Funding for startups in Latin America fell to a five-year low

Funding volume for startup companies Latin American countries hit a five-year low in January, with no signs of improvement in February, according to the latest report from slinghub.

the startup companies Regional companies raised $290 million in February, down 75% year-on-year. The second month of the year saw the lowest number of investment rounds since 2017, but mergers and acquisitions “proved to plateau”.

SlingHub listed 53 funding rounds for the month, down 37%. Of the total transactions, 28 were executed in Brazil and 6 in Argentina, Chile and Mexico.

Unsurprisingly, most of the funding in February went to startup companies in the seed stage. The bulk of the resources are allocated to financial technology (34% of the funded capital), followed by logtechs (19%), HRtechs (12%) and mobility (11%).

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US software and digital transformation consultancy Avenue Code, which Compass Juul Group acquired control in November, aims for 30-50% revenue growth in 2023 driven by its Brazilian operations, according to data obtained by BNamericas.

“Brazil continues to be a hotbed of expansion, particularly through alliances. In all regions where the company has offices, expansion is the focus, but Portugal, as the newest one, is also enjoying with special attention.”

The company provides comprehensive development solutions for digital transformation in all sectors. Avenue Code has 26 active clients in Brazil, where 80% of its workforce is concentrated.

Carvalho added that Portugal serves as a development hub for Europe and Canada.

Avenue Code hires specialized labor in Argentina, Chile, and Colombia, among others, under a remote model and Rounding.

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Stefanini IT Services Group has acquired cybersecurity consultancy Safeway to enhance its capabilities.

Safeway’s solutions will complement the group’s security portfolio, which also includes Intelligent Cyber ​​Defense Units and Stefanini Rafael. Acquisition values ​​were not disclosed.

With a client base of 200 customers, Safeway has provided more than 450,000 hours of consulting on fraud and cyberattack prevention, according to Stefanini.

Stefanini closed 2022 with worldwide revenues of approximately $1.2 billion. The company expects revenue to grow by 25% this year.

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Senior Sistemas, a software group based in Brazil, will invest more in solutions financial technology It plans to close acquisitions and venture capital deals in 2023.

The company’s CEO, Carlinho Castelo Branco, said in a statement about the outlook for 2023.

The company also intends to resume its IPO plans once market conditions improve.

I serve more than 10,000 clients in sectors such as manufacturing, agribusiness, logistics, construction, wholesale and distribution in Latin America. Those customers have more than 6.6 million users connected to the company’s solutions, according to Senior.

In 2022, net revenue grew by 23.3% to RO 718 million, while cloud-related revenue increased by 57.4%. The company recorded a net profit of 137 million riyals, an increase of 30.3%.

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Spanish bank BBVA will expand its support division to startup companies BBVA Stark to Colombia, following its launch in Spain and Mexico in July 2022.

It added in a statement that the unit will provide comprehensive financial services to entrepreneurs and technology companies in various stages of development.

Offerings include a full range of banking products and services, expert support and access to the tech industry ecosystem, as well as financial models such as risky debt, according to the BBVA.

“Through BBVA Spark, we want to be a bank for the Colombian entrepreneurship ecosystem, thanks to a dedicated team, a complete offer of financial services and new forms of financing with models that prioritize factors such as long-term growth potential,” said the President. From BBVA Spark, Roberto Albaladego, in a statement.

According to Mario Pardo Bayona, general manager of BBVA Colombia, there are more than 1,000 people startup companies in Colombia. He added that the volume of investment in technology and innovation has tripled in the past two years.

According to Pardo, “Colombia today has the third largest technology ecosystem in the region.”

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SAP.iO Foundry Latin America for SAP, Acceleration Module startup companies Affiliated software company, its second call is now directed at financial technology.

The program will focus on digital wallets, supply chain finance, open banking, banking as a service, and buy now, pay later.

It is the second call in Latin America. In the previous edition, launched in September 2022, the focus was on sustainable farming and optimizing agricultural logistics. By November, there were seven startup companies in the region with support from the SAP.iO foundry, according to the company.

Applications for the second call must be submitted March 24 and the program will begin in April. To see more information, click here.