Dealmaking fell 26% by volume and 25% by aggregate value year-over-year across Latin America in May, according to the monthly tracking published by TTR Data. 

The data include M&As, venture capital, private equity and asset acquisition operations.

Among the top six markets regionally, Brazil led both by deal volume and aggregate value, said TTR. Based on volume, Mexico was second, followed by Chile, Colombia, Argentina and Peru. 

However, based on value, Argentina took third place, followed by Chile, Colombia and Peru. 

In Mexico, 130 deals have been recorded in the first five months, down by 15.5% year-over-year, with total aggregate value of US$3.2 billion (-68%). In Brazil, there were 592 deals in the January-May period, with value data yet to be disclosed. 

The emergence of LatAm’s "emergingtechs" 

The Distrito platform mapped 2,252 so-called emergingtechs operating in Latin America at the end of March. Brazil had 71.8% of the total, followed by Mexico (7.8%), Argentina (6.1%), Colombia (6%) and Chile (4.2%).

Emergingtechs are startups focused on solutions based on new technologies, and include those known as deeptechs. Distrito considers mainly those active in the areas of AI, IoT, robotics, augmented and virtual reality, digital trust, edge, blockchain, digital twins, 3D printing and biomaterials.

In the last four years, three in 10 of the startups had AI as their main focus, said Distrito. 

The region’s emergingtechs raised over US$3.8bn in investments during the last six years. 

LatAm’s hottest ecosystems

São Paulo, Mexico City, Bogotá, Santiago and Rio de Janeiro are Latin America’s top five startup ecosystems, according to a report from Startup Genome.

The analysis takes into account each city’s “ecosystem value” in the 2H21-2023 period.

São Paulo’s ecosystem was valued at US$117bn, followed by Mexico City with US$30bn. Bogotá, Santiago and Rio de Janeiro appear with US$15bn, US$9bn and US$3bn, respectively.

Brazil’s VC and private equity scene 

During January-May, Brazil’s private equity managers invested 5.4 billion reais (US$1bn) in 29 operations, while VC funds allotted 4.2bn reais in 166 rounds.

The data is from a report by Brazilian private equity and VC association Abvcap, with figures from TTR.

Despite the number of operations being 30% lower than the same year-ago period, when 239 transactions were recorded, the amount invested was only 4.5% less thanks to bigger deals, said Abvcap.

KPTL targeting Amazon-focused startups

Brazil-based VC fund and asset manager KPTL launched a new US$30mn fund for startups focused on solutions for the Amazon rainforest.

Called Amazonia Regenerate Accelerator and Investment Fund, it is expected to cover Brazil, Ecuador, Bolivia, Peru, Colombia, Guyana and Suriname.

The fund is anchored by IDB Lab, the IDB Group's innovation and enterprise laboratory, and it will find and support early-stage firms with high potential to scale their business.

KPTL has invested in 65 companies from sectors such as agribusiness, health, forestry, climate, energy, and IoT.

Bossa fund to focus on angel investment phase

Brazil's Bossa Invest plans to accelerate investments in the angel phase of startups, guaranteeing at least 20% of its cash for investments in these types of companies, the fund said in a statement.

Bossa plans to disburse 5mn reais into 25 startups in this phase, with individual checks of up to 150,000 reais. It did not provide a timeframe for the plan.

If they show good results, companies may receive a new contribution in the 12 months following the first investment, said Bossa.

Selbetti Tecnologia closes new M&A deal

Brazilian IT integrator Selbetti Tecnologia acquired InterCompany, a startup focused on AI-based solutions for industrial processes.

The deal’s value was not disclosed. Based in Santa Catarina state, Selbetti has undertaken 36 M&As since its creation in 1999.

Selbetti said that the acquisition “represents a significant milestone in our company’s advancement in the field of artificial intelligence and information security.”

The group reported 555mn reais (US$103mn) in revenues in 2023, up 23% year-over-year, and targets 650mn reais for 2024.

Accenture concludes Soko acquisition

Accenture completed the acquisition of Soko, an independent Brazilian advertising and creative agency.

The acquisition was announced on May 2 and adds around 300 employees in Brazil. Financial details were not provided.

Pátria acquires Colombia's Nexus

Brazil’s Pátria Investimentos acquired Colombia-based real estate investment firm Nexus Capital for an undisclosed sum.

Nexus is focused on risk capital investments in the property segment in its home country and has certain infrastructure investments in Colombia and Peru.

The firm has US$800mn in assets under management.

Source: Business News Americas / BN Americas - Chile