LatAM Weekly #171

Happy Sunday!

How about starting the year by making a difference? As many of you know, I’m a “carioca” at heart, even after living in São Paulo for over six years. This year, I decided to give back by supporting RIO Endowment, where I proudly serve on the advisory board. RIO Endowment is transforming lives through education, and we’ve already awarded our first scholarships to tech students, creating real opportunities. You can join this mission and help make an impact with as little as R$20/month! Contribute today by clicking here! 

On another note, I will be a speaker again this year in the South Summit Brazil (more information on the event itself in the dedicated section below). The event has a very cool Startup Competition, open for registration until January 23rd! Finalists guarantee their participation in the event and gain exclusive access, delivering their pitches to investors, participating in side events for founders and much more. For more information, click here. Do not miss out!

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Opinions expressed here are solely my own and does not represent those of people, institutions, organizations that I may or may not be associated with in any capacity, unless explicitly stated.

As many of you know, the National Retail Federation hosted its annual event, NRF 2025: Retail’s Big Show, in New York last week. This premier retail conference brought together over 6,200 brands, featured 450 speakers, and included 200 sessions on key industry topics like AI integration, enhancing customer experiences, and emerging retail technologies. Attendees explored cutting-edge innovations, networked with industry leaders, and gained valuable insights into shaping the future of retail. Unfortunately, I was not able to go. But - you know the drill - I have eyes and ears everywhere! My good friend and Head of Growth at Cubo Itau, Marcella Falcão, attended and shared the main highlights. Let’s dig in!

1. AI Agents

Autonomous AI agents are transforming retail operations, acting as "robots with job descriptions." Key examples include Salesforce with its AI-driven customer support executing tasks autonomously and Microsoft using AI to enhance supply chain management.

2. Hyperpersonalization in E-commerce

Personalization remains pivotal for customer engagement. In product search, Polish startup Synerise tailors searches to individual preferences. In ad content: AWS and Raspberry.ai generate hyper-specific visuals.Finally, in product placement, Velou enhances product positioning in search engines.

3. Retail Media 2.0

Retail media is evolving into a dominant monetization strategy with a market value of U.S.: $55 billion, led by Amazon Ads with 77% share. In Brazil, analysts predict a $1 billion market by 2025, with Mercado Livre holding 66% market share.

4. The Future Store

Brick-and-mortar stores are transitioning into experiential hubs. These social hubs are places for customers to interact and experiment with products. Soft skills are now essential for delivering personalized customer experiences. Technology integration becomes crucial with holograms (Proto/AWS) and robotics are redefining in-store engagement.

5. Employee-Generated Content

Retailers are leveraging their workforce to enhance brand authenticity and engagement. Vanish Standard incentivized employees to promote products, driving measurable returns. This strategy underscores how motivated teams can transform customer experiences and improve ROI.

6. Omnichannel Innovation

Seamless integration of retail channels remains a key challenge.

Architectural Overhaul: Eliminating data silos and designing systems that prioritize customer journeys. Omnichannel success depends on simplifying systems while enhancing user experiences.

7. FITS Retail (Fractured, Instable, Tense, and Shifting)

The global retail landscape is increasingly polarized:

U.S. Store Closures: Net loss of 122 stores in 2024.

Brazilian Growth: +2,492 stores in 2023 (+3.6%).

2025 Forecast: Global retail growth at 4.1%, with online sales expected to grow 8.8%.

8. Productivity & Efficiency Tools

Advanced technologies are optimizing retail operations:

Inventory Management: Sensormatic/RFID and Vusion streamline processes.

Supply Chain Efficiency: Scandit and Onebeat enhance logistics.

Team Collaboration: Zello enables real-time communication and task tracking.

9. Technology Meets Humanity

“Companies love innovation but hate to fail.” – Global Amazon Store CEO.

Human-Centric Tech: Walmart’s "people-led & tech-powered" approach exemplifies the importance of blending humanity with innovation.

10. Leadership, Culture, and Change Management

The speed of technological innovation is driving profound cultural shifts. Companies are adapting structures to foster agility and authenticity. To improve workforce, current emphasis on reskilling teams to meet the demands of AI-driven transformation.

Moving on to our usual market update - let’s start with some good news! VC-backed IPOs scored a phenomenal comeback in U.S. during Q4, according to the PitchBook IPO Indexes. The basket of former startup stocks has surged 42% since October, highlighting the accelerating convergence of public and private markets. For private market participants, timely pricing insights are essential to contextualize the performance of newly public holdings. Similarly, LPs and GPs can use these tools to assess how valuation trends in public markets might impact their private investments.

