Shinkansen-Chilean-Startup_Seed Round
Shinkansen, the Chilean fintech startup, has closed a seed investment round of US$3 million led by ALLVP, a Mexican venture capital firm. The investment aims to support Shinkansen’s expansion into Mexico, Peru, and other parts of Latin America. Salkantay, Chileventures, and Pedro Pineda, co-founder of Fintual and acting as a Sequoia Scout, also participated in the round.
Named after Japan’s high-speed rail network, Shinkansen aims to provide a solution for fast money transfer and transactions in the banking and fintech sectors. The company offers a unique and simple API integration that facilitates money movement in the fragmented Latin American market, avoiding the complications of country-specific integrations.
Shinkansen utilizes Artificial Intelligence to automate operations and integrate its APIs with banks in Chile, Colombia, Mexico, and soon in Peru. Additionally, its business model is “regulator-friendly” as it does not handle the flow of money directly, ensuring security and traceability in every transaction.
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Among Shinkansen’s early clients are fintech companies like Xepelin, Buk, and Buda, as well as stockbrokers, insurance companies, and retail chains.
The technological focus and technical prowess of Shinkansen in utilizing AI have been highlighted by investors, who see great potential in this new generation of companies that prioritize AI from the start. ALLVP has successfully invested in Chilean teams in the past and sees promising similarities with the Shinkansen team, driving their support for its growth in the region, in line with their obsession with user experience and regulatory compliance.
How does it impact Latin American startups?
- The US$3 million investment in Shinkansen highlights investors’ confidence and interest in Latin American startups.
- Shinkansen’s expansion in Latin America provides collaboration and growth opportunities for other startups in the region by facilitating financial service integration and improving efficiency in the fintech sector.
- The implementation of technologies like AI and API-based solutions by Shinkansen can inspire other Latin American startups to adopt innovative and technological approaches in their own products and services, fostering competitiveness and advancement in the regional business landscape.
What does it represent for Latin American venture capital?
- The investment led by ALLVP in Shinkansen showcases the potential and investment opportunity in Latin American fintech startups.
- The success and growth of Shinkansen can generate interest and confidence among other venture capital firms to support and finance technological startups in Latin America, strengthening the investment ecosystem in the region.
- The expansion and development of Shinkansen in different Latin American countries can drive collaboration among regional venture capital firms, creating synergies and joint investment opportunities in startups with high growth potential.
For detailed information, visit: Forbes
