LatAm Tech Weekly #174

Happy Sunday!

While some people say January felt like a lifetime, I think it flew by. And just like that, we’re officially in February—right as the numbers for the venture landscape in January 2025 roll in.

Beyond my 9-to-9 job, my week was all about following DeepSeek’s developments. Anytime I had a moment—in transit, running, cycling, or during lunch—I was listening to the latest podcasts and reading up on the topic. I wanted to highlight two standout podcasts from the week. First, BG2Pod on DeepSeek was incredibly insightful. Bill Gurley and Brad Gerstner tackled the subject in an objective, realistic way while also tying it to the political landscape in the U.S. It was a great listen.

For a much deeper (and way more technical) dive, Lex Fridman’s podcast was excellent. It’s a five-hour episode, and while I only got through about three, it provided solid technical background. Below are the links to the podcasts and papers I read. And following the huge success of my last video, I plan to summarize everything I’ve learned in another video next week. Stay tuned!

On another note, Grupo Boticário is looking for startups to join its beauty and retail acceleration program. Applications are open until February 12. So if you fit the bill, hurry and sign up!

Follow me on LinkedIn , Instagram or X for daily updates!

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.

Still on the DeepSeek theme—while I’ll spare you the deep dive and summarize everything in an upcoming video—there are a few key takeaways worth highlighting. China now ranks second only to the U.S., with 7 of the top 21 AI models. OpenAI’s o3 and o1 continue to lead the frontier AI race, but DeepSeek’s R1 and V3 aren’t far behind. Notably, Chinese models made significant strides in 2024, narrowing the gap with their U.S. counterparts. When it comes to reasoning models specifically, China dominates: 4 of the top 5 reasoning AI models come from Chinese labs. It is important to point out, however, that as of February 2025, we haven't seen any significant changes in OpenAI’s secondary prices, and market activity remains subdued. Secondary investors typically follow the sentiment of private investors, and for now, many are adopting a wait-and-see approach. Below are two figures illustrating these trends.

Per Crunchbase’s recent article on global venture funding for January 2025, total funding rose 6% to $26B, with healthcare and AI leading the way. AI startups—including Anthropic, ElevenLabs, and Hippocratic AI—raised billions, while the U.S. market remained dominant, attracting over 60% of global venture funding. Although AI grabbed the headlines, healthcare startups actually topped the charts, securing $9.4B (36% of total VC funding). By comparison, AI startups raised $5.7B, representing 22% of January’s total investment. When looking at Latin America, activity was also strong during the month. Notably, Corpay acquired Gringo for more than BRL 1bn and rounds of companies such as Jota, Neofin and B4A occurred. It looks like a good start of the year, I guess we will wait and see!

To wrap up, I was fortunate to get my hands on Volpe’s Letter 8, which included a 2H 2024 review and an investment outlook. While the letter isn’t public, here are a few key takeaways. Latin America’s VC market reached $4.5B in 2024, marking a 6.6% increase from 2023, with 697 transactions. Notably, VC funding has remained an accessible and reliable financing source for entrepreneurs, even as equity markets have been effectively closed to new IPOs—Brazil experiencing its longest IPO drought in decades, while volumes remain low across the region. Despite solid economic growth, both the Brazilian Real and Mexican Peso struggled in 2024, depreciating 21.8% and 18.3% against the U.S. dollar, respectively. Meanwhile, looking at the positive side, several Latin American tech companies saw their U.S. dollar valuations increase, reinforcing the thesis that exceptional growth can outpace currency devaluation. That is, I continue cautiously optimistic on the opportunities in the region despite the macro flows.

Monday

General news:

