Venture capital investments in Brazil reach $ 5.2 billion in the first half of 2021


Brazilian startups have attracted record levels of investment as the ecosystem matures with international funds rushing to seize opportunities in the Latin American country, according to a study.

In the first six months of 2021, a total of $ 5.2 billion was invested in startups based in Brazil, according to figures released by the Open Innovation Network. Distrito. For comparison, the total invested over the whole of 2020 – which was considered the best year on record for the ecosystem until recently – reached $ 3.5 billion.

During the first half of 2021, the study noted that Brazil saw the emergence of four new unicorns, companies valued at $ 1 billion or more: an online education and e-commerce business. Hotmart, crypto exchange Bitcoin Market, and online retailer Madeira Madeira. In addition, digital banking C6Bank, which held a 40% stake purchased by JPMorgan Chase, has been added to the Brazilian unicorn pool.

“The success stories and constant announcements of unicorns in Brazil attract the attention of foreign investors and this is reflected in the market,” says Gustavo Gierun, co-founder of Distrito. While 64% of transactions were concentrated in start-up cycles, with 234 such investments announced in the first half of 2021, later stage transactions accounted for the bulk of the volume invested in the first six months of the year.

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Report lists 11 mega towers that surpassed US $ 100 million in the first six months of 2021, raised by the digital banking company Nubank on two towers ($ 1.15 billion), real estate company Attic ($ 525 million), cross-border payments company Ebanx ($ 400 million), real estate company Quinto andar ($ 300 million), corporate wellness operator Gym Pass ($ 220 million), logistics company Loggi ($ 212 million), Bitcoin market ($ 200 million), Madeira Madeira ($ 190 million), payment company Cloudwalk ($ 190 million), bus rental company Buser ($ 138.9 million) and Hotmart ($ 126.5 million).

According to the report, fintech is the most active segment of the Brazilian startup ecosystem. Startups focused on providing financial services have attracted about half of the volume invested in the country, with $ 2.4 billion spread across 72 deals.


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