Why is a U.S. index relevant to a LatAm Tech newsletter? As I often say, everything is interconnected. Strong performance in U.S. public and private markets is vital for the success of LatAm's tech ecosystem, shaping investment flows and market confidence across regions.

Moving on, Peter Walker from Carta stated in his newsletter that the year of 2024 was a solid B in venture. I tend to agree with him after going through 100+ slides in Carta’s State of Venture for 2024. Great graphs for what happened globally can be seen here. 

Exits are still a challenge. If you look at the deck, fewer funds in recent vintages have DPI. While IPOs continue to be hard, M&As are showing strong signs.

Pitchbook’s NVCA Venture Monitor confirms what I mentioned above. Markets continue to be Investor Friendly. Dealmaking remained high, aided by elevated dry powder levels, despite the lack of large exits to generate returns. Only 3.6% of exits exceeded $500 million, but they contributed nearly 79% of total exit value. Small-scale exits dominated the landscape, particularly among early-stage companies (Series A/B). Many of these were smaller M&A deals, often an alternative to outright closures. Several IPOs performed well, or at least provided investors a windfall. 

On the fundraising front, VC fundraising saw a decline in aggregate capital raised compared to 2023. Many funds struggled with extended timelines for closings, particularly first-time managers. However, larger, established funds continued to attract significant commitments, indicating sustained confidence in well-known GPs.

As always, let’s end on a high note. Despite a B in 2024, things look good for 2025. The venture capital outlook for 2025 is cautiously optimistic, driven by a 20% Q4 gain in the Nasdaq, signaling improved market sentiment and renewed IPO potential. Secondary market activity has increased, indicating rising liquidity and positioning companies for larger exits. Regulatory discussions on easing public listing requirements and supporting innovation in sectors like AI, climate tech, and fintech could further boost exit momentum.

VC funds are well-capitalized, with record dry powder ready for deployment as valuations recalibrate, creating attractive opportunities for M&A and late-stage funding. High-growth sectors such as AI and clean energy remain resilient, attracting strong investor interest. Collectively, these factors set the stage for a rebound in exits, deal-making, and market confidence in 2025.

Monday

General news:

• Big Bets raised R$150 million in the first close of its second fund, targeting R$300 million. Spectra invested R$60 million. Focused on seed and pre-seed data-driven startups, five of its 33 portfolio companies could return the full fund within three years.
• Inter introduces an international USD credit card, offering no IOF fees for purchases abroad. Initially for high-income clients, it features cashback, discounts on Brightline tickets, and perks in Miami, integrating with Apple Pay and Google Pay. Payments are linked to Inter's Global Account with up to 40 days for settlement.
• Appmax secured authorization from Brazil's Central Bank to operate as a Payment Institution, enabling direct SPB and Pix connections. With R$8.4 billion in processed transactions, its AI-powered solutions enhance e-commerce revenues.
• PagBank and Dock have been authorized as payment transaction initiators by Brazil's Central Bank, enabling direct payment processing. This move supports open banking growth and fosters innovation in digital payments.
• Biden introduces AI chip export controls for national security, which Nvidia criticized as harmful to innovation. Nvidia expressed openness to collaborate with the incoming administration for regulatory adjustments.
• John Deere partners with Starlink to bring satellite internet to rural areas, enhancing data-driven agriculture and smart farming technologies in remote locations.
• ALGEN has supported over 500 LatAm startups since 2017, helping 112 raise over $40M. The program focuses on pre-seed ventures and plans expansion in Mexico and Colombia.
• Nvidia partners with Brazilian startup Langflow to enhance real-time AI assistant solutions via its RTX-powered Project R2X. Langflow, with 40K developers globally, simplifies AI for various industries.
• Equity-based payments in Brazilian M&A deals rose from 3% to 28%, offering alternative exit strategies. Recent examples include Olga Ri's merger with Hi Pokee and Travelier’s acquisition of DeÔnibus.
• Zenvia is restructuring, cutting 15% of its workforce and shifting focus exclusively to SaaS. The move is aimed at streamlining operations and boosting profitability.