• General Catalyst, a major VC firm, is launching GC Wealth, a wealth management service for founders and entrepreneurs. Led by Dave Breslin (formerly of First Republic Bank), the initiative is backed by a 20+ person team. The firm is also developing a program to invest in emerging venture funds, focusing on seed-stage and first-time managers.
• PilotIn, a fintech founded by Ingrid Barth, former president of Abstartups, is transforming credit access in Brazil using Open Finance and AI. By leveraging alternative data, it enhances credit assessments for individuals without formal income proof. Operating on a B2B model, PilotIn already serves three clients and aims to reach 20 by 2025. Notably, Waze co-founder Uri Levine is an advisor.
• Mercedes Bent, partner at Lightspeed, argues that AI will increase workloads rather than free up time. She notes that past technological advances have extended working hours, especially for knowledge workers. Since the 1980s, daily work hours have risen for highly educated professionals, and she predicts that AI's productivity gains will follow the same pattern.
• Startups are increasingly leveraging WhatsApp as a core platform for delivering innovative solutions. Companies like Magie, Jota, and Alfredo have integrated their services into the app, offering financial assistance and personal task management. This strategy capitalizes on WhatsApp's widespread daily use in Brazil, enhancing user engagement by meeting customers where they already are.
• Banco Central will allow Brazilians to pay boletos using Pix via a QR code starting February 3, 2025, as per Resolution BCB nº 443. This integration aims to merge Pix’s speed and convenience with the broad adoption of boletos. The update also includes a new dynamic boleto to enhance security against duplicate payments, modernizing Brazil’s financial ecosystem.
• Betterfly is expanding into Mexico, focusing on AI-powered insurance distribution and transitioning to a SaaS model. This approach allows partners to co-create and offer customized insurance solutions, improving scalability and global reach. The company sees AI as a key driver in delivering personalized services.

Deals:

• Involves, a Brazilian trade marketing SaaS, raised R$70M and acquired Chilean competitor Datamind to boost its LatAm expansion. The deal adds Datamind’s retail analytics tools to Involves’ portfolio, strengthening its footprint in 24 countries with clients like Unilever and Pepsico. Datamind’s R$13M revenue will bolster Involves’ R$127M in 2023 revenue, with a goal of R$350M within five years, 30% from international markets.
• BYX Capital has acquired Nvio, a Direct Credit Society previously owned by Bitso, to enhance its banking infrastructure and expand into secured credit products like home equity, vehicle financing, and card receivables. The deal awaits Central Bank approval before finalization.
• Banca.me, a Chilean fintech, has secured $3M in funding after achieving 400% growth. The company surpassed $4M in loans, launched a new SaaS vertical, and is expanding financial inclusion using AI and Open Finance, maintaining a 2.14% delinquency rate. Next up: launching BNPL services in 2025.
• Kigüi, an Argentina-Mexico startup, raised $500K to expand its AI-powered B2B model aimed at reducing food waste. Now rebranded as Kigüi For Business, it partners with retailers like Walmart, optimizing inventory to ensure 75% of near-expiry products are sold, cutting waste by 30%.
• Taxflow, a Colombian-founded startup, raised $750K to disrupt accounting in the U.S. with AI-powered automation. Led by Felipe Salinas and Julián Arango, Taxflow enhances efficiency without replacing accountants. The company, backed by Platanus Ventures and BFF, is targeting a trillion-dollar industry facing a talent shortage.

Tuesday

General news:

• Itaú Unibanco joined Stanford’s Human-Centered AI Institute, becoming the first Latin American company in the initiative. The partnership will focus on responsible AI development and financial service innovation.
• CloudWalk, owner of InfinitePay, posted R$2.7 billion in revenue and R$339 million in net profit for 2024, up 67% YoY. The company attributes its growth to AI and blockchain, with 50% of revenue from recent products like smart credit and instant payments.
• Ximple launched a credit card to expand its lending capabilities in Mexico. Partnering with DOCK and Mastercard, Ximple aims to increase credit access and financial inclusion across 75,000+ locations.
• Revolut is preparing to enter Peru, focusing on digital banking services. The neobank aims to obtain a banking license and drive financial inclusion through user-centric solutions.
• Open Finance is transforming the financial sector by enabling secure data sharing between institutions. Overseen by Brazil’s Central Bank, the system fosters competition, innovation, and personalized financial services. Transactions occur via encrypted APIs, ensuring security while enhancing customer experience and financial product accessibility.
• Leonardo Chaves has been appointed to lead Okto’s operations across Latin America. With over 20 years of experience at Philips, Cielo, and Ingenico, he aims to establish Brazil as a regional hub. This follows Okto’s acquisition of Brazilian fintech U4C, strengthening its presence in the region.
• Australia has banned DeepSeek's AI technology from all government devices, citing national security concerns. Home Affairs Minister Tony Burke deemed it an "unacceptable risk," following similar restrictions by Italy and Taiwan. The ban does not apply to personal devices.
• Rockwell Automation appointed Leandro Kruger as Regional Vice President for Latin America. With 23 years in industrial automation, he aims to integrate AI-driven autonomy into manufacturing. Previously serving as Regional Director for Brazil, Kruger led significant business growth and will now be based in Weston, Florida.
• Vertigo Technology named Izael Effemberg as Head of Product and Strategy. With 12 years in tech at companies like ThoughtWorks, iFood, and Creditas, he aims to align AI with DevOps for continuous workflows and democratize advanced product management.
• Solana APEX is landing in Mexico City on February 7, gathering key players like Binance, Bitso, and Helium to drive Web3 adoption. Discussions will focus on stablecoins, digital payments, and decentralized infrastructure, reflecting Mexico's growing crypto scene.

