rise of “unicorns“Brazilians, like nubankAnd Payment insurance e iFoodIt has a positive effect on the market. And the more successful these companies are, the more it will be investment Other startups receive. This has encouraged the creation of new funds and the arrival of international groups to explore this world, which – despite the crisis – continues to grow.
Between 2020 and 2021, the number of investors who invested money Startups In Brazil, it rose 34%, from 404 to 544 – the highest absolute growth since 2007, according to innovation platform Distrito. It is a rapidly expanding market with job opportunities.
Currently, the country has 21 inchesunicorns(Companies with a market capitalization of more than 1 billion US dollars) and dozens of other candidates to join the shortlist Billionaire startups in the coming years.
It is these promises and the possibility of earning a few million riyals that fill the eyes of investors and fuel this market. Only in 2021 did venture capital funds investing resources in start-ups break investment records. As of November, the amount contributed to the Brazilian market was nearly 200% higher than it was in all of 2020: US$8.8 billion (about R$50 billion, in dollars on Thursday), compared to US$3 billion (17). US dollars (billion).
Gustavo Araujo, co-founder and president of distracts. In his opinion, one of the highlights of 2021 was the huge investment rounds, which exceeded 100 million US dollars. On the other hand, companies are more mature and have a greater need for capital. On the other hand, there are well-capitalized managers with an appetite for Brazilian assets, as Araujo highlights.
Focus on the area
the influence nubank, which – which It first appeared on the New York Stock Exchange and the Sao Paulo Stock Exchange At the beginning of the month, it is expected to help attract more international investors. behind the billionaire SoftbankWhich is a new fund for Latin America, investment giants such as Tiger Global, Warburg Pimco and Andreessen Horowitz have also turned their attention to the region.
Entrepreneur Paulo Veras, co-founder of the first Brazilian Unicorn, 99, says the market is undergoing geographic related change. Ten years ago, he says, investments were migrating to Southeast Asia, and Latin America was practically excluded from this movement. Today, the region has become a hotbed of venture capital investments.
In his opinion, several factors increase the attractiveness of Brazilian assets. In addition to the new “unicorns”, the fact that most of the population has a smartphone and access to data and broadband infrastructure raises the level and prospects for business success in the country.
Another point of investor interest is the level of unbanking in Brazil, which means potential markets must be explored. Ferras also says national managers are also being set up – or recently launched – to enter the market. Among them are Headline, by Romero Rodrigues, founder of Buscapé; NVA Capital, formerly by XP Marcelo Maisonnave; and New Ventures for Americans Paul Bragel and Renaldo Normand.
A portion of those portfolios should go to startups that are starting now — about 75% of current investments are in seed rounds called Pre-seed, Seed and Series A, according to data from platform Emerging Venture Capital Fellows.
The market sees new investments
.’s new session Selic high The startup investment managers didn’t worry. For them, those who invest in this market are looking for the long term and will not stop investing in these assets to go into fixed income.
“It’s a path of no return,” says Renato Valente, Iporanga’s co-manager, Renato Valente. “Nubank has thrown the standards. A lot of people made money and that’s down to the ecosystem.” In his opinion, undertaking was never this quality. This year, the company has invested in ten startups and plans to raise a new fund in the first quarter of next year.
Despite the increase in interest rates, he believes that liquidity in the market will continue, and currently, a third of Iporanga’s portfolio is allocated to fintech and something to education. For 2022, Valenti says, the director will monitor financial startups. “With the advancement of Open Banking and Pix, many opportunities will arise. But we will also analyze startups focused on cryptocurrency and agribusiness, a market that has yet to emerge, despite its potential.
“At Astella Investimentos, partner Daniel Chalfon also does not believe in any change of trend now due to higher interest rates. He notes that the previous drop in Selic had a positive effect, bringing in investors who do not know this market.” They are professionals. They put resources into long-term assets and are not looking for a steady income.”
The executive says that 2021 brought good liquidity to the fund, with the sale of the RD station to Totvs – the director had a stake in the company. Estella has already accumulated four funds and has active investments in 27 companies. Next year, Chalvon says, a new portfolio could be put together. “The year 2022 begins with very good prospects, after a year in which all metrics set records.”
Co-founder and head of the region, Gustavo Araujo, says the market is growing in all dimensions, both in investments and in the number of funds and new start-ups. According to him, from now on, the sector will begin to discover the second wave of venture capital funds, which are more specialized in some areas, such as education, finance and retail. A lot of that capital will still come from abroad, but the Brazilian market is changing, as more investors learn about the sector.
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