Why SoftBank is Leaving LATAM'S investments? So, why startups are playing "on hard mode"?
Fintech and AI with VC Mercedes Bent. Heru revolutionizes Tax Management with AI. Crecy and its new Ethereum-Backed credit card. ACAMS announces LATAM Assembly 2023. insurtech decreases investments.
Welcome to our weekly newsletter covering the latest news and trends in the Latin American startup scene.
What do the LATAM stake sales mean for SoftBank?
SoftBank's decision to sell off stakes in Latin American startups indicates a recalibration of its investment strategy, rather than a withdrawal from the market.
Despite challenges and a period of restructuring, SoftBank remains optimistic about the potential of the Latin American startup ecosystem and plans to continue deploying capital in the region.
SoftBank's recent stake sales in Latin America can be seen as a cautionary signal and an adaptive strategy in response to the uncertain market environment, but the company still maintains a strong presence and billions in reserve for future opportunities in the region.
Vía Contxto
LATAM startups playing “on hard mode”, fintech and AI with VC Mercedes Bent
In this episode of the Equity podcast, host Mary Ann interviews Mercedes Bent, a partner at Lightspeed Ventures and co-lead of Lightspeed’s LATAM region and angel fund.
They discuss why Mercedes started investing in Latin America and why she believes the region is resilient.
They also explore the intersection of AI and fintech, and why generative AI and fintech may not always be the best combination.
Vía TechCrunch
Quick News
Heru Aims to Revolutionize Tax Management with Artificial Intelligence in Mexico
Fintech platform Heru has launched new tax services powered by AI technology, making tax filing more accessible and economically viable for users.
Value proposition. The expanded services include monthly tax filing options for various tax regimes, with special rates for digital platform earners and independent workers. (Contxto)
Crecy Revolutionizes the Crypto Industry in Mexico with Its New Ethereum-Backed Credit Card
Crecy's new crypto-backed credit card, backed by Ethereum, offers a convenient way for Latin American cryptocurrency investors to unlock the financial potential of their assets without selling them.
Value proposition. The card allows users to access the financial potential of their crypto assets by instantly purchasing Mexican pesos without selling their tokens. It has no annual fees and offers a lower cost than other credit cards.
Crypto is growing in LATAM. The launch comes amidst growing interest in cryptocurrencies in Latin America, with billions of dollars flowing into the region. (Contxto)
ACAMS Announces LATAM Assembly 2023 to Combat Cyberattacks
The Association of Certified Anti-Money Laundering Specialists (ACAMS) is hosting the LATAM 2023 Assembly in the Dominican Republic to discuss strategies for combating financial crime in Latin America.
Date & host. This two-day event will be held in the Dominican Republic starting August 29.
Speakers. Gustavo Elhim Vega Ruvalcaba (GAFILAT), Meliton Cordero (DEA of the U.S. Embassy in the Dominican Republic), Alejandro Fernández (Banking Superintendency of the Dominican Republic), and Rodrigo Kibsaim García Romo (National Banking and Securities Commission, Mexico).
Highlights. Participants will have networking opportunities aiming to bridge the gap between the public and private sectors. (Contxto)
Clara Now Offers International Payment Services in 30 Countries
Mexican fintech company Clara has introduced international payment services to help Mexican businesses tap into global markets and leverage nearshoring opportunities.
Value proposition. The targeted countries for payments include Argentina, Brazil, Colombia, Chile, Peru, 26 European countries, and China.
Growth potential. Clara sees growth potential in areas like services, raw material acquisition, infrastructure, and payroll payments. (Contxto)
Urbvan Raises the Bar for Transport in Mexico and Lays Out Expansion Plans in Latin America
Mexican startup Urbvan is offering a vanpooling service as a transportation alternative in urban areas.
Value proposition. Urbvan provides comforts such as WiFi and professional drivers, attracting users despite being slightly more expensive than public transit.
Growth plans. The company plans to expand to other Latin American cities with challenging traffic conditions.
Mexican shared ride market. The shared ride market in Mexico is expected to grow at a compound annual growth rate of 28% from 2021 to 2026, driven by urbanization. (Contxto)
The insurtech sector experienced a significant decrease in investment in 2022
The insurtech sector experienced a significant decrease in investment in 2022, impacting the global startup valuations. However, experts believe the insurtech market is at a crucial point to address the current challenges in the insurance industry.
Highlights. According to a report by NTT Data, investment in insurtech decreased by 28% in 2022, reaching USD$8 billion compared to USD$11 billion in 2021.
