limited funding are eligible to participate. The winner will receive a prize of $60,000 along with other benefits like PR support and training from industry experts.
Deadline. The registration deadline is December 1, 2023. (Contxto)
Votum World brings its CBD technology to Latin America
Votum World is a Spanish biotech startup specializing in innovative CBD products that combine cannabinoids with other active ingredients to provide superior health benefits.
Value proposition. The company focuses on improving sports performance and overall health by combining cannabinoids with other active ingredients.
Growth plans. Votum World plans to expand into neighboring countries and has already opened a subsidiary in Mexico. The team includes doctors, researchers, marketing professionals, and a COO. (Contxto)
Ripio drives Web3 innovation with nine startups selected for its acceleration program in LatAm
Ripio, a leading crypto-asset platform in Latin America, has launched an acceleration program for Web3 startups in the region. Trexx, a Brazilian startup focused on blockchain-based games, has been selected as one of the nine startups in the program's inaugural edition.
Value proposition for startups. Ripio will provide mentorship and support for implementing LaChain technology in Trexx's game development project. Trexx has gained recognition in various acceleration programs and aims to consolidate its position in the Latin American sector.
About the program. The program also includes startups from Uruguay, Spain, and Argentina, with diverse projects ranging from decentralized funds to P2P marketplaces. (Contxto)
Kamay Ventures expands in LatAm with investments in startups from Brazil
Kamay Ventures, a multicorporate fund backed by Coca-Cola Latin America, Grupo Arcor, and Grupo Bimbo, is expanding its investments in Brazil. The fund had previously postponed investments in Brazil due to inflated valuations but now sees a positive outlook in the country.
Brazil is the future. Kamay Ventures, which focuses on startups in the food and beverage sector, aims to have significant Brazilian participation in its portfolio.
Kamay’s watchlist. The fund is currently monitoring 12 companies for potential investments and plans to invest in another 15 to 20 companies over the next two years. The total amount of the first fund has not been disclosed, but it is expected to close in March 2024. (Contxto)
Cube Ventures and Vertical Labs to boost LATAM startups
Cube Ventures and Vertical Labs have partnered to launch an acceleration program in Latin America.
About the program. The program aims to provide selected startups with resources, mentoring, and connections to investors to help them overcome challenges faced by early-stage businesses.
Key sectors for the program. The selection process will focus on key sectors such as e-commerce, fintech, software as a service, and logistics. The program aims to empower startups and contribute to long-term economic growth in the region. (Contxto)
Global66 and FC Bayern Munich seek Latin American talent in an initiative for young footballers
Latin American fintech company Global66 has partnered with FC Bayern Munich to launch an initiative aimed at young footballers in Colombia and Chile.
Why it matters? The goal is to identify standout talents and select 11 players who will have the opportunity to train with the youth team of FC Bayern Munich in March 2024.
How to participate. Participants must create a TikTok video showcasing their football skills and register on the website. The selected players will travel to Munich for an eight-day training at the FCB Campus, promoting sports development and providing a unique educational and cultural experience. (Contxto)
Alibaba’s Cloud technology now comes to Mexico
Alibaba Cloud, the cloud services division of Alibaba Group, has entered the Mexican market to offer public and private cloud computing services. The company aims to drive technological advancement in established businesses and promote social inclusion.
Why it matters? This expansion comes in partnership with n.technology, Alibaba's local partner. The focus will be on strengthening commerce, particularly in the financial sector, and improving supply chains.
The goal. The goal is to accelerate societal evolution through accessible and inclusive technology. Alibaba Cloud plans to introduce innovations in Latin America and sees Mexico as an opportunity to become a regional leader. (Contxto)
Finds
tools, websites, and accessories
Tweet Hunter. Tweet Hunter is an all-in-one tool designed to help users grow and monetize their Twitter audience. It offers features such as creating high-performing content, increasing reach, improving ROI, and engaging with others.
Speak.ai Speak is a language data analysis tool that helps companies, researchers, and marketers gain insights from their data. It offers features like transcription, analysis, and generative AI.
SEO Writing AI. SEO Writing AI is an AI writing tool that generates SEO-optimized articles, blog posts, and affiliate content with just one click. It is available in 48 languages and can be auto-posted to WordPress with AI-generated images.
Food for Thought
Venture capital’s 2023 bloodbath, by the numbers
Startups and venture capitalists are facing a tough time in 2023. The collapse of Silicon Valley Bank and a lackluster IPO market have dampened optimism. IPOs from Instacart and Klaviyo started strong but are now trading below their initial prices, discouraging other companies from going public.
Mergers and acquisitions have also been slow, with the lowest annual level in a decade. The number and size of new funds have decreased, and startups have raised less capital compared to previous years.
Several high-profile startups, including Convoy, Zume Pizza, and Olive AI, have shut down due to funding challenges. WeWork's bankruptcy filing adds to the gloomy outlook. Without a rebound in the IPO or merger market, 2024 could be even worse. (Fast Company)B2B Brand Building For Series B And Beyond
The article discusses the challenges faced by B2B brands in raising funding in the current market. With IPOs facing setbacks, companies seeking Series B funding and beyond need to focus on building a strong brand that appeals to customers, investors, and potential employees.
For customer acquisition, companies should emphasize the emotional value they provide. To attract investors, companies should demonstrate their growth trajectory through content marketing and PR efforts.
