Latin startups seize 43% much less, however develop in variety of offers

The volume of investment raised by startups in Latin America dropped 43% in October, compared to the previous month, totaling US$ 920 million, according to a survey by the Sling Hub🇧🇷 Despite the drop, October had the highest number of rounds since July 2021. There were 111 deals in the period, with an average of US$ 12.2 million per check.

According to the Latam Startup Activity Report, there were record spins of up to $5 million, up 66% compared to last month. At the same time, disregarding the debt rounds, the volume raised in October represents a jump of 154% in relation to the previous month.

“With recent market adjustments, many analysts wondered if the innovation race was losing relevance. While the results of the Latin American startup ecosystem in 2022 were less encouraging than in 2021, the scenario looks solid enough. Sling Hub On the report. “These are indications that while startups in later stages may struggle more, the appetite for innovation has not dropped when it comes to early stages.”

It also improves in Brazil

The Brazilian ecosystem scenario also improved this month, with the Startup Index closing at 347.1 points, the 3rd highest result of 2022 after May and February. Brazil continues to be the leader in the region, moving US$ 310 million and 73 of the 111 rounds in October. Far behind is Mexico, with 16 rounds, and Colombia, with 10. The continent’s most active investors were Bossanova, Sebrae and Timenow🇧🇷

The highlight round of the month is the $10 million seed of the Mexican fintech mattildaled by private equity fund FinTech Collective🇧🇷 Honorable mention also for the FENCE, a Brazilian fintech that records financial assets as receivables. The startup raised BRL 550 million in a round led by Mubadala Capital, with the participation of Capital Value🇧🇷 the colombian Foodology closes the month’s triad with a $20 million Series B, led by Andreessen Horowitz🇧🇷

Brazil is also the leader in M&As, with 18 companies acquired in the last month, which account for 72% of the October total. The last month saw 26 M&As, of which 25 were acquisitions and 1 merger – which indicates a decrease of 27% compared to last year, but a growth of 61% compared to September. The most attractive startups were fintechs (8) and deeptechs (3), followed by edtechs (2), proptechs (2), autotechs (1), beautytech (1), communications (1), design (1) and energy ( 1).

O Apothecary Group announced the purchase of 100% of Dr. Jones, brand of male hygiene and beauty products (beard, hair, skin and bath). With the deal, which the value was not revealed, the brand will further strengthen its portfolio aimed at vain men. THE root bought the digital wallet paylywhich belonged to the parent company Cosan, for R$ 78 million. And the Arch Education invested US$ 150 million for 75.1% of the capital stock of Isaacstartup for managing the financial flow of schools.

Source: Startups