Deals:

• Capim, a Brazilian fintech, raised $11.2M in a funding round led by QED Investors, with participation from Canary, NXTP Ventures, and ONEVC. Funds will drive growth in fintech innovation.
• Clearwater Analytics acquires Enfusion for $1.5B in cash and stock, expanding into hedge funds and boosting global revenue through Enfusion’s European and Asian presence.

Tuesday

General news:

• PayPal emerged as Brazil’s most preferred digital wallet, surpassing PicPay and Mercado Pago due to its user-friendly experience and widespread acceptance.
• Pix set a record in 2024, moving R$26.5 trillion with 50 billion transactions. Its rapid adoption solidifies its dominance in Brazil’s payment landscape.
• AWS will invest $5 billion in Mexico over 15 years, boosting cloud infrastructure and contributing $10 billion to GDP. The initiative will create 7,000 indirect jobs annually, train 200,000 individuals in cloud skills by 2026, and support local projects in Querétaro.
• Ebury Bank, majority-owned by Santander, acquired ArcaPay to expand in Eastern Europe and enhance cross-border B2B payments. Ebury's FY23/24 revenue grew 8%, with Brazil now its third-largest market.
• Alprestamo raised $929K in its first CNV SME bond issuance to improve LatAm financial inclusion. The funds will enhance its platform, expand verticals, and support SMEs with tailored solutions.
• QuintoAndar is leveraging tech and AI to scale the Latin American real estate market. With R$175B in assets across six countries, it aims to enhance user experiences and launch new products.
• Grupo Pereira launched the GPS acceleration program for startups using AI, IoT, and advanced tech. Offering equity-free mentorship, applications close February 9, 2025, with the program starting in April.
• Meta responded to Brazil’s government on policy updates for Facebook and Instagram, emphasizing compliance with national laws like the Marco Civil da Internet while asserting alignment with global transparency standards.
• Friday launched bill payment services via WhatsApp using Open Finance technology, simplifying transactions and enhancing financial accessibility for users.
• Comunidad Feliz seeks $14M to expand its community management platform, which automates tasks and serves 6,000+ communities in Chile and Mexico. The company has been profitable since 2023.
• OpenAI launched an assistant feature in ChatGPT, positioning it as a competitor to Alexa and Siri. The update integrates personalized tasks, expanding its reach in the virtual assistant market.
• Venture capital investments grew 3% in 2024, driven by AI technologies. Startups in this sector attract capital as innovation and resilience fuel sustained growth.

Wednesday

General News:

• Intel announced its venture capital fund, Intel Capital, will become an independent entity with a new name and external capital attraction. Managing $5B in assets, the fund has invested $20B in startups since 1991, generating $170B in market value. Transition is set for late 2025.
• Brazilian investment banks navigated 2024 with strong fixed-income revenue of R$2.1B, compensating for weak equity markets. M&A remained steady in energy and infrastructure, but 2025 forecasts indicate challenges for fixed-income and M&A volumes.
• Connecting Food has prevented over 16,000 tons of food waste since 2016, complementing 30M meals for vulnerable populations. It connects surplus food to 630+ social organizations while promoting sustainability practices.
• FIDCs outperformed other investments in 2024 with a 14.27% return, offering individual investors structured credit receivables funds.
• Brazil's private credit market expanded rapidly, with fund managers' share of corporate lending nearly doubling to 28.8% since 2020. Record inflows into fixed-income funds are driving innovation with FIDCs, CRIs, and debentures reshaping corporate financing dynamics.
• São Paulo suspended app-based mototaxi services like 99 Moto, citing safety concerns. 99 appealed the decision, arguing it undermines mobility and economic freedom. Regulatory discussions are pending for a resolution.
• Apprenty shut down after two years. Backed by Canary and Latitud, it struggled post-pivot from online education to AI-powered employee engagement. Missteps in market validation and strategy were cited as key challenges.
• Johnson & Johnson partnered with Cubo Health to support LatAm healthtech startups in oncology, immunology, and cardiopulmonary health. This aligns with J&J’s global innovation focus and its $15.1B R&D investment in 2023.
• Media Hero achieved a 30-fold revenue growth in 2024, specializing in AI-powered media planning. Profitable and operating in Mexico, clients include Nubank and Ambev. New hire Dolores de Pauli leads partnerships.

Deals:

• Finmaq secured $29M to expand SME financing for machinery in sectors like agriculture and health. The round, led by ALIVE Ventures, supports tech-driven solutions to bridge Latin America’s $100B+ SME credit gap.
• Synthesia raised $180M in a Series D round at a $2.1B valuation. Backed by WiL, Atlassian Ventures, and PSP Growth, it plans to enhance its generative AI video platform and expand in Asia-Pacific.

