Bloomberg Línea — Global venture capital (VC) funding fell 53% in Q1 2023 from $162 billion in the same quarter last year, according to a report by Crunchbase, while Q1 2023 saw $76 billion raised by VC-backed startups. I
n Brazil, funding fell 86% in Q1 2023 when compared to the same period last year, according to research released by the Distrito platform. Amid a more challenging scenario, Brazilian startup Assis received its first funding: 27.5 million reais ($5.4 million) from Costanoa, MAYA, Canaan, Norte Ventures, Latitud, FJ Labs, K50, 1616, BFF, and angel investors.
According to Distrito’s survey, 91 rounds were held in the first quarter of 2023 in Brazil, which moved the market with an injection of $247.02 million. In the same quarter last year, the sector accounted for 306 rounds and $1.7 billion in investments.
Fintechs received the largest volume of resources (approximately $62 million) and the highest number of rounds, 20.
Startups that work with retail (retailtech) received 11 contributions, the second largest number of transactions, but the third in funding volume, with $15.2 million.
Globally, funding stages in Q1 2023 were down 44%-54% year-on-year, according to Crunchbase, indicating that the slowdown is not limited to late-stage funding.
Despite the slowdown, investors in private companies still hold record amounts of dry powder [money to invest], with around $580 billion at the end of 2022.
The impact of the slowdown was variable across different regions, with sectors such as e-commerce, blockchain, and cryptocurrency being down in the first quarter. However, artificial intelligence companies remain positive, according to Crunchbase.
Assis, a virtual assistant for the self-employed, raised $27.5 million in its first investment round. The money will be used mainly for hiring to develop the platform. The investment was made by funds such as Costanoa, MAYA, Canaan, Norte Ventures, Latitud, FJ Labs, K50, 1616, BFF, and angel investors.
The platform will launch in April, with the idea of assisting self-employed people in sales processes with a bot integrated with ChatGPT.
The startup was founded by Raphael Machioni, co-founder and former CEO of Vee Benefícios, which was sold to French company Swile in 2020; João Bergamo, former CFO of Vee Benefícios; and Vagner Dutra, a member of PicPay’s founding technology team.
The company intends to be remunerated for payment capture charges and software subscription.
“We have already operated with some solo entrepreneurs, who have generated almost one million reais ($197,600). We will start with our waiting list. Soon, Assis will be available to all entrepreneurs,” Machioni said in a press release.