Latin America’s most prominent venture capital firm, Kaszek Ventures, has been a cornerstone in the region’s business ecosystem. With a recent raise of USD $1 billion earlier this year, the firm is strategically positioned to capitalize on emerging market opportunities.
Kaszek has demonstrated impressive agility in the tech startup market. After making only two investments in 2022, they invested in seven companies by September. One of their most notable investments was USD $13 million in the Colombian fintech, Cobre.
Global investment in startups has seen a drastic drop. In Latin America, investments plummeted to USD $1.700 million in the first half of 2023, a massive 75% decline compared to the same period in 2021, according to data confirmed by Lavca and published by Statista.
Despite the challenging landscape, Kaszek, founded by Kazah and Nicolás Szekasy (former executives of MercadoLibre Inc.), managed to raise USD $540 million for early-stage investments and USD $435 million for late-stage companies. They have backed over 120 companies, with Nubank, the Brazilian fintech, being among the most notable.
Looking ahead, Argentinian-born Kazah Szekasy anticipates all funds to be deployed by the end of this year or the beginning of 2024. It’s worth noting that Kazah is no newcomer to the business world. A Stanford graduate, he co-founded MercadoLibre and held significant roles before founding Kaszek.
Kazah pointed out that, given the capital funding shortage, many startups are turning to high-interest loans. Although Kaszek does not provide risk debt, they see it as a supplementary capital source. At a recent tech event in São Paulo, he expressed interest in climate tech-focused startups and artificial intelligence.
As 2024 nears, Kaszek anticipates an acceleration in its operations and examines between six and seven promising deals. Despite the current gap compared to 2021, Kazah remains optimistic, believing there could be a rebound within the region in the coming months.