Venture Capital Firm Kaszek Ventures Raises $1B To Invest In Latin American Tech Based Startups: Bloomberg

Author: Anusuya Lahiri | June 18, 2021 03:40pm

• Venture capitalist Hernan Kazah explores options to invest the $1 billion raised by his firm Kaszek Ventures to tap the pandemic induced demand surge for the tech companies, Bloomberg reports.
• The firm opted for Latin America’s most prominent venture capital round after identifying multiple investment opportunities following the pandemic.
• Initially, the companies had to adjust. But the firm noted growing demand after one and a half months leading to multiple investment ideas.
• Last year, investors invested over $4 billion into the hardest pandemic hit Latin American startups for a second consecutive year. The Q1 investments are estimated to cross $2 billion.
• Kaszek aims to invest $475 million in early-stage startups. It plans to incur the remaining $525 million for a fund catering to its portfolio. The funds were several times oversubscribed, with global demand including strong interest from Asian institutions and Latin American investors.
• The investors included Wesleyan University and Sequoia Heritage.
• The firm’s track record of picking winners, with at least nine unicorns in its portfolio, could partially explain the rising demand. It includes investments in Brazilian fintech Nubank valued at $30 billion after receiving an investment from Berkshire Hathaway, Mexican used car platform Kavak and real estate firm Quinto Andar.
• Kaszek aims to invest in technology-dominated companies, being bullish on fintech, e-commerce, and education companies.
•  It will also focus on Brazil, Mexico, and Colombia.
• Kazah expects multiple companies from Kaszek’s portfolio to go public in the future.

Posted In: ILF