Why this decrease. The decline in investment is attributed to global socio-economic uncertainty, including conflicts in Europe, high inflation, and increased interest rates.
Growth in LATAM. Latin America is seen as having great growth potential due to its technological adoption, but it is important to understand local needs to offer disruptive and transformative solutions. (El Economista)
122 startups from 12 Latin American countries will participate in the Fundraising Strategy Program 2023.
Women startups founders are on the rise. This year, there was an increase in the participation of women, with 35.2% of the selected startups being founded by them.
About the program. The program, driven by Impacta VC, aims to help these startups raise capital through their own fundraising strategies.
Startup sectors. The selected startups come from various sectors, with fintech and healthtech being the most represented. (Mundo Startups)
Seedstars International Ventures: fund focused on innovation in emerging markets
Seedstars International Ventures focuses on investing in high-potential startups in emerging markets, particularly in the fintech and future of commerce sectors.
Investing in LATAM. Seedstars International Ventures II plans to make 30-35 investments in Latin America over the next three years, with a strong emphasis on Mexico and Brazil as promising markets for exponential growth.
Portfolio. Notable startups in their portfolio include Aviva, Flourish FI, Confiabogado, and CuboPago. (Contxto)
Belo Implements Corporate Payments with ACH Dollar Transfers
Digital wallet Belo has launched a web platform for businesses, allowing companies from 108 countries to open a free account and conduct transactions in pesos, cryptocurrencies, and send dollars to foreign accounts.
Value proposition. To help alleviate difficulties faced by Micro, Small, and Medium Enterprises (MSMEs) in Latin America when conducting international transactions.
Highlights. Belo offers tools to simplify and speed up money transfers abroad, including the option to pay up to 20% of salaries in cryptocurrencies. (Contxto)Mexico City Hosts Startups Latam Week in Search of New Unicorns
Startups Latam Week aims to provide visibility and support for emerging entrepreneurs in Latin America, helping them raise capital and expand their businesses.
When. September 5 to 7.
The event. The event aims to impact the entrepreneurial ecosystem in the region and will feature panels, workshops, and interviews with industry experts.
Speakers. Angel Ventures, Seedstars International Ventures, and many more.
Price. Totally FREE.
Where. Co-Madre, Montes Urales, Mexico City. (Contxto)Fintech Summit Latam 2023: Redefining Financial Future in Mexico City
Event overview. The 15th edition will be hosted in Mexico City on August 31st and September 1st, spotlighting the financial industry's future in LATAM.
Global voices. 40 speakers from diverse regions, including Colombia, Argentina, Chile, Brazil, the U.S., and Mexico, will offer a myriad of perspectives on financial megatrends.
Key focus areas. Emerging tech, regulatory updates, and converging financial sectors form the core topics. Highlights include Fintelcos, Open Finance, and FaaS.
Event's purpose. Ana María Yumiseva underscores the summit's mission to facilitate transformative discussions in the financial ecosystem, supported by esteemed international speakers.
Networking & innovations. Aimed at fintech leaders, the event offers AI-driven networking through the Swapcard app and showcases cutting-edge fintech solutions in both virtual and physical exhibition spaces. (Contxto)
Finds
tools, websites, and accessories
AI Speeder. AI Speeder is an AI tool that uses artificial intelligence to create unique and engaging content. It offers over 60 templates for different purposes, such as articles, blogs, ads, and social media posts.
Designhill Email Signature. Make your own email signatures with this software. You can also generate your company employees' email signatures for free.
Shopify. Do you want to launch your ecommerce business? Don’t worry, Shopify takes care of inventory, payments and orders management. And more.
Food for Thought
As Venture Market Slows, Fewer Early-Round Unicorns Being Minted
The number of early-stage startups reaching unicorn status has significantly decreased due to a slowdown in venture funding and a focus on profitability.
Only 18 out of 47 unicorns created in the first seven months of this year joined the unicorn club after an early-stage funding round, compared to 107 in 2021 and 77 in the previous year.
However, the AI sector has seen some success in creating unicorns, with the US leading in early-round unicorns followed by China. Other industries such as EV charging, solar, energy storage, and mineral extraction have also seen some unicorns emerge. (Crunchbase News)
Why generalist investors will always win
Generalist investing will always be the primary mode of venture capital due to the unpredictable nature of revolutionary tech companies and the need for transcendent founder talent.