Deals:

• Split Risk raised R$50M to expand its insurance-as-a-service platform. Backed by HSR Soluções and La Barca Empreendimentos, the insurtech will invest in technology and reserves, targeting R$500M in issued premiums by 2026. Its subscription-based model attracts first-time insurance buyers, with over 65% of clients new to the market.
• Outscape raised $600K to expand its modular eco-lodging concept in Chile and the U.S. Backed by SDK’s Sustainable Tourism Fund, the company will scale from 30 to 200 tiny-home-style retreats over five years, targeting U.S. national parks.
• Eywa Biotech raised $810K in pre-seed funding to develop biotech-based psychedelics for mental health treatment. The startup aims to scale production and accelerate clinical trials, with plans for a $4M seed round and future expansion into neurodegenerative diseases.

Wednesday

General news:

• Itaú posted a record profit of R$41.4 billion in 2024, including R$12.2 billion in extraordinary dividends. While the bank saw credit growth and cost reductions, it expects lower risk exposure in 2025. Itaú also announced a 10% stock bonus for shareholders.
• Widelabs is accelerating its growth to become Brazil’s leading AI company, positioning itself as the country's answer to OpenAI. The company is expanding partnerships and infrastructure to meet the increasing demand for localized AI solutions, aiming to bridge the gap between global advancements and the Brazilian market.
• Hanu is redefining corporate wellness in Latin America with its gamified fitness and well-being platform. Originally a home-fitness streaming service, it now operates as a SaaS model for businesses. With over 200,000 users across the region, Hanu has expanded to Colombia, Chile, and Brazil and aims to surpass 500,000 users by 2025 without raising new funding. Its next move: entering Mexico through local partnerships.
• Brazilian startups are growing but face major challenges in funding, cybersecurity, and regulation. A study found that 68% of startups haven't received external investment, while 51% struggle with high security costs. Cyber threats, including bots and ransomware, impact 25% of companies, and only 31% are LGPD-compliant. Despite this, 70% plan to boost data protection, and 45% aim to leverage AI for security.
• FinMe is aiming to boost real economy projects as a crowdfunding platform and investor representative (RI). The fintech seeks to connect investors with businesses that have tangible economic impact, offering a scalable and transparent financing alternative.
• Fretadão has appointed Alexandre Waclawovsky as CRO to lead its growth strategy and expand its corporate mobility solutions. With experience at iFood and Loft, he will strengthen the company’s market positioning.
• Arco Educação is set to invest R$1.2 billion in 2025, marking its largest investment to date—a 64% increase from 2023. The funds will focus on technology and AI integration in educational materials, aiming for full AI integration by 2026. The company anticipates 15% revenue growth, reaching R$3 billion.
• Shopee doubled its sales in Brazil in 2024, reaching R$60 billion, making it the country’s second-largest e-commerce platform. However, logistics and infrastructure challenges remain key hurdles. Shopee’s average sales price is significantly lower than Mercado Livre’s, signaling a focus on lower-value products. The company plans major investments in distribution centers and logistics technology to attract premium customers.
• Do Payment is expanding to the U.S. and Brazil in 2025 after securing SEC approval. The real-time payments fintech specializes in solving delays for industries like e-commerce and online betting. Already operating in Peru, Chile, Colombia, Mexico, Ecuador, and Panama, the company expects 30% growth in 2025, with Brazil as a key priority.
• Provence Partners doubled its portfolio to 28 startups but is maintaining its investment ticket size at R$5 million. The VC firm remains focused on early-stage B2B startups, balancing growth and financial discipline despite the larger portfolio.

