Bloomberg Línea — July was the most promising month of the year for the Latin American startup ecosystem, with $803 million invested in 78 rounds of investment, according to a report by Sling Hub and Itaú BBA. However, this represents a 9% decrease compared to the same month last year, but a 68% growth compared to June.
“Our optimism increases even more when we focus exclusively on equity-based financing, excluding debts,” wrote João Ventura, founder and CEO of Sling Hub, in the report.
“Equity rounds showed year-over-year growth (23%) and month-over-month growth, with a 114% increase in volume compared to June.”
Until July, the total amount of funding raised by Latin American startups was $3.3 billion, less than half of what was received in the same period last year.
While fintechs continue to dominate investments, the biotechnology and energy sectors have shown significant growth. Since January, biotechnology startups have received monthly investments at least 10 times larger than those made in the same months of 2022, according to Sling Hub.
The sector’s record was set by XP’s $63 million investment in Superbac.
On the other hand, energy startups have experienced slightly more irregular growth but still managed to raise $206 million in 2023, 40% less than the $349 million in 2022. The highlight of July was Peruvian company Tumi Robotics, which received $94 million from Startup Chile.
These are the startups that secured investments in recent days:
Categorized as an ‘Insurtech-as-a-Service’ company, Brazilian Fitinsur received approximately $10 million, according to individuals familiar with the matter, in an investment from Lanx Capital, with participation from EquitasVC.
The company, founded in December 2019, offers business insurance and achieved break-even in 2020. Fitinsur aims to popularize access to business insurance products through an API marketplace, allowing integration with business systems. The new investment will be used for the development of new features, use of generative artificial intelligence, development, and expansion of the team. Fitinsur’s clients include national and multinational companies in the insurance sector such as Mitsui Sumitomo, HDI Global, Galcorr, and Ceres.
The NAZCA fund and IDB Invest led a Series A investment round of $15.5 million for Wonder Brands, an e-commerce aggregator operating in Mexico and Argentina.
The startup’s business model seeks to acquire independent brands selling on platforms like Amazon and Mercado Libre. The round also saw participation from CoVenture, SilverCircle, Korify Capital, Infinitas Capital, and GBM México.
Vetalia, a Mexican startup founded by María Gutiérrez and Marion Benítez Landa, provides veterinary services. The company recently announced it received a $10 million investment led by angels such as Lukas Keindl from BondVet, Andrea Viejo from Laika México, Terry Gutiérrez from Rappi México, Sujay Tle from Merama, and the Gutiérrez Muguerza family office. The startup offers veterinary services for pets through clinics and a platform.
An Argentine platform for agricultural commodity quality analysis, ZoomAgri received $6 million from GrainCorp, with participation from Brazilian fund SP Ventures and Artesian, who had previously invested $3.3 million in the startup in August 2021. The company uses Artificial Intelligence for grain management and develops hardware and software for crop management and traceability.
Grupo Bancolombia secured a $12 million loan for Colombian fintech Avista. The startup intends to use the amount to expand its offering of products and financial services specifically targeted at the elderly population, including credit solutions, insurance, and other related services.