Brazilian ABSeed launches a BRL 100 million fund to invest in early-stage SaaS startups

With a focused investment thesis, the Brazilian investment company has already made investments in 13 startups

Brazilian ABSeed launches BRL 100 million fund to invest in early-stage SaaS startups
Felipe Coelho, Franco Zanette, Geraldo Melzer and Marcelo Hoffmann, ABSeed's co-founders. Photo: Courtesy
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ABSeed, a Brazilian investment firm focused on early-stage Software as a Service (SaaS) startups, has just announced a BRL 100 million new fund aimed at Brazilian companies. This is the second fund set up by the company and the target is to raise BRL 150 million. 

Founded in 2018 by Geraldo Melzer, Marcelo Hoffmann, Franco Zanette, and Felipe Coelho, ABSeed set its investment thesis based on the hands-on experience of its cofounders: at the time, Melzer was working at RD Station and noticed a gap in the SaaS market and many business opportunities in many sectors. Melzer then invited Hoffmann, a lawyer who specialized in financial management and corporate governance, and administrators Zanette and Coelho, both from RD Station as well, to build the team and the company’s thesis.

With this very focused investment thesis, ABSeed brought in BRL 40 million in its first fund and invested in 11 startups – among them Movidesk, Conta Simples, SWAP, Asksuite, Aegro and GoCache. “With this thesis, we have looked at almost a thousand businesses. We have a proprietary and steady flow of opportunities, so we talk to three to four new businesses within the thesis per week,” Zanette said.

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“The support we offer is only possible by choosing to invest in a smaller number of startups so that the approach is real throughout a more extended journey,” added Melzer.

Besides, according to Melzer, the technical team’s expertise in the SaaS model helps the company to have greater predictability in its investments – the startups are chosen according to the adherence to the team’s skills and also by measuring the growth made possible by the analysis of the acquisition and revenue retention channels, an analysis process that “drastically reduces the portfolio’s mortality rate”, according to Melzer.

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ABSeed’s first exit happened last year, when Movidesk was acquired by Zenvia, in a transaction that returned more than ten times the amount invested, ABSeed said, without revealing numbers. “We have a lot of discipline in the analysis process and in the valuations. This allows us not to depend on unicorns to give exceptional returns to our shareholders,” Melzer said.

Two startups have already received funds from the new fund: SafeSpace, a platform for reporting misconduct in companies, and Gedanken, a company for supplier onboarding and risk management. Besides financing, ABSeed offers tactical-operational, go-to-market, and governance support for early-stage SaaS businesses.

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