Thursday

General news:

• Comunitá, Sicredi’s CVC fund, plans to expand investments in 2025, targeting early-stage B2B and B2B2C startups in sectors like education, energy, tourism, and health. With R$3.6M invested across four startups, it provides funding, mentorship, and strategic connections.
• Belvo partnered with J.P. Morgan Payments to improve recurring payments in Mexico. The collaboration enhances automation, security, and success rates in direct debit transactions, streamlining the financial process.
• Pipo Saúde grew 60% in 2024, doubling enterprise revenue and reaching R$40M ARR. Serving 160 companies and 156,000 employees, the healthtech targets R$60M revenue and breakeven by 2025.
• Microsoft CEO Satya Nadella met President-elect Trump and Elon Musk to discuss AI and cybersecurity. Microsoft committed $80B to global AI data centers, emphasizing U.S. job creation, while cautioning against stringent AI regulations.
• Yuno partnered with PayPal, adding seamless integration for businesses to access over 400M users. The collaboration supports 300+ payment methods, optimizing transactions and driving global scalability.
• Fooch, a Chilean app, democratizes home-cooked meals and reduces food waste by connecting users with local cooks. Operating in Santiago, it plans nationwide expansion by 2025.
• ViewSonic partnered with Unentel to expand in Brazil, targeting education, gaming, and corporate sectors. The collaboration introduces AI-enabled displays, eSports tools, and myViewBoard solutions with localized training and warranties.
• Elea Data Centers partnered with WEG to power its $300M São Paulo facility, set for 2026. The AI-focused site features high-efficiency transformers and cutting-edge cooling systems, prioritizing sustainability.
• Sam Altman’s Worldcoin offers up to R$700 for iris scans, sparking privacy concerns under Brazil’s LGPD. The initiative claims encryption and anonymity but raises questions about biometric data use.
• Brazil’s government issued a Provisional Measure banning Pix transaction fees, equating them to cash payments. Merchants imposing extra charges will face penalties under consumer protection laws.
• Serasa will enable real-time debt clearance and credit score updates via Pix, potentially injecting R$13B into Brazil’s economy monthly and benefiting 1.6M people.

Deals:

• Airwallex acquired Mexican fintech Mexpago, establishing a presence in Mexico’s cross-border payment market. It also secured a payments license in Brazil, accelerating its LatAm expansion.
• Colossal Biosciences raised $200M in Series C funding, reaching a $10.2B valuation. It focuses on de-extinction projects like reviving woolly mammoths and has launched ventures in plastic decomposition and biodiversity credits.

Friday

General news:

• Lavca highlighted 196 top women investors in Latin America, including 69 Brazilians, across venture capital, private equity, and infrastructure. The list reflects a 37% increase in senior roles since 2023. GO GIRLS!!!!!!!
• Insight Partners raised $12.5B across its 13th flagship fund and a new structured equity fund, positioning itself for strategic investments in high-growth sectors.
• Humand named Felipe D’Arco as Country Manager Brazil to strengthen operations and facilitate migrations from Meta's Workplace. Felipe will lead digital transformation efforts for local clients.
• Geopagos appointed Rafael Littieri as its Country Manager in Brazil. With over 23 years in finance and payments, including roles at Visa and American Express, he will drive Geopagos’ growth in this critical market.
• Private equity firms increasingly embrace AI, with 87% citing positive impacts on decision-making and portfolio management. Nearly half of firms plan to increase AI adoption to enhance deal sourcing and value creation.
• BrandLovers appointed Bruna Keiserman as COO to accelerate expansion. With experience leading Twitch and Amazon in Brazil, Bruna will drive growth for the martech, which has seen a 905% increase in creator transactions in the past year.
• Trump’s administration will prioritize cryptocurrency, planning a federal Bitcoin reserve. Bitcoin prices surged 40% post-election, and crypto firms like Coinbase support the initiative to create a friendlier regulatory environment.

Deals:

• Shield AI raised $200M, hitting a $5B valuation. Backed by investors like Palantir and Andreessen Horowitz, the defense startup develops autonomous drones and aircraft powered by its "Hivemind" tech.
• DeÔnibus, part of Israel's Travelier group, acquired BuscaOnibus to boost synergies in the bus travel market. Both platforms will operate independently while leveraging shared resources.