While specializing in a particular sector may seem advantageous, the author believes that revolutionary tech companies are unpredictable and transcendent founder talent is still crucial.
The article concludes that generalist investors can provide value by offering cash, a trusted reputation, and access to capital, even without specific expertise in a particular field. (TechCrunch)
Economic downturns present opportunities for aspiring entrepreneurs to take control of their careers and attract highly qualified professionals and potential funding. The author provides three reasons for this.
First, in times of economic downturn, job security becomes scarce, making entrepreneurship an appealing option for those seeking control over their careers.
Second, the current situation has created unique pain points that startups can address, such as using AI for job opportunities, providing financial planning tools, and offering virtual mental health services.
Finally, venture capitalists have a lot of money waiting to be invested, and as the economy stabilizes, they will be looking for promising startups to support. (Crunchbase News)
Worthy Recommendations
The Age of AI: And Our Human Future, according to Ginni Rometty, cochair, OneTen:
The Age of AI: And Our Human Future by Daniel Huttenlocher, Henry A. Kissinger, and Eric Schmidt. “This book reinforces why we must focus on stewarding good tech. As Kissinger has said, history shows that when people are fearful of something and they don’t understand it, they revolt. AI is at that moment. I’m a believer that AI has a great upside and will change every job for the better, but it matters how we implement it”, Ginni says.
Jobs
Finance Manager - DEP (Digital Payments & Emerging Markets) at Amazon (Mexico City, not specified)
CEMEX Ventures Analyst at CEMEX Ventures (Monterrey, Nuevo León, on-site)
Business Development Manager LATAM at Emma – The Sleep Company (Mexico City, hybrid)
Account Growth Manager at Rappi (Buenos Aires, hybrid)
Business Developer at MailUp (Mexico City, hybrid)
Deals
These startups and companies received capital this week:
Nomad | Fintech | Series B. Nomad, a Brazilian fintech, has raised a USD$61 million Series B investment led by Tiger Global Management, bringing its valuation to USD$365 million. The new funding will be used to expand Nomad's global investment platform and launch new products, including credit initiatives.
Howdy.com | IT | M&A. Howdy.com, a U.S.-based tech startup, has acquired GeekHunter, a Brazilian firm specializing in hiring technology professionals, in order to meet the growing demand for technological talent in the United States.
Autolab | Software | Not specified. Car service management software provider Autolab has raised USD$4.1 million in a funding round led by Vertical Venture Partners and Haven Ventures. Autolab's software connects car service facilities with various clients, including corporate fleets and individual vehicle owners, bringing transparency and convenience to the industry.
Metabase Q | Cybersecurity | Series A. Latin American cybersecurity company, Metabase Q, has successfully closed a Series A funding round, raising USD$3 million. SYN Ventures led the round, with backing from investors such as GBM and former Mandiant executives. Metabase Q plans to use the funds to expand and optimize its operations.
Rextie | Fintech | Debt Financing. Peru's leading currency exchange platform, Rextie, has received a strategic investment from global bank Citi. This makes Rextie the first FX FinTech in Latin America to receive backing from a major bank. The amount of the investment was not disclosed.
Botanical Solution | Biotech | Series A. Botanical Solution, a company specializing in advanced botanical materials, has raised an additional USD$7 million in Series A funding, bringing its total funding to over USD$13 million. The funding round was led by Otter Capital, with participation from Latin American investors Boldo SpA and Quebec LP.
Battistella | Wood products | Debt Financing. Brazilian company Battistella, whom sells lumber, pine chips, sawdust and pine logs, has received a EUR€9 million loan from italian bank Intesa Sanpaolo. The brazilian company will use the money to finance the construction of a new factory building with high energy and environmental standards.
Balam | Payments | Pre Seed. Balam, the Mexican startup cross-border payments across Latin America has received an investment of USD$400,000 by european startups accelerator Rockstart.
Campito El Laurel | Agriculture | Seed. Ecuatorian agriculture company Campito El Laurel has received an investment of USD$1,000. The investor was not disclosed.
Fibra Danhos| Real Estate | Post-IPO Debt. Fibra Danhos, a Mexican real estate investment trust (REIT) focused on the development, acquisition, and management of commercial centers, offices, and mixed-use properties, has issued Sustainability-Linked Bonds worth MXN$2.5 billion on the Mexican Stock Exchange.
Hello CONTXTO team, could you please indicate me an e-mail address to share with you a precision about the information that you publish in this site. Thank you very much in advance. SoftBank Public Relations Team.