Bloomberg Línea — There are more reasons why Latin American startups are suffering than just rising interest rates. Contradictory due diligence numbers, cash burn rates, and the need to raise money at any cost - which means rounds at a lower valuation, but which are necessary to keep operating as a last resort.
Even with a drop in investments in Brazilian startups, according to the Inside Venture Capital report by innovation platform Distrito, the volume invested in early-stage Brazilian startups grew in the first half of 2022.
Seed type rounds (angel, pre-seed and seed) jumped from $151 million in the first half of 2021 to $282 million during the same period this year, while early-stage rounds (comprising Series A and B) increased from $1.23 billion to $1.39 billion during the periods cited. Creditas and GoodStorage received the biggest injections.
Following is a roundup of the most significant rounds this week:
Creditas
Creditas, a Brazilian secured lending fintech, has received a $50 million extension from Andbank and other investors in a $260 million Series F round, which was held in January this year and led by Fidelity. The extension, which will be used to pay for Andbank’s license in Brazil, brings the amount of the round to $310 million, but the company remains with the same valuation as seven months ago: $4.8 billion.
GoodStorage
GoodStorage, a box rental brand that operates in São Paulo to make urban spaces more efficient, received a $75 million investment in the third investment round led by private equity manager Evergreen Investment Advisors.
The investment will be used to expand the company’s business, and which plans to open more than 10 new units totaling 100,000 m² by the end of 2023.
GCB Group
GCB Group, a holding company specializing in the financial and capital markets, has reached an agreement with Belgian fintech Credix to receive $13 million in funding for its operations. The transaction will inject around 63 million reais ($11.8 million) into the company’s cash flow, and especially into its fintech Adiante, which offers credit to SMEs through the anticipation of receivables.
OneBlinc
Inovabra Ventures, the venture capital arm that is part of Bradesco’s innovation ecosystem, has invested $10 million in OneBlinc’s funding round. The US fintech, led by Brazilian executives, has already disbursed over 700 million reais ($131.1 million) in personal loans, serving around 50,000 customers in the US.
The platform was launched less than four years ago, with the offer of credit with payroll deduction for the public sector, but is already moving in the direction of expanding its operation to the private sector, featuring current account solutions, salary advances, cashback, as well as a debit card co-branded with MasterCard.
