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Brazilian startups raised $ 8 billion in 2021: Distrito

Inside Venture Capital Report points out the strong footprint of global funds and, in particular, SoftBank in late-stage startups in the country

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The Brazilian innovation business keeps drawing the attention of global venture capital firms like never before, shows the most recent report by Distrito. According to data from the Inside Venture Capital Report, released this Wednesday (3), the month of October 2021 registered US$ 779 million invested in Brazil-based startups, spread over 53 deals.

Thus, startups in the country surpassed the mark of $ 8 billion raised in 614 deals until October — a 119% growth compared to the volume of capital raised throughout the year 2020 (US$ 3.6 billion).

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During the presentation, Distrito’s co-founder Gustavo Gierun highlighted some of the funding rounds closed in October, such as the investment of US$ 108 million in the banking technology platform Pismo and the raising of US$ 75 million from Pipefy, among others.

In both transactions, there is significant participation of the SoftBank fund for Latin America. “Something that we had already pointed out in previous months, SoftBank is emerging as one of the main investment leaders in the region, in particular, for consolidated companies, in the so-called late-stage”, explains Gierun.

In addition, the District’s co-founder points out that the supply of more abundant resources means that there is greater competition between venture capital funds, which makes startups have more money at their disposal.

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In the expert’s view, this is proof of the maturity of the Brazilian innovation ecosystem. “Brazil is no longer a promise, its a reality. We are in a very intense and aggressive growth rhythm and we can match the biggest innovation ecosystems in the world in number of transactions and funding”, says Eduardo Fuentes, responsible for the Inside VC report.

The report also points out the most interesting sectors until October 2021, considering the investment volume:

  1. Fintechs — $3.2 billion;
  2. Retail Tech — $1.04 billion;
  3. Real Estate—$1 billion;
  4. Edtech—$552 million;
  5. Mobility — $366 million.

The health (Healthtech) and marketing (Martech) sectors also stand out in terms of volume of capital funding rounds: 47 and 39, respectively.

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