And to attract talent, companies should showcase their mission, values, and company culture. Strategic branding is essential for success in the current funding landscape. (Crunchbase News)The Idea Isn't the Important Part
Marc Randolph, former Netflix CEO discusses the misconception of needing to protect ideas when pitching to investors. Marc argues that successful companies are not built solely on ideas but on the execution of those ideas.
They provide examples of well-known companies that pivoted from their original concepts. The author emphasizes that investors are not interested in the idea itself but in the entrepreneur's ability to solve the problem and execute the idea. They also mention that IP protection is only necessary in certain industries where extensive iteration is involved.The article advises entrepreneurs not to worry about sharing their ideas or pitching without a non-disclosure agreement, as the focus should be on getting started and iterating to make the idea successful. (Marc’s Substack)
Worthy Recommendations
Shoe Dog, recommended by Microsoft's former co-founder and CEO Bill Gates.
Shoe Dog. “Shoe Dog, Phil Knight’s memoir about creating Nike, is a refreshingly honest reminder of what the path to business success really looks like. It’s a messy, perilous, and chaotic journey riddled with mistakes, endless struggles, and sacrifice. In fact, the only thing that seems inevitable in page after page of Knight’s story is that his company will end in failure.”, Gates says.
Jobs
Board Member at Evermonte Executive Search (Brazil; Remote)
Business Developer Semi Sr (CDMX) at getxerpa (Mexico City; Remote)
Integrated Marketing Manager at Thomson Reuters (Mexico City, Mexico; Remote)
Analyst Development at Hilton (Mexico City, Mexico; On-Site)
Innovation Manager Climate & AgTech, Ventures - Mercy Corps at matteria (Mexico City, Mexico; Hybrid)
Deals
These startups and companies received capital this week:
Credix | Fintech | Not Specified. Brazilian credit platform Credix has raised USD$60 million from undisclosed U.S. investors. The funding will help Credix expand operations in Latin America and invest in tokenized assets.
PEMEX | Oil | Debt. Mexico's state-owned oil company, Pemex, has received financing from the federal government to continue modernizing infrastructure at three seaports. The ports include Pajaritos terminal, Salina Cruz terminal, and Guaymas terminal. The funds will be used to restore and adapt docking areas and pipeline networks at these ports.
Banco Multiple BHD | Banks | Not specified. Banco Multiple BHD is seeking up to USD$100 million in financing from the International Finance Corporation (IFC) to support climate-related lending in the Dominican Republic. The funding will benefit small and medium-sized enterprises and focus on projects related to energy efficiency, renewable energy, water efficiency, and sustainable transport.
RapiCredit | Fintech | Debt financing. Colombian online loan company RapiCredit has secured a USD$7 million debt investment from U.S. fund Almavest. RapiCredit provides microloans to individuals without access to banking services, and has helped over 550,000 unbanked Colombians gain eligibility for the traditional financial system.
Astride | Fintech | Not specified. Fintech company Astride plans to expand its operations in Brazil after receiving a BRL$3 million investment. Astride specializes in tax advisory for investors interested in investing outside of Brazil and offers its services digitally.
Kidsbook | SaaS | Competition. Kidsbook, a Chilean startup focused on organizing school tasks and materials for children, has secured financing of USD$40,000 in the Startup Peru Plug 4G competition. The platform, created by Sabrina Orellana, Miguel Orellana, and Rodrigo Marambio, aims to digitize the class book and improve communication between educational institutions and parents.
Project to Improve Sustainable Access to Electricity in Bolivia | Non-Profit | Financing. The World Bank has approved USD$125 million in financing to support Bolivia in expanding and improving access to sustainable electricity in rural areas. The project aims to reach over 141,000 people and increase electricity coverage from 84% to 95% in the country. The funding will be used for grid extension, mini-grid construction, and installation of individual solar energy systems.
Cubo | Fintech| Seed. El Salvadoran fintech Cubo has received USD$3.5 million in funding from IDB Lab to expand into Guatemala and develop digital payment solutions for small and medium-sized businesses. Cubo's versatile payment platform can handle card transactions through various methods, including POS systems, payment links, and QR codes.
Meddi | SaaS | Seed. Mexican startup Meddi has closed a new seed funding round of USD$1.75 million led by European fund Medical Device Resources LTD. Other investors include Grupo CAPEM, Irrazonable, Enlaces, and angel investors from the region. Meddi aims to revolutionize the outdated and lackluster healthcare sector in Mexico by offering practical and accessible health solutions through its medical SaaS platform.
Impacta VC | VC Fund | Seed. Impacta VC, Uper, and Emprende tu Mente (ETM) have successfully concluded a financing round, raising USD$1.4 million in the first few hours. The collaboration aims to boost the entrepreneurial ecosystem in Chile by offering investment opportunities in startups Retorna, Savia, and Theodora.
Luz del Sur | Utilities | Debt financing. Peru power distributor Luz del Sur has placed 360-day bonds worth 120mn soles (USD$32mn) with a yield of 7%. The funds will be used to refinance bank loans and potentially finance investments and working capital.
Logcomex | Logistics | Debt financing. Brazilian logistics startup Logcomex has raised BRL$165 million (approximately USD$32.5 million) in a financing round led by Riverwood Capital, with participation from Endeavor Catalyst and previous investors. The funding will enable Logcomex to expand its operations in Latin America, with a focus on Mexico and Colombia.