Deals:

• Neofin raised R$35 million in an investment led by Quona and Upload Ventures. Founded in 2022, the fintech uses AI and financial CRM to enhance credit collection and client communication. The new funds will develop an AI-driven credit renegotiation portal and expand integrations with Banco do Brasil and Itaú. Neofin currently processes 80,000 transactions per month and plans to double its tech and data team.
• Quartzo Capital acquired Patriarca Investimentos, expanding its assets under management to R$17 billion. The deal strengthens wealth management and alternative investments, with Patriarca’s team and client portfolio fully integrated. Quartzo, founded in 2020, continues to focus on high-net-worth individuals.

Thursday

General news:

• Spain’s Mundi Ventures is launching a new fund focused on Brazil and Latin America, investing $3M-$5M in Series A and B insurtechs, fintechs, and healthtechs. Backed by insurers like Mapfre and Generali, the fund aims to support startups using tech to reshape insurance. Set to launch in March, it targets 15-18 companies by 2028. Mundi will also open a Miami office to strengthen LatAm-Europe ties.
• Chile is set to implement Open Banking under the 2026 Fintech Law, transforming financial services through secure data sharing. The initiative will enhance credit access for SMEs, optimize financial management, and boost fintech growth. Experts highlight its potential to drive innovation while addressing cybersecurity and regulatory challenges. With fintech adoption in Chile up 29.5% in two years, the new framework aims to foster inclusion and competition. Collaboration between traditional banks, fintechs, and regulators will be key to its success.
• Mexican healthtech Sofía is expanding into mental health, offering SMEs unlimited access to affordable therapy. Backed by AI, its platform optimizes virtual care, now integrating emotional well-being tools. CEO Arturo Sánchez Correa sees this as a game-changer for proactive mental health support. With recent funding, Sofía aims to scale its services, targeting SMEs and large firms. The startup seeks to become the go-to healthcare solution for Mexico’s workforce.
• Grupo Boticário plans to invest R$100M in startups over the next four years through its CVC fund, focusing on beautytechs, retail techs, and fintechs. Investments will be up to $2M per startup, with minority stakes. The first deal was with Haut.AI, an Estonian AI startup for personalized recommendations. Beyond CVC, the group runs an equity-free acceleration program, now open for its fifth edition until February 12.
• Plastic Bank has paid over R$2.5M in bonuses to waste collectors in Brazil through blockchain-tracked recycling. In partnership with IBM, the startup has prevented 7B plastic bottles from polluting oceans. With 55K collectors globally, it boosts incomes by up to 40%. Its blockchain system ensures full traceability, promoting transparency and sustainability. Backed by SC Johnson, Henkel, and major brands, it advances the circular economy.
• Braskem is shutting down Oxygea, citing capital optimization, but the CVC fund defends its legacy. Despite its short lifespan, Oxygea claims a successful model in venture building and acceleration. The fund had $150M to invest over five years and backed multiple startups. While ending, Oxygea ensures support for teams and portfolio companies. Braskem insists innovation and sustainability remain strategic priorities.

Deals:

• Nexpon completed its first exit with the sale of BuscaOnibus to DeÔnibus, reinforcing media-for-equity as a growth driver in Brazil. The deal validates Nexpon’s investment strategy, showing the potential of media as a value-generating tool for startups. Media-for-equity is gaining traction in Brazil, with players like RBS Ventures and Globo Ventures entering the space. Nexpon now holds six startups in its portfolio and plans further investments in 2025.

Friday

General news:

