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Brazil’s startup ecosystem is soaring to new heights. The only Portuguese-speaking country in Latin America was among the largest Series D rounds of Q4 2021, according to market intelligence platform CB Insights’ report State of CVC.
In November, Brazilian social commerce platform Facily closed on a $250 million Series D led by DX Ventures and Berlin-based food-delivery app Delivery Hero. The round was the fifth-largest Corporate Venture Capital-backed Series D deal in Q4’21.
Lacework, an American data-driven security platform for the cloud, lead the ranking, after raising $1.3 billion led by Sutter Hill Ventures, Altimeter Capital, D1 Capital Partners, and Tiger Global Management. Devoted Health ($1.1B), Nuro ($600M), and Anchorage Digital ($350M) got the #2, #3 and #4 spot.
According to CB Insights, Brazil also had 6 of the TOP CVC rounds of Q4’21. Facily’s Serie D and its $135 extension got the 2nd and 3rd place, followed by payments and banking platform Pismo’s $108 million Series B (4th), security tech startup Gabriel’s $12 million Series A (8th), and insurance company Azos’ $10 million Series A (9th).
The report shows that 61% of the 2021 CVC-backed rounds in Brazil were investments in early-stage startups, 18% in mid-stage, 10% late-stage, and 11% in the “other” category.
“What draws the most attention [about the Brazilian market] is that early-stage investments represent almost 2/3 of the total, which goes to show that our market is still incipient and has a lot of room to grow”, writes Cassio Spina, founder of not-for-profit organization Anjos do Brasil and senior director of consulting company ACE Cortex, via LinkedIn.
CVC globally
According to CB Insights, CVC-backed funding reached an all-time high of $169.3 billion, which is 142% higher than in 2020. A confluence of factors fueled this rapid growth, including a massive jump in million mega-rounds ($100M+) – which account for 62% of 2021 CVC-backed funding.
Last year, the US attracted $86.9 billion in CVC-backed funding, more than doubling its 2020 result ($40.5). The country had four rounds of over $1 billion to energy, IT, and healthcare companies. On the other side of the world, CVC rounds from Asia-based companies reached a record $49.8 billion in 2021. China, India, and Israel contributed to the rise, with each nation seeing CVC-backed funding more than double Year-Over-Year.
(translation by Gabriela Del Carmen)