Completely satisfied Sunday!
This week was crammed with nice reads and insightful sector overviews. I additionally caught some fascinating documentaries on Netflix, which I’ll dive right into a bit. You see, I’m coaching for a marathon, so I’ve been engaged on rising my operating quantity all through the week. Provided that, and the chilly climate in São Paulo lately, I discovered myself gravitating towards the treadmill. Now, I used to assume lengthy runs on the treadmill have been insufferable, however I discovered a technique to make the time move extra simply: Netflix documentaries (podcasts simply weren’t slicing it).
With the loopy mileage I logged this week, I managed to observe two: Dancing with the Satan and What Jennifer Did. Each have a little bit of a darkish facet, however I actually loved them. They bought me excited about a couple of themes price noting: a) the ability of the web/social media and the way it captivates folks, b) how simply some folks will be influenced, and c) how the identical narratives play out repeatedly in society, with solely the characters altering. In the event you’re into documentaries, I extremely advocate each!
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Opinions expressed listed below are solely my very own and doesn’t symbolize these of individuals, establishments, organizations that I’ll or is probably not related to in any capability, until explicitly acknowledged.
Beginning out with a fantastic learn by Gilgamesh Ventures, “Dynasties in the Making: 15 Companies Cultivating Tomorrow’s Fintech Leaders,” which delves into the idea of “Fintech Households,” or firms which have change into breeding grounds for future fintech entrepreneurs. Much like how the ‘PayPal Mafia’ has influenced the tech world, this report identifies fifteen influential fintech firms within the U.S. and Latin America which have spawned almost 2,600 founders, with 12% founding fintech startups.
The analysis highlights that regardless of a slowdown in fintech investments, a brand new wave of startups is rising, pushed by alumni from these “Fintech Households.” Notably, 27% of those founders launched their firms in 2023, a yr marked by financial challenges, indicating resilience and an opportunity-driven mindset amongst these entrepreneurs.
A big discovering is the dominance of product and engineering leaders in founding new firms, with 50% of the noticed founders coming from these backgrounds. Apparently, the report notes that fintech founders usually enterprise past the fintech trade, with some firms like Brex and Affirm having a stronger inclination to provide fintech-specific entrepreneurs.
Latin American fintech firms, significantly these from Brazil, additionally play a vital position. Nonetheless, the report finds that non-Brazilian firms like Mercado Libre and Rappi have produced extra founders in comparison with their Brazilian counterparts, suggesting a broader regional affect.
Wanting ahead, the report anticipates that the affect of those “Fintech Households” will change into much more pronounced over the following decade, as extra startups based by their alumni attain maturity. The evaluation underscores the significance of sturdy branding and expertise attraction in constructing such dynasties, and it predicts that the following wave of fintech management will seemingly come from as we speak’s rising trade giants.
In the event you’re an avid reader, you may do not forget that I attended the Latin American Discussion board 2024 earlier this yr, hosted by Riverwood Capital. Just lately, they shared a analysis paper from BCG titled “Unlocking the Gen AI Opportunity in Latin America,” primarily based on insights gathered in the course of the occasion.
The examine surveyed 170 individuals, revealing that 95% imagine Gen AI may have a major or transformative affect on their organizations. Nonetheless, solely 20% really feel they’ve a well-defined imaginative and prescient and technique in place. Key use instances recognized embrace product enhancement (42%), new product improvement (29%), and code technology help (26%). The analysis additionally highlighted some spectacular advantages from Gen AI, comparable to a tenfold discount in buyer inquiry prices, a 25% lower in advertising and marketing content material creation time, and a 30% enhance in content material manufacturing effectivity—all main to raised buyer satisfaction and faster challenge decision.
Conventional firms are taking a strategic method to Gen AI, specializing in clear ambitions and prioritizing scalable use instances primarily based on affect and feasibility. Nonetheless, establishing specialised groups with outlined roles and governance stays a problem, with solely 28% of those firms efficiently implementing such groups. Then again, Latin American tech firms are shifting shortly with Gen AI, making use of it throughout varied features and use instances, each for fast wins and to reshape core enterprise areas.
