Venture Capital Investment In Brazil Reaches $5.2 Billion During H1 2021

Brazilian startups attracted record levels of investment as the ecosystem matures with international funds rushing to seize opportunities in the Latin American country, according to research.

During the first six months of 2021, a total of $5.2 billion was invested in startups based in Brazil, according to numbers released by open innovation network Distrito. By comparison, the total invested in the whole of 2020 – which was considered to be the best year on record for the ecosystem until recently – reached $3.5 billion.

“The success stories and constant unicorn announcements in Brazil are attracting the attention of foreign investors and that feeds back into the market,” says Gustavo Gierun, co-founder at Distrito. While 64% of the deals were concentrated in early-stage rounds, with 234 such investments announced in the first half of 2021, later-stage deals represented the bulk of the invested volume in the first six months of the year.

The report lists the 11 mega rounds that surpassed US$ 100 million in the first six months of 2021, raised by digital banking firm Nubank across two rounds ($ 1.15 billion), real estate company Loft ($525 million), cross-border payments company Ebanx ($400 million), real estate firm Quinto Andar ($ 300 million), corporate wellness operator Gympass ($220 million), logistics company Loggi ($212 million), Mercado Bitcoin ($200 million), MadeiraMadeira ($190 million), payments company Cloudwalk ($190 million), bus charter firm Buser ($138.9 million) and Hotmart ($126.5 million).

According to the report, fintech is the most active segment of the Brazilian startup ecosystem. Startups focused on financial services provision attracted around half of the volume invested in the country, with $2.4 billion spread across 72 deals.