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Investments in Brazilian startups total US$ 8.85 billion in 2021, says study

The total amount invested in startups between January and November 2021 reached US$ 8.85 billion, according to a survey by the Distrito platform. The month of November had the biggest investment the second half, with a value of US$ 809.9 million.

According to the published report, 55 investment rounds were carried out in November, totaling 677 in the year. The volume invested is almost three times greater than that of 2020, which totaled US$ 3.65 billion.

In November, the fintechs, startups operating in the finance area, had the largest number of investments, mergers and acquisitions, with US$ 311 million. They are followed by retailtechs ($268 million), which develop technologies for the retail area.

Also in the five types of startups with the most investments, there are business and project management companies (US$ 125 million), foodtechs, in the food area (US$ 52 million), and healthtechs, in the health area (US$ 31, 3 millions).

The month also had a new unicorn Brazilian, the cloudwalk. She held a fundraising round and raised $150 million, valued at over $1 billion, and with that won the title.

For Gustavo Gierun, co-founder of Distrito, the numbers show the market’s confidence in the startup ecosystem. He also points out an optimism with the market, since most of the investment rounds were in the initial stages of the business.

Compared to the same month in 2020, there were nine fewer mergers and acquisitions, 16 against 25. However, the total number of transactions in the year is already 37% higher.

The survey also pointed to a three times greater volume of investments compared to 2020 with the so-called Corporate Venture Capital, a type of investment made by companies in startups to develop entrepreneurial initiatives.

The type of startup that most benefited from this investment was fintechs. According to the District, this may represent an interest in opportunities with the expansion of the Open Banking and regulatory changes in retail.

Errata: Initially, the report stated that investments in Brazilian startups totaled US$ 8.85 million in 2021. The correct one is US$ 8.85 billion. The information has been corrected.

Reference: CNN Brasil

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