Business

Brazil's Honey Island and 4UM launch BRL 100 million fund to invest in fintechs and SaaS B2B

The fund intends to invest in up to 15 early-stage technology companies, with pre-seed and seed funding of between BRL 1 million and BRL 5 million

Leonardo Bugoszewski, partner and CEO of 4UM Investimentos; Leonardo Jianoti, partner at Honey Island Capital; and Mariana Foresti, partner at Honey Island Capital. Standing is Maurício Bianchini, Wealth Management at 4UM Investimentos. Photo: Courtesy/Honey Island
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  • The companies are looking for startups that operate with innovation in payment methods, investments, credit, crypto assets, foreign exchange, and insurance;
  • Honey Island’s first two investment vehicles made 15 investments, with BRL 15 million invested.

Brazil‘s venture capital firm Honey Island Capital – created by EBANX‘s founders – and the manager 4UM Investments, announced on Friday a new investment fund of BRL 100 million to invest in fintechs and B2B SaaS startups.

The fund intends to invest in up to 15 early-stage technology companies, with pre-seed and seed contributions between BRL 1 million and BRL 5 million, and co-invest in Series A and B rounds over the next 4 years.

The companies are looking for startups that operate with innovation in payment methods, investments, credit, crypto-assets, foreign exchange, and insurance.

READ ALSO: Open banking’s aftermath, startups surf the innovation wave in the insurance sector in Brazil

For Leonardo Jianoti, partner at Honey Island Capital, the innovation agenda of Brazil‘s regulators, with initiatives such as PIX and Open Banking, and the maturing of new technologies such as blockchain open up space for the development of new solutions. “Digital financial services enable companies in other sectors to have an increase in scale and efficiency, reaching new customers, markets, and verticals,” he said in a press release.

“Understanding and being inserted in the innovation and technology ecosystem is increasingly important for identifying the best investment opportunities, both in nascent companies, the focus of Honey Island by 4UM, and in public companies, the focus of our equity funds, which increasingly coexist with threats and opportunities coming from this space,” added Leonardo Boguszewski, partner and CEO of 4UM.

READ ALSO: A new chapter in the battleground between incumbents and fintechs in Brazil: prepaid card interchange fees

Honey Island Capital partner Mariana Foresti explains that the fund is “made by and for entrepreneurs and has the purpose of helping founders make the best decisions from day one, with the hands-on experience of those who have already undertaken and led companies.”

Honey Island’s first two investment vehicles have made 15 contributions, with BRL 15 million invested. In the company’s portfolio are or have been startups such as Omnichat, Juno, TROC, Tecnofit, Kyte, Comunica In, and Transfeera.

READ ALSO: EBANX acquires B2B fintech Juno in Brazil to boost its local payments solution

The BRL 100 million fund is in its final fundraising stages. Investors will include 4UM and Honey Island Capital partners, family offices, and individual investors, including mentors and entrepreneurs active in the Brazilian innovation ecosystem.

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