At startups Brazilian companies received US$ 2.92 billion in investments over the first half of 2022, a value 44% lower than that recorded in the same period last year. The data are from a survey by the Distrito innovation platform.
In all, there were 327 transactions, a number 21% lower than the 416 in 2021. Last year, startups raised US$ 5.26 billion in the first six months of the year.
According to the District, the result reflects a “context of inflation, high interest rates and a global political crisis that also affected the technology market”.
The fall in investments occurred especially in the second quarter. In June, US$ 343 million were raised in 45 rounds. In the same month in 2021, a record $2.14 billion in investments had been recorded.
“Brazilian startups felt the effects of the macroeconomic scenario. Faced with this, many companies are changing the operation favoring more sustainable boxes at the expense of exponential growth. Entrepreneurs will have to show skill in managing the company and prove that the model is adaptable to different contexts”, says Gustavo Araujo, co-founder of the District.
Despite the drop in investment, the volume destined for startups in early stages grew. In the first half of 2021, there were $151 million in seed rounds and $1.23 billion in early stage rounds. In 2022, they were US$ 282 million and US$ 1.39 billion, respectively.
As a result, the fall in the amount invested was concentrated in startups in the most advanced stage of growth. From January to June 2022, they raised US$1.24 billion, compared to US$3.87 billion in 2021.
Araujo attributes the numbers to a “correction” in the value attributed to companies, the so-called valuation, which tends to affect more mature startups.
“Start-up companies that have a good team and solve relevant pains in the market are now gaining ground”, he evaluates.
Keeping a trend started in 2019, the fintechs – startups focused on the financial market – led the contributions in the semester, with US$ 1.36 billion.
Then, retailtechs – focused on retail – raised US$ 366 million, while HRtechs – in the human resources area – obtained US$ 247 million.
The largest contributions in the period were in the fintechs Neon (US$ 300 million), Creditas (US$ 260 million) and Dock (US$ 110 million).
In addition to investments, Fusions and acquisitions involving startups had a slight decline, from 118 in 2021 to 110 this year, a drop of 7%.
The reason for the result, which the District considers to be positive, is that “the correction in valuations that technology companies are undergoing makes them more accessible to acquisition opportunities”.
In comparison with previous years, the performance of the startup sector is still positive.
In terms of volume invested, the total in the first half of 2022 is 138% higher than in 2020. The amount raised and the number of rounds this year are second only to 2021, considering the historical series started in 2017.
The amounts invested in January and February 2022 are higher than in the same months of 2021, but with the following months having a higher level of funding.
Even so, they remain above the amounts of 2020, with the exception of June, with a funding of US$ 343 million this year compared to US$ 358 million.
Source: CNN Brasil
I am Sophia william, author of World Stock Market. I have a degree in journalism from the University of Missouri and I have worked as a reporter for several news websites. I have a passion for writing and informing people about the latest news and events happening in the world. I strive to be accurate and unbiased in my reporting, and I hope to provide readers with valuable information that they can use to make informed decisions.