LatAm tech firms face three essential challenges with Gen AI: Expertise, Accountable AI, and Information Mastery & Tech Readiness.
1. Expertise Recruiting expert personnel, coaching present workers, and making ready management are important hurdles. To deal with AI expertise shortages, firms ought to accomplice with specialised recruitment companies and develop tailor-made AI coaching applications that incorporate exterior experience. Moreover, adopting a brand new instructional method is essential for upskilling present workers.
2. Accountable AI Guaranteeing information privateness, transparency, and compliance with insurance policies and rules is crucial. Firms want a holistic method to remain agile in responding to present and future rules, construct stakeholder belief, and obtain total advantages.
3. Information Mastery & Tech Readiness Mastering information and making certain technological readiness entails tech integration, information governance, and mannequin coaching. Investing in superior information capabilities, dedicating sources to information design, and establishing strong information governance frameworks are mandatory steps for firms to excel on this space.
The analysis additionally highlights sensible AI use instances from LatAm tech firms like DLocal, Rappi, and Sensedia. One standout instance is DLocal’s implementation of a GenAI Copilot for Cloud Engineers. This device detects errors and robotically suggests fixes, lowering the Cloud Platform group’s human help by 90%. Consequently, the group can concentrate on platform improvement whereas engineering groups obtain rapid help, accelerating supply pace and enhancing total satisfaction. Future plans embrace enabling the Copilot to immediately repair code points, additional rushing up error decision.
In the event you’re desirous about how LatAm tech firms are leveraging Gen AI to beat challenges and drive innovation, these examples are positively price exploring!
Basic information:
- Enterprise capital funding in crypto is exhibiting indicators of restoration. PitchBook’s Crypto Report reveals that 503 offers have been closed with crypto startups in Q2, a 12.5% decline from the earlier quarter however a 4.6% enhance year-over-year. The full deal worth reached $2.7 billion, up 2.5% from Q1 however down 9.8% from 2023. Notably, early-stage valuations rose sharply, indicating rising competitors, whereas late-stage valuations dropped. This implies a shift in investor focus in the direction of earlier-stage alternatives.
- MercadoLibre has filed a grievance towards Argentina’s main banks, accusing them of cartelization for allegedly colluding to restrict competitors within the monetary companies market. The corporate claims that these banks are proscribing entry to credit score and monetary merchandise, undermining the expansion of digital platforms like MercadoLibre’s fintech arm, Mercado Pago.
- Peruvian fintech Hapi has reached half one million clients, marking a major milestone in its progress. The corporate celebrated this achievement with a sequence of initiatives, showcasing its increasing affect within the monetary expertise sector and its dedication to driving monetary inclusion in Latin America.
- HRtech Sólides has appointed Wladmir Brandão as its new Chief Synthetic Intelligence Officer (CAIO), marking a strategic transfer to boost its AI-driven innovation.
- RapiCredit has partnered with Alianza In to deal with digital credit score fraud in Colombia. This collaboration goals to boost safety measures and defend customers by leveraging Alianza In’s experience in monetary crime prevention. RapiCredit, a number one fintech within the nation, continues to strengthen its dedication to offering protected and dependable credit score options amid rising fraud issues.
- A brand new PIX rip-off is focusing on retailers in Brazil, utilizing faux banking apps to forge cost confirmations. Criminals current realistic-looking proof of cost utilizing these counterfeit apps, leaving shops earlier than the fraud is detected. A latest sufferer misplaced almost R$19,000 to this scheme.
- Chilean startup Owo is increasing its collaborative economic system mannequin to Mexico, providing versatile revenue alternatives by product gross sales.
- Two extra insurtechs, Qsaúde and Vitta, have acquired remaining authorization from Brazil’s SUSEP to function as absolutely regulated insurance coverage firms. This approval highlights the rising maturity of the insurtech sector in Brazil, which is more and more aligning with regulatory requirements. Each firms are anticipated to broaden their choices and contribute to the evolution of digital insurance coverage companies within the nation.
