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

Anusuya Lahiri
·1 min read

  • 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.

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