Brazil's startup market is reaching new elevations and the domestic stock market could benefit from the boom.
Brazilian startups raised the most capital in a single
quarter in the first quarter of 2021, when around $ 1.4 billion was invested in
new domestic technologies, according to KPMG data. That record was maintained
until Brazilian startups raised $ 2.7 billion in the second quarter of 2021.
However, the original data is only half of the initial
equation. Brazil has seen notable acquisitions in recent years, including the
purchase of Twilio from Teravoz in January 2020 and Etsy's purchase of Elo7 in
June for over $ 200 million. Earlier this year, Magazine Luiza spent $ 528
million to acquire Kabum, a Brazilian e-commerce player.
However, acquisitions are simply a path to liquidity. IPO is
different. The good news for Brazil and its startup ecosystem is that despite a
historic shortage of public offerings in technology on national exchanges, the
IPO market for Brazilian tech startups may well be preparing to increase in
volume.
GetNinjas, a platform for recruiting local labor for
household needs such as plumbing and painting, went public earlier this year on
the B3 exchange located in São Paulo. And you are not alone.
The data indicates that the IPO market in Brazil is
changing. TechCrunch noted last year that in the decade to 2020, only two of
Brazil's 56 IPOs were tech companies. More recently, the number of listed
technology companies in the country has grown to at least 16, up from four in
2019.
Will the trend of national IPOs continue for Brazilian tech
companies? Or the USA. Will an IPO play an important role for the country's
leading tech startups?
The question is not idle, as São Paulo-based fintech giant
Nubank is heading towards eventual public offering and more capital than ever,
betting on the country's current generation of startups, all of which should be
aiming for the most famous exit route. Brazil is also minting new unicorns:
this year alone, at least four graduates must pass certification.
But even that data is outdated: This morning, Nuvemshop, a Brazilian e-commerce company announced a new $ 500 million round, valued at
over $ 3 billion.
To better understand the number of recently listed Brazilian
tech offerings and what might happen in the future for the country's startups,
the exchange spoke with GetNinjas CEO Eduardo L'Hotelier about their IPO and
Renata. Quintini from venture capital firm Renegade Partners on what's going on
in the country. We'll rely on data as we go. Let's explore Brazil!
What is driving the increase in tech IPOs in Brazil?
The number of public companies, which tend to fall from
historical highs in the Brazilian market is influenced by both industry and
macroeconomic trends. When we look at what drives the supply of new
technologies in Brazil, we want to think about broader macroeconomic factors
and what is happening in technology in particular.
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