- ComparaOnline has been acknowledged as the primary LatAm insurtech to combine Generative AI (GenAI) into its operations, in line with the Latam Insurtech Journey 2024 report. Working in Brazil, Chile, and Colombia, the corporate leverages GenAI to boost buyer interplay, threat mitigation, and product personalization.
Basic information:
- Brazil’s upcoming tax reform is elevating issues amongst banks about potential impacts on their financials. The reform, which goals to simplify the tax system and cut back the general burden, may have an effect on profitability and operational prices within the banking sector. Key points embrace modifications in tax charges and new compliance necessities which will affect monetary stability and progress.
- idwall has change into the primary Brazilian firm to earn the iBeta 2 certification, confirming its standing as a worldwide chief in biometric safety. The certification, awarded after 1,700 rigorous fraud detection assessments, locations idwall amongst simply 42 firms worldwide to fulfill the ISO 30703-3 worldwide customary. This achievement underscores idwall’s dedication to combating advanced digital threats with 100% homegrown expertise, solidifying its aggressive edge in each the native and worldwide markets.
- BancoEstado and Wayra have chosen three startups—SoyMomo, NetLinQ, and Ubki—for his or her acceleration program geared toward boosting fintech innovation in Chile. These startups will obtain help to scale their options in areas comparable to little one security, digital connectivity, and credit score information administration, aligning with BancoEstado’s mission to boost monetary inclusion and digital transformation.
- DocuSign is evolving past digital signatures, launching the Clever Settlement Administration (IAM) platform to revolutionize contract lifecycle administration. With IAM, DocuSign goals to speed up doc evaluate cycles, extract beneficial insights, and cut back dangers, remodeling contracts into strategic belongings. This transfer aligns with rising world demand, particularly in Latin America, the place DocuSign is increasing its presence.
- In 2023, startups in Espírito Santo secured over R$ 45 million in investments, with a median quantity six instances increased than these in Santa Catarina, in line with EDP’s Mapeamento Inovação Capixaba. The state now ranks thirteenth in Brazil with 134 lively startups, exhibiting resilience regardless of world market challenges.
- Google has introduced the beginning of building for its new Engineering Heart on the Instituto de Pesquisas Tecnológicas (IPT) in São Paulo, set to be accomplished by January 2026. This heart, a part of a 10-year partnership with the São Paulo authorities, will concentrate on cybersecurity, privateness, and accessibility. It’ll embrace the Google Security Engineering Heart (GSEC), the primary of its variety outdoors Europe, and the Accessibility Discovery Heart.
Offers:
- Basemaker, a Brazilian adtech, raised R$1.7M in its second funding spherical, led by DOMO.VC with participation from Anjos do Brasil and Antler. The startup, based by William Vilar and Matheus Monteiro, gives a first-party information answer that permits social media creators to “lease” their audiences to manufacturers focusing on particular niches.
- Bertha Capital invested R$20M in fintechs in 2024, with extra to return. The enterprise capital agency has backed 5 fintechs this yr, together with Saks, Zemo Financial institution, Consignei, CashU, and Moss.
- Meu Pescado has acquired Vai Aqua, Brazil’s main aquaculture communication channel, as a part of its technique to digitalize the sector by instructional content material. This transfer, finalized in July, aligns with Meu Pescado’s aim to revolutionize data dissemination in aquaculture.
- Mercately, a LatAm startup, raised $2.6M in a seed spherical led by Inventus Capital Companions and SVQuad, with help from Techstars and Meta’s program. The corporate offers B2B software program to assist manufacturers promote immediately on WhatsApp, integrating with platforms like Stripe and HubSpot.
Basic information:
- Endeavor has introduced 38 firms for its second-semester Scale-Up Program. Notably, two-thirds of those firms have no less than one variety marker, exhibiting a major enhance from the earlier cohort. This consists of 10 firms led by ladies founders, 10 with Black founders, and 13 with various origins.
- Tuna, a cost orchestration platform, is making ready for a Sequence A spherical by late 2024 to broaden its operations into Latin America and the offline retail market. Based by ex-Peixe Urbano executives, Tuna goals to capitalize on the huge alternatives in bodily retail, which stays a fertile floor for technological innovation.
