A brief summary of deals in Brazil, using dealbook.co data
2017 was a special year for startups in Brazil. The “real world” economy is showing early signs of recovery, but on StartupLand, things seem to keep moving fast towards growth.
As a maintainer/curator of the the Brazil Startup Dealbook I decided to take a look at this year’s deals in venture capital and M&A in Brazil. So, here’s some interesting data about our 2017’s deals I grabbed from dealbook.co:
Top VC Rounds from 2017:
- 99 raised U$ 200m in Series C & D rounds, from Riverwood Capital, Monashees + and DiDi Chuxing and Softbank;
- Dr. Consulta raised U$90.75m;
- Movile raised $82m from Naspers and Innova Capital;
- Creditas raised U$70m in 3 rounds from several investors;
- Nubank raised $75.6m from Fundo de Investimento em Direitos Creditórios — FDIC (AGAIN!!);
- Movile raised U$53m from Naspers and Innova Capital;
- Neoway raised $45m from Endeavor Catalyst, Accel Partners, Monashees, QMS Capital, Point Break and Pollux Capital;
- GuiaBolso raised U$37.8m funds from Ribbit Capital, Omidyar Network and Vostok Emerging Finance, and FIDC.
Exits/M&A Activities in 2017:
- AppProva was acquired by Somos Educação — U$12.7 m;
- ShopBack was acquired by Linx — U$11.8m;
- Ecommet was acquired by MercadoLibre — U$11m;
- Porta dos Fundos was acquired by Viacom — $11m;
- Stoodi was acquired by Somos Educação — U$9m;
- Xtech Commerce was acquired by VTEX — U$4.2m.
Numbers are not closed yet, but… GOOD SIGNS!
2017 was a very interesting year, with slightly less disclosed investment deals and acquisitions, but exciting numbers. Looking at disclosed deals (the ones that shared their round sizes) it’s clear that it was a big year. U$992m were deployed, compared to U$1.25B in 2016.
Both numbers of investments and M&A deals are down around 20%, (189 vs 153 rounds, 38 vs 31 M&A deals), but this is probably due to closing these numbers before the end of the year and to the fact that the deals that went down in the last 2 months are probably not disclosed yet.
This doesn’t mean the number of new deals are decreasing. A lot of deals get disclosed only a couple months after they’ve happened and the Dealbook is constantly updated with deals that happened in the previous years.
Stay tuned, these numbers will be updated by end of Q1 2018.
Check Sizes Going Up!
Although check sizes remained the same in the earlier stages, and are down in Series B investments, they are significantly bigger in Series C. Which means even with a similar quantity of rounds, the check sizes are going up for disclosed deals. The average Series B round is now at U$8.57m and the Series C is at U$43.28m.
Capital Deployment Increasing on Later Stages
Although the amount of money for early stage investment (Seed/Series A) remained almost stable, it’s clear that there’s a lot of growth in later stage rounds. These tend to be bigger rounds, but last year we had several C, D & E rounds.
To 2018 and onwards!
This is the year we got our first Unicorn, 99, so it seems to be starting well! Looking forward to hear your thoughts on my analysis! I wish an amazing new year for startups and VCs in Brazil in 2018. See ya’ll!
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