Brazilian venture capital, Canary, reloads with a new US$100 million fund

RIO DE JANEIRO, BRAZIL – Not since 2017 has venture capital experienced the explosion of the last year, especially in Latin America. It was then that Canary took its first steps. Five years later, its capital deployment has allowed more than 100 businesses to be born.

The third fund not only wants to repeat that success but to multiply it. Created and announced in November, it makes even more sense now that Silicon Valley investment giants are putting their dollars into Latin America.

Behind this vehicle is Marcos Toledo, a frequent attendee at Silicon Valley events. “When we created Canary in 2017, we did it with a strong conviction in Latin America, with great opportunities for bright people willing to create great businesses with the desire to start their entrepreneurial journey,” he explains excitedly.

5,400 DIRECT JOBS

The new fund wants to go even further: “To support these founders with great potential. We have learned a lot over the years. Now we understand their needs to give them access to talent, potential clients, keys, and information about the industry.

If the first fund was of US$45 million, the second of US$75 -launched in 2019-, this one of US$100 million wants to be the consecration of a model whose previous rounds add up to US$2.3 billion in investment, with an estimated creation of 5,400 direct jobs.

Among the most recognized startups are Buser, Salve, Hashdex, Facily, and Trybe. Toledo believes the thesis was correct: “We saw a macro movement, where people with great talent in corporations were stepping aside to leave their position and solve problems in the region.”

“Actually, this has gone faster than we thought. More than investing in ambitious equipment, what has been created is a powerful, tight-knit, connected network. This opens up new avenues for entrepreneurs in the region,” adds Toledo.

FROM CANARY TO ATLÁNTICO

Canary has a team of more than 20 people dedicated to helping entrepreneurs. In addition, after the first steps of Canary, some of the investors decided to start a fund, Atlántico, with a larger amount and thinking in a later phase.

At the head of this fund is Julio Vasconcellos, who since 2020 has raised $80 million in investment, so far distributed among 13 Latin American startups.

Toledo recognizes that the pandemic has accelerated trends already there, but that have now been accentuated. This makes it possible to look for even more quality entrepreneurs: “Over time, we have been expanding our vision of the continent, reaching Mexico, Argentina, and Colombia”.

Last year, what used to be Series A is now the usual figure for a seed round. A notable change that Toledo assumes naturally: “We don’t have a specific goal in terms of the amount of investment tickets. We want founders to perceive us as the best initial investors in pre-seed, seed, and Series A rounds”.

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