- The Brazilian Federal Police (PF) launched Operation Concierge, focusing on a legal group and unlawful fintechs concerned in monetary crimes and cash laundering. The group allegedly moved R$7.5 billion by unauthorized fintechs T10 Financial institution and InovePay, utilizing accounts “hosted” by regulated monetary establishments.
- Conta Simples, a Brazilian company expense administration platform, has appointed Conrado Tourinho as its new CMO. With a background at Coca-Cola and Gympass, Tourinho will concentrate on solidifying the corporate’s place as a nationwide chief in company expense options.
- Veloe is coming into the freight market, focusing on R$ 300 million in annual income from this new enterprise. With a possible market measurement of R$ 250 billion, the corporate goals to broaden its fleet administration companies, constructing on its present sturdy efficiency in automated toll tags and fleet administration. In 2023, Veloe generated R$ 5.4 billion in income, a 20% enhance from 2022.
Offers:
- Mombak, a carbon credit score startup centered on reforesting the Amazon, secured a R$160M mortgage from BNDES for tasks in Pará.
- Pedro Moll, an investor and board member of Rede D’Or, is coming into the non-public payroll mortgage market by investing R$10 million in TudoNoBolso, a fintech based by ex-executives from Credit score Suisse, Neon, and different main monetary establishments.
- Sankhya, a number one ERP group from Uberlândia, has made its eighth acquisition, shopping for HR tech startup Vixting. This strategic transfer, marking Sankhya’s third acquisition this yr, strengthens its place within the HR sector with an all-in-one HR suite.
- Grupo Elsys, a veteran in Brazil’s tech trade, has accelerated its M&A method by buying a stake in dtLabs, a deep tech startup specializing in AI software program improvement.
- AutoAgroMachines, a Brazilian startup specializing in autonomous agricultural equipment, secured an R$8 million funding to develop the Forest.Bot Reforma, a hybrid AI-powered reforestation machine.
Basic information:
- Brazilian company enterprise capital (CVC) funds dominated the Latin American panorama in early 2024, with 10 of the 16 most lively CVCs within the area being Brazilian, in line with LAVCA. CVCs accounted for 25% of all enterprise capital offers within the area in the course of the first half of the yr. Whereas there was a slight dip within the complete worth of CVC investments in comparison with 2023, the dedication from main firms like Bradesco’s 2bCapital and Vivo Ventures stays sturdy, significantly in seed and early-stage funding.
- Creditas has entered a brand new part of worthwhile progress in 2024, attaining a report gross revenue of R$209.4M in Q2 whereas slicing prices by 15%. With a forty five% YoY enhance in gross revenue and the best quarterly income in its historical past at R$493.5M, the corporate is now self-financing its growth. Creditas plans to spend money on expertise, broaden into new geographies like Mexico, and improve buyer expertise to drive additional progress. The fintech has additionally revised its annual progress goal to 25%, sustaining its profitability focus.
- TIVIT is coming into the monetary companies market with a R$25 million funding to launch TIVIT Techfin, an evolution of its 2021 model TBankS. This new division goals to double its monetary vertical income by 2024, providing a versatile ecosystem for monetary companies like funds, credit score operations, and receivables.
- OpenAI is reportedly in talks to lift a brand new funding spherical that might enhance its valuation to over $100 billion, in line with The Wall Avenue Journal. Thrive Capital is predicted to steer the spherical with a $1 billion funding, alongside potential contributions from Microsoft and others.
- PicPay reported a internet revenue of R$ 62M for H1 2024, almost doubling its 2023 earnings, with income surging 50% to R$ 2.4B. The fintech’s progress is pushed by portfolio diversification, together with credit score companies and cross-sell methods. Energetic customers reached 36M, shifting R$ 175B, a 77% YoY enhance. PicPay’s concentrate on effectivity and innovation, together with AI integration, continues to gasoline its growth because the seventh largest financial institution by purchasers in Brazil.
