The Brazilian startups had in October the best result in fundraising since June this year, according to data from the Inside Venture Capital of Distrito innovation platform.
The volume of investments shows signs of recovery after the sector recorded the year’s lowest fundraising in September.
In October, US$376.4 million were raised in 54 rounds, representing an increase of 159% compared to the US$145.3 million raised in September in 42 rounds.
Despite the improvement, the October result was well below that recorded in the same month last year, when startups raised US$924.8 million in 80 rounds.
In the first ten months of this year, investments reached US$4.1 billion, with 557 operations, compared to US$8 billion in 705 deals recorded in the same period last year.
“Startups are still facing an adverse scenario because of the lower liquidity in the market due to the cycle of high interest rates worldwide and the adjustment in the market value of technology companies.
“But the October numbers show that the venture capital market in the country is resilient and that investors continue to find good opportunities,” explains Gustavo Gierun, CEO and co-founder of Distrito.
“An interesting fact is the increased appetite for investments in more mature operations,” adds the executive.
The so-called late stage, which encompasses stages from Series C onwards, had six rounds last month, with an average ticket of US$36.3 million.
There were only two operations in September, with an average ticket of US$39.1 million.
The month’s highlight was the fintechs, which raised US$250.2 million in 18 rounds.
Cerc, the first receivables registrar authorized to operate by the Central Bank, raised US$100 million in a Series C round led by Mubadala, Abu Dhabi’s sovereign wealth fund, which also had resources from Valor Capital.
Another fintech, the credit bureau Quod, raised US$80 million from LexisNexis Risk Solutions, a risk assessment company.
In October, there were 10 M&As, indicating stability compared to the 11 operations in September and a drop compared to the 30 M&As in October last year.
The largest transaction was the purchase of 75.1% of Isaac, a company that manages the financial flow of schools, by Arco Educação, owner of the education systems COC, Ari de Sá, and Dom Bosco, for US$150 million.
With information from Forbes