“Time is born in the eyes, everybody knows that” - Julio Cortázar
November 23, End Of Day
Cirkula: Cirkula, operating from Lima, Peru, is making significant advances in the FoodTech and Waste sectors by eliminating food waste in LATAM restaurants and stores. Their innovative approach focuses on reducing food waste and increasing profits by selling surplus quality food. Cirkula has established partnerships with Sodexo and pilots with Dunkin’ Donuts and Accor, showcasing their effectiveness. They emphasize selling the exact product rather than a "surprise bag," having saved over 250k products and more than 35 tons of food. With a network of over 400 stores and restaurants, Cirkula is actively transforming food waste management and contributing to a more sustainable future. Dive deeper into the case here.
Einsted: Einsted is making strides in the Biotech and Climate sectors with its innovative "Last-Mile Hydrogen" solution for industrial decarbonization. Their technology transforms methane into hydrogen, which is then reused for combustion, while carbon is fixed into graphene. This process is not only low in operating costs and environmentally friendly but also targets clients responsible for approximately 20% of global emissions. Einsted's on-site hydrogen production eliminates the need for transport, further reducing emissions. With a focus on efficiency and sustainability, Einsted is positioned to make a significant impact in reducing industrial carbon footprints. Dive deeper into the case here.
Recylink: Based in Santiago, Chile, Recylink is revolutionizing waste management with its tech-driven ecosystem. This B-Corporation, profitable since July 2023, connects waste generators, transporters, and destinations, improving waste management communications. With a 2x YoY revenue growth and only a 2.3% churn rate since 2021, Recylink demonstrates a strong market presence. Their solution not only streamlines waste management but also contributes to sustainability, making a significant impact in the Waste, SAAS, and sustainability sectors. Dive deeper into the case here.
Dive deeper into other fundraising firms in latam here.
The "CB Insights Latin America Venture Report for Q3 2023" provides a comprehensive analysis of the venture capital landscape in Latin America during the third quarter of 2023. Here are five key insights or takeaways from the report:
1. Surge in Funding Led by Brazil: There was a significant 101% jump in quarterly funding in Latin America, reaching $1.2 billion after two depressed quarters. Brazil played a major role in this surge, with Brazilian startups raising 60% of the region's funding, amounting to $709 million. This represents a 114% increase quarter-over-quarter. Despite this, the number of deals in Brazil fell by 25% during the same period.
2. Dominance of Early-Stage Deals: Early-stage rounds constituted 82% of the total deal share year-to-date, potentially reaching a five-year high. These early-stage deals also experienced the smallest decline in deal size compared to mid- and late-stage deals.
3. Increased Time for Fundraising: The time taken from seed to Series A funding in Latin America has increased, now averaging 29 months. This indicates a more challenging fundraising environment for startups in their early stages.
4. Decline in Private Market Valuations: The median equity deal valuation in the Latin American private market has decreased significantly, sliding by 56% in 2023 compared to 2022. This reflects a general trend of depressed valuations in the region.
5. M&A Activity and Absence of IPOs or SPACs: The report notes that there were no public market exits (IPOs or SPACs) in the third quarter of 2023, continuing a trend observed in previous quarters. Mergers and acquisitions (M&A) activity remained flat compared to the second quarter, with 79 deals recorded in Q3.
Argentina: Javier Milei, a radical libertarian, has won Argentina's presidential election, promising drastic changes to the country's economy. Milei, who received 55.7% of the vote against the 44.3% of Peronist economy minister Sergio Massa, has pledged to reform Argentina's economy by reducing state spending and dollarizing the economy. His victory signals a significant political shift in Argentina, with his campaign focused on reducing the role of the state and addressing the country's high inflation rate. Despite concerns about his controversial statements, Milei's win has been welcomed by investors, as indicated by the rise in Argentine stocks and bonds following his election.
Uruguay: Uruguayan President Luis Lacalle Pou is advocating for a free trade agreement (FTA) between Uruguay, China, and the Mercosur bloc, aiming to secure market access similar to that enjoyed by other South American countries with existing China FTAs. This proposal, however, faces opposition from other Mercosur members who prioritize an FTA with Europe. Uruguay's push for closer ties with China, a major trade partner, may pressure Paraguay, which has diplomatic ties with Taiwan, to reconsider its stance. An FTA could greatly benefit Uruguay, particularly in reducing tariffs on its beef exports to China, potentially saving $150 million in tariffs.
Ecuador: Daniel Noboa, a 35-year-old business heir and millionaire, will be inaugurated as Ecuador's president, tasked with addressing economic challenges and escalating violence linked to drug trafficking. Winning the runoff vote on promises of restoring security and job creation, Noboa faces a tough 17-month term, completing the period of outgoing President Guillermo Lasso. His plans include economic and security reforms, balancing foreign debt obligations with domestic needs, and forming a legislative coalition to support his agenda.
What goes through an investor's mind when reviewing a startup pitch deck? 🤔 Join us alongside Andreas Calabrese, General Partner at Tampa Bay Ventures, & Robin Butler Sturgeon Capital as they share their insights and feedback on a few Latin American pitch decks.
📺 Watch the YouTube video here.
Startups included:
Kigüi: allows users to purchase products close to their expiration date at a discounted price, incentivizing the sale of such items and generating cost savings for consumers while reducing food waste.
Lizit: platform designed to streamline the management of rental assets, offering a comprehensive booking interface for both in-store and online reservations. Lizit's system enhances inventory management with robust data visualization tools and integrates seamlessly with e-commerce platforms at checkout.
GetGloby: An AI-powered platform that instantly translates Ads Campaigns into 100+ languages with high-performing results thanks to JAGA, our proprietary translation technology, which is capable of understanding the nuances of every market to adapt the original message.
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