Offers:
- Brazilian startup Cellva Elements raised R$8.5 million in funding, backed by buyers like Proveg, Rumbo Ventures, and AirCapital. The funds will help increasing manufacturing infrastructure, hiring specialised professionals, and internationalizing operations. Cellva goals to scale as much as 10 tons of sustainable meals options month-to-month by 2026 and plans to enter world markets, together with the U.S., with improvements in nutraceuticals, microcarriers, and cultivated fat that cut back environmental affect.
Basic information:
- Brazil has ordered the suspension of Elon Musk’s X (previously Twitter) from utilizing person information for AI coaching. The Nationwide Information Safety Authority (ANPD) calls for that the platform halt its information assortment practices for AI till it complies with native information safety rules. This transfer follows issues over potential privateness violations and the necessity for specific person consent.
- dLocal is considerably increasing its presence in Brazil, the place it now generates 1 / 4 of its income in Latin America. The Uruguayan fintech has grown its native group by over 40% previously yr, reaching 130 workers. With a latest license from the Central Financial institution of Brazil, dLocal is about to combine immediately with the Pix system and can be making ready for the upcoming Pix Automated characteristic. Moreover, dLocal plans to leverage Open Finance to boost its cost initiation companies. The corporate serves over 600 retailers globally, together with main names like Amazon and Google, and is keenly watching the web betting market.
- Paraguay has seen over $1.1 billion in crypto mining investments previously three years, pushed by its low-cost inexperienced vitality. Nonetheless, unlawful mining is inflicting $3 million in month-to-month vitality losses and prompting authorities crackdowns. With rising prices and regulatory uncertainty, some firms are contemplating relocating to Brazil.
- Tech giants like Google, Microsoft, and Amazon are aggressively recruiting high expertise from AI startups to bolster their very own AI capabilities. These firms are providing profitable offers to draw engineers and researchers, intensifying the competitors within the AI house. This development highlights the escalating battle for AI dominance, with massive tech leveraging sources to soak up cutting-edge experience from smaller innovators.
- Meta has acquired authorization from Brazil’s ANPD to make use of person information for coaching its AI fashions, together with data from public posts. This replace to Meta’s insurance policies, efficient June 16, permits for the usage of publicly obtainable and licensed information, whereas making certain that non-public messages are excluded. Customers will probably be notified through Fb and Instagram, in addition to electronic mail, with choices to decide out.
- Nomad has appointed André Hübner as its new Managing Director of Investments. With over 30 years in finance, together with roles at HSBC, Dresdner Kleinwort Wasserstein, and Citibank, Hübner will concentrate on enhancing Nomad’s worldwide funding platform for Brazilians.
Offers:
- Mandi Ventures, the Brazilian VC agency, has added Alice Mushrooms, a U.S. model specializing in chocolate made with purposeful mushrooms, to its portfolio. The funding spherical, led by L Catterton and joined by celebrities like Zac Efron and Kevin Hart, marks Mandi’s concentrate on nutrition-as-medicine. Alice Mushrooms, launched in 2022, gives merchandise geared toward enhancing focus, need, and sleep. This funding aligns with Mandi’s technique of supporting revolutionary foodtechs, with earlier investments in agtechs and startups like Cultivated Biosciences.
- Ume, a Brazilian platform specializing in Pix-based credit score and funds, has raised $15M in Sequence A funding led by PayPal Ventures, with contributions from NFX, Globo Ventures, and others. The corporate additionally secured a $20M credit score rights fund from companions together with Verde and Itaú. Ume plans to boost its Pix-centric companies, serving to SMEs supply versatile cost choices and streamline transactions. Since integrating Pix in early 2023, Ume has quintupled its retail companions, tripled shopper engagement, and diminished delinquency by 33%. The funding will help progress in gross sales, advertising and marketing, and tech.
To begin with I wish to thanks all for sending me a number of fascinating tech occasions that may occur within the upcoming months!! The listing could be very intensive, and I’ll create quickly a notion with all of them (to keep away from this part being too lengthy). Right here, I’ll share those I discovered extra fascinating – which isn’t essentially true provided that it’s primarily based alone opinion! If you like tech events (while the Notion is not ready), I encourage you to access my LinkedIn post that has the entire list!!!!