Tech Events Rador

I have asked you again this week on LinkedIn what tech events do you suggest for this year, here is a selection of your responses curated by me for the first half of the year. If you want to see the full list click here.

AI Salon - Rio de Janeiro

Dates: February 4

Location: Rio de Janeiro, Brazil

Description: Inaugural AI Salon in Rio de Janeiro, part of a global network connecting AI founders, builders, investors, and partners. AI Salon is your gateway to innovation, collaboration, and growth within the AI ecosystem.

​AI Salon was created by Jeff Abbott, founding partner at Blitzcaling Ventures in Silicon Valley, and is now present in 37 cities worldwide; our community has hosted over 3,300 participants and supported 190+ startups.

More info

SXSW (South by Southwest)

Dates: March 7-15

Location: Austin, Texas

Description: South by Southwest® dedicates itself to helping creative people achieve their goals. Founded in 1987 in Austin, Texas, SXSW® is best known for its conference and festivals that celebrate the convergence of tech, film, music, education, and culture

More info

South Summit

Dates: April 9-11

Location: Porto Alegre, Brazil

Overview: South Summit Brasil is one of the main innovation and technology events in Latin America, bringing together startups, investors, companies and global leaders to foster connections and explore business opportunities. Held annually in Porto Alegre, the event is an extension of the original South Summit, started in Madrid, and highlights the potential of the Brazilian and Latin American innovation ecosystem. With a program that includes lectures, panels and startup competitions, South Summit Brasil promotes the exchange of ideas, drives innovation and puts Brazil on the global technology map.

More info

Brazil at Silicon Valley

Date: April 21-23

Location: Sunnyvale, California

Overview: Brazil at Silicon Valley is an annual conference organized by Brazilian students from Stanford and Berkeley universities, with the aim of connecting the most influential Brazilian leaders and Silicon Valley. Held in California, the event brings together entrepreneurs, investors and academics to discuss the future of innovation and development in Brazil, addressing topics such as technology, sustainability and digital transformation, promoting dialogue between the Brazilian ecosystem and global trends.

INVITE ONLY

Latin American Forum by Riverwood

Dates: April 24-25

Location: Miami

Description: off the record gathering with the main stakeholders, founders, and service providers of the tech ecosystem in Latin America, organized by Riverwood.

INVITE ONLY

Web Summit Rio

Date: April 27-30

Location: Rio de Janeiro, Brazil

Web Summit Rio is the Brazilian edition of one of the largest global technology and innovation events, known for bringing together startups, investors, company leaders and sector enthusiasts. With a program that includes lectures from renowned experts, panels on emerging trends and networking opportunities, Web Summit Rio has established itself as a strategic space to boost ideas, promote partnerships and connect the global innovation ecosystem.

More info

Itau BBA Fifth Annual Tech Summit

Date: May 13

Location: New York

Description: An afternoon in New York with the main founders & funders of LatAm with panels and 1:1 sessions.

INVITE ONLY

VTEX Day

Date: June 2-3

Location: São Paulo

Description: Considered one of the largest digital commerce events in the world, VTEX Day brings together big names in retail, including customers, suppliers and influencers, in an environment dedicated to innovation and knowledge. The event is an opportunity to explore solutions, discuss trends, strengthen connections and gain valuable insights to boost business.

More info

FEBRABAN Tech

Date: June 10-12

Location: São Paulo

Description: FEBRABAN Tech is a fundamental event for the financial sector, bringing together banks, fintechs, financial institutions and experts to debate the innovations that are shaping the future of the market. Held annually by the Brazilian Federation of Banks (FEBRABAN), the event reached a record of 55 thousand visitors in 2024.

More info

Others: Canary Summit 2025, H4Results 2025, AI Health Frontiers at Cubo (Sao Paulo), 16 events by StartSe, DeepTech Days (March), Argentina Tech Week (May)

WHAT AM I READING?

• TechCrunch:  TikTok is restoring service in the U.S.
• CrunchBase: AI Accelerates Embedded Finance And Loyalty Battles Get Personal: Payments Tech Predictions For 2025
• Carta: State of Startups 2024

WHAT AM I LISTENING TO? WHAT AM I WATCHING?

• Joe Rogan Experience - Interview with Mark Zuckerberg
• ItauViews: Bolsa a 145 mil pontos? (PT ONLY)

QUOTE OF THE WEEK:

"Never allow someone to be your priority while allowing yourself to be their option." - Mark Twain