• Bruno Serra, CIO at Itaú Asset, sees Brazil's risk premium rising and is eyeing tech investments. He warns that fiscal uncertainties are pushing up long-term interest rates, impacting valuations. Despite this, he believes tech stocks may offer attractive opportunities amid market adjustments. Serra's stance signals a shift in Itaú Asset’s strategy as macro risks evolve, with investors watching how this bet on tech will play out.
• Amazon has launched operations at its largest fulfillment center in Brazil, a 75,000 m² facility in Cajamar, built for R$400 million. The site remained inactive since 2022 under a mothball strategy, with Amazon paying rent while preserving the asset. This move strengthens its logistics network as it competes with Mercado Livre, which plans to expand from 10 to 21 centers by 2025. The launch signals a rebound in warehouse demand post-pandemic, with Cajamar and Guarulhos leading the trend.
• Trílogo, a B2B platform designed to streamline maintenance services, is expanding internationally after solving a major issue faced by businesses in sourcing reliable professionals. Created by João Vitor Moraes, the platform connects clients with service providers and tracks projects in real-time. With 7,000 suppliers and clients like Localiza and SmartFit, the platform is growing rapidly in Latin America. Trílogo aims to scale further by bringing innovative solutions to both business and consumer markets.
• A MOTIM study found that 75% of investors see reputation as key to attracting deals, yet struggle to support portfolio brands. While 91% believe strong communication boosts fundraising success, investors rated their readiness to help with branding at just 5.3/10. While VC and CVC funds prioritize their own image, they rarely extend branding support to startups. This gap presents an opportunity to enhance smart money strategies and market credibility.
• Brazil’s central bank will allow users to request Pix refunds directly through their bank apps, streamlining the dispute process. The update enhances consumer protection by making it easier to recover funds in cases of fraud or errors. Banks must implement the feature by May 2025, with gradual adoption starting this year. The measure aims to increase trust in the instant payment system, with refund criteria and procedures to be defined by each institution.
• KIT Global expands to Mexico, making it its LatAm hub for performance marketing technology. With over 20 years of experience in Indonesia and India, the platform offers advanced tools for digital campaigns in sectors like logistics and retail. It streamlines workflows, enhances automation, and optimizes marketing without extra costs. The move reflects KIT Global’s strategy to combine global expertise with local market insights while ensuring data security and compliance with regional regulations.
• Shein is reportedly lowering its IPO valuation again, now aiming for less than $60 billion, down from a previous $66 billion target. The fast-fashion giant faces regulatory hurdles in the US and shifting investor sentiment. Originally eyeing a $100 billion valuation in 2022, Shein has scaled back expectations amid market uncertainty. The company remains a dominant player but must navigate geopolitical and economic challenges, with the IPO's final valuation set to test investor confidence in its long-term growth.

Deals:

• Afinz acquired JoinKey, a platform specializing in sales and receivables reconciliation, strengthening its position in financial services. The deal aligns with Afinz’s strategy to expand its solutions for merchants and enhance payment management. JoinKey's technology will integrate with Afinz’s ecosystem, boosting efficiency and automation. The acquisition reflects ongoing consolidation in Brazil’s fintech sector. Financial terms were not disclosed.
• Octágora raised R$1.4 million in a pre-seed round to expand its remote and visual tech support solution. With clients like Claro, Comgás, and Electrolux, the startup leverages AI and AR to cut costs and boost efficiency. The funding, led by BVC, will support new features and commercial expansion. The company is betting on smart glasses and generative AI to optimize service, with a goal to double in size within two years.

Tech Events Rador

I have asked you again 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.

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

APIX

Date: May 15

Location: São Paulo

Description: Over the last decade, APIX has become one of the most anticipated global events focused on APIs and Integrations and its role on business strategies. A dynamic day filled with knowledge sharing and networking for professionals seeking new connections, global trends, partnership opportunities, and valuable technical and business insights regarding Open Finance, Partner Ecosystems, Legacy Modernization and Digital Experiences.

MORE INFO SOON!!!

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?

• Crunchbase: DeepSeek Shakes Up AI Landscape But US Still Dominated Venture Funding In January
• 365 Science: DeepSeek vs OpenAI: Which Is the Best AI Model?
• Pitchbook: A Lack of Pathway From US CVC Investments to an Eventual M&A
• ChinaAI #298: A Rejoinder on DeepSeek and export controls
• Launchbay Weekly Newsletter
• Trend Override by Leonardo Dawaji: Searching… Seek & Destroy

WHAT AM I LISTENING TO? WHAT AM I WATCHING?

• BG2 Pod - DeepSeek, Open Source, Tariffs - MUST LISTEN
• Lex Friedman: DeepSeek, China, Open AI… 

QUOTE OF THE WEEK:

"A.I. incumbents see open-source models as 'their biggest threat' and are turning to lawmakers to fight it."  - Bill Gurley