Brazilian banking giant Itaú inches closer to startups

One of Brazil’s largest banks announced a new move to attract and get closer to the startup entrepreneurs and investors. Today (7), Itaú announced the creation of an initiative to expand its operations within the ecosystem. The plan seems ambitious, as it is led directly by the organization’s chief executive, Milton Maluhy Filho. The executive also announced two new hires: Anderson Thees and Manoel Lemos, partners and co-founders of one of Brazil’s best-known VC firms, Redpoint eventures, to support the plan.

The bank highlighted in a press statement that the initiative is strategic “to advance the bank’s digital and growth positioning, involving different areas of the institution”. Moreover, Itaú said it “will be built together with the various segments of the entrepreneurial ecosystem”. Market sources told Startups the idea is not simply setting up a new investment fund, but to have a broader portfolio of initiatives related to the ecosystem, both outside and inside the bank. The bank already has a corporate venture capital within its private equity arm, Kinea.

In addition, the bank believes that by hiring Thees and Lemos, it will increase the dialogue with market agents, including investors, funds, entities and entrepreneurs, who, according to Itaú, are the key focus of the initiative.

The new plan will also be led by Pedro Prates, co-founder and current leader of Itaú-sponsored entrepreneurship hub Cubo. Prates works for Itaú since 2011, and became a partner in 2019.

The financial institution did not provide further details on how the initiative will translate into practical actions. However, it isn’t that hard to imagine that the arrival of two well-known executives in the field may already be enough to send shockwaves to the market.

Big names, new paths

Anderson Thees and Manoel Lemos made a name for themselves in the investment market as co-founders and partners at Redpoint eventures. Later, the duo turned into a trio, with the arrival of Romero Rodrigues, founder of Buscapé, one of Brazil’s first success stories in the digital business scene. The two Redpoint funds raised over US$300 million in commitments, reaching a portfolio of 50 invested startups – of which three reached unicorn status: Rappi, Creditas and Gympass.

At the start of the year, differences in plans put the managing partners on different paths. In an article in February, Startups found that the three partners did not reach a consensus on raising Redpoint’s third fund, prompting the partnership’s collapse.

While the market was left wondering what would be the fate of the investors, Rodrigues grew closer to investment firm XP. The financial institution entered the venture capital market once and for all by investing in its own fund, under a closed partnership with Headline (formerly-e.ventures), led by Rodrigues.

Headline’s startup scouting will make use of XP’s platform, which can leverage business origination, with more than 9,000 investment advisors, consultants and family offices. The plan is to maintain the strategy that Redpoint has executed in its two funds, looking at early-stage companies.

Despite being hired by Itaú, both Thees and Lemos continue as managing partners of Redpoint eventures due to the contractual duty with the fund’s LPs.

A more digital and tech-driven Itaú

With the new initiative, Itaú reinforces its position in becoming a bank attuned to startups and innovation ecosystems. According to the bank’s own data, it currently has around 1,400 technology companies in its customer base.

Speaking at Tech Founders, a technology event held by the bank this week, Maluhy Filho highlighted that the institution has a credit portfolio of more than 5 billion Brazilian reais ($1 billion) in this segment.

“Since 2018, we have practically led, for the most part, more than 20 IPO transactions of technology companies, with most of the companies listed abroad”, Maluhy pointed out, as reported by Finsiders.

Another milestone for Itaú in its positioning around startups is Cubo, an innovation and entrepreneurship hub maintained by the bank that already has more than 340 members, whose companies raised more than 3 billion Brazilian reais over the last year.

Itaú’s plan to be more digital and tech-driven has even yielded some unprecedented product launches. Last month, the bank announced the creation of Player’s Bank, a new business line aimed at electronic gamers with facilities such as credit lines for the purchase of equipment.

(translation by Angelica Mari)