Corporate venture capital in Brazil skyrocketed in 2021 to $622m: Distrito survey

Fintechs were leaders in number of deals, with 24 contributions, moving $249 million

Photo: REUTERS/Marcelo Del Pozo
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  • The amount invested in corporate venture capital this year is already more than triple the amount invested in 2020;
  • About 70% of the investments mapped are for businesses in the early stages.

The investments made by companies in startups in Brazil skyrocket this year, in the wake of the accelerated digitalization of businesses such as financial services and e-commerce, due to social distancing stemming from the COVID-19 pandemic, a survey showed on Monday.

According to the survey conducted by Brazilian innovation platform Distrito, in the first seven months of this year alone, the so-called corporate venture capital moved about $622 million in technology-based businesses, through 22 rounds. This is already more than three times the amount contributed in 2020, of $199 million, in 27 deals.

READ ALSO: Brazilian startups raised $484.4 million in July: Distrito

The study brings an analysis of the sector in the last 20 years, with 212 rounds of this profile, of which 162 had the transacted volumes revealed adding up to $1.3 billion.

About 70% of the investments mapped are for businesses in the early stages. Among the corporations that most bet on startup vehicles are the financial, retail and technology industries, with 16, 15 and 14 operations each, respectively.

Fintechs were leaders in number of transactions, with 24, moving $249 million. But the four transactions in the real estate sector raised even more, $379 million, including contributions such as Qualcomm‘s QuintoAndar. Another standout was the retail sector, with $206 million in 17 investment rounds.

READ ALSO: Latin America has a record of over $6 billion in investments for startups in a half year

“Increasingly, large companies have understood the approach with startups as a strategic and fundamental resource for their digital transformation,” said Bruno Pina, Distrito’s head of innovation.

(Translated by LABS)

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