WSO2 Expertise Brazil 2024
Date: September 5
Location: Rosewood (Sao Paulo)
Overview: Discussions on the newest technological improvements, with a concentrate on Synthetic Intelligence and the Platformless method. Moreover, we’ll deal with the challenges and alternatives that Brazilian firms presently face, comparable to optimizing buyer expertise and constructing a resilient digital infrastructure.
Inteligência Synthetic no Agronegócio
Date: September, 12
Location: STATE Innovation Heart, São Paulo.
Description: Grão Direto, the biggest digital grain commerce platform in Latin America, has partnered with Microsoft, ADM, BASF, and PwC to host an excellent occasion that includes famend market audio system, completely for chosen individuals. Pre-register here and seize the chance to take part in an immersive expertise expertise in agriculture. The occasion is free!
Sao Paulo Tech Week
Dates: Sept 16-22
Location: São Paulo
Description: A number of occasions centered in LatAm Tech happening within the metropolis. Notably, Cubo Conecta will occur on September 18.
Gartner CIO & IT EXECUTIVE
Dates: Sept 23-25
Location: São Paulo
Overview: Way forward for IT
Microsoft AI Tour – São Paulo
Date: September 26
Location: São Paulo
Overview: AI (together with opening with Satya)
Bossa Summit 2024
Dates: Sept 25-26
Location: São Paulo
Description: his occasion is a significant gathering for the Enterprise Capital market, that includes over 400 audio system, intensive networking alternatives, and a spread of workshops and mentoring periods. It is designed to convey collectively greater than 10,000 attendees, providing round 200 hours of content material on enterprise and innovation.
LAVCA Week 2024
Date: October 8-11
Location: Conrad NY Downtown
Description: LAVCA Week convenes main non-public capital buyers from Latin America and across the globe every year for a sequence of significant discussions and personal conferences overlaying the newest developments in non-public fairness, enterprise capital and different non-public capital methods. Participation at LAVCA Week is fastidiously curated and capped. LAVCA Members, non-member non-public capital buyers and certified institutional buyers are invited to attend. LAVCA Members have entry to particular early chicken charges by 29 August 2024.
Snowflake World Tour – The Period of Enterprise AI (São Paulo)
Date: October 8
Location: São Paulo
Description: Snowflake’s world occasion gathering the expertise trade to debate improvements to speed up AI improvement inside enterprises. The occasion may have over 15 studying periods and a number of other networking alternatives.
AsaaS Join
Date: October 10
Location: São Paulo
Description: This occasion is designed to convey collectively leaders and professionals within the newest developments in expertise, enterprise, and finance. The one-day occasion gives a complete expertise, together with shows from high trade consultants, networking alternatives, and insights into revolutionary options that may drive enterprise success. Asaas Join 2024 follows the success of its earlier version, which attracted round 1,500 individuals and featured notable audio system comparable to Randi Zuckerberg, who mentioned the way forward for the metaverse. I will probably be a speaker… see you there?!
REC ‘n’ Play
Date: November 6-9
Location: Recife
Description: Annual innovation and expertise competition geared toward fostering creativity, expertise, and entrepreneurship. It brings collectively professionals, college students, and fanatics by workshops, lectures, and cultural actions, offering a platform for studying, networking, and collaboration. The occasion highlights Recife’s position as a rising hub for innovation in Brazil, connecting individuals with trade consultants and new developments.
Stats Conf
Date: November 8-9
Location: São Paulo
Description: Bitcoin solely expertise occasion – crypto, finance, blockchain
#fswk24 – O Momento Atual dos VCs na Saúde
Date: November 6
Location: Rio de Janeiro
Description: This occasion focuses on the present panorama and alternatives for enterprise capital investments within the healthcare sector. Attendees will achieve insights into the newest developments, challenges, and methods for investing in well being tech startups and revolutionary healthcare options.
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QUOTE OF THE WEEK:
“There’s no free lunch” – Unknown
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