ONEVC, a venture capital fund headquartered in Brazil and the United States that usually invests between $ 400,000 and $ 1 million at the Pre-Seed and Seed stages, launched its second investment fund aimed at early-stage startups in Latin America.
The venture capital fund did its first close of around $ 18 million and expects to close at up to $ 40 million. The second fund will be allocated 65% to Brazilian startups and 35% to early-stage startups from Colombia, Chile and Mexico. ONEVC targets 18 to 25 companies.
Bruno Yoshimura, ONEVC’s co-founder with Alexandre Noschese, Arthur Brennand and Eduardo Campos, told LABS that the firm looks closely at tech companies focused on Software as a Service (SaaS) and Infrastructure as a Service (IaaS), and companies such as B2B and B2C fintechs, proptechs, agtechs and martkeplaces. ONEVC is also studying investing in insurance techs, “this is our bet, we see interesting regulatory changes in Brazil and Latin America in this area,” he said.
Together with its first closing, ONEVC has already secured 3 investments for its new fund in Brazilian startups: a fintech focused on the health market, which offers credit for access to popular health clinics; a legal tech aimed at a potential target audience of more than 70 million Brazilians and a social-commerce startup.
When investing in a startup, Yoshimura says that ONEVC contributes more than capital, but also helping with talent recruit – “we help to hire senior professionals, to make connections and to build a quality team” – and bringing investments from American funds.
The potential of Latin America
ONEVC’s bet on the Latin American innovation and technology ecosystem, and especially in Brazil, has a good reason. Yoshimura believes that the Brazillian market has reached a greater maturity compared to its neighbors.
“We have seen companies that raised a venture capital round six or five years ago making an IPO at B3, which was previously unthinkable. And this is great for the ecosystem because companies don’t have to be huge to go public abroad. Brazil also has a lot of entrepreneurs who launched a second startup, who already have the startup experience. This is less common in Chile and Mexico, for example.”
On the other hand, these countries attract more American funds. Yoshimura explains that American funds “lost the Brazilian timing” and now the country already has consolidated funds, which compete directly with American funds. “Now, these funds are betting on Mexico and Chile. We work collaboratively with them, so it makes sense for us to invest in these countries as well.”
According to ONEVC, the number of deals analyzed in Mexico, Colombia, and Chile has drastically increased in the past two years. Recently, ONEVEC brought to its portfolio the first Chilean company, a startup called Houm, which provides an all-in-one solution that helps landlords find tenants and buyers with one click.
Most of the capital raised so far for the second fund has come from existing investors. ONEVC’s investor base is composed of large and well-known families in Brazil, a large multi-family office in Europe, successful tech entrepreneurs, both from Latin America and the United States, and some General Partners from large funds from Silicon Valley.
ONEVC‘s first investment fund was launched in 2019 and invested $ 38 million in 24 companies. Of these, 14 have already raised rounds. According to the firm, the startups of the ONEVC portfolio raised more than $ 133 million after the original investments so far.