#014: What are the top places for remote working in LatAm?
"Buy, raise - and cut" is the market's mantra this week
Hey technopolists,
With the correction setting in, we’re hitting a rhythm of hot acquisitions activity, strong early-stage fundraises, and new job cullings. Meanwhile, Mexico is in the spotlight for reasons Hot and Not, and we take a deeper look at remote working trends around the region.
What’s hot
🛍️ Buy, buy, buy. As markets correct and valuations come down, acquisition activity amongst the well-funded is soaring in the region. Klar, the Mexican challenger bank that raised $70mn just over one month ago, has acquired SOMOS, a Mexican credit risk analytics platform that enables it to expand its lending products. Bit2Me, the largest crypto exchange in Spain, also bought Peruvian crypto exchange Fluyez. The Spanish juggernaut is now planning an all-out LatAm expansion, with more acquisitions in Chile, Colombia, and Uruguay expected in the near future. (El Financiero)
🤑 Early and often. With early-stage fundraising still strong, this week’s highlights include Educbank, a Brazilian fintech for schools, which bagged $36mn in new funding; Combate a Fraude (CAF), a Brazilian fraudtech startup, whcih closed $14mn in a Series A; and Mexican fintech Arrenda which closed a $26.5mn pre-seed round of debt and equity. (Bloomberg Linea)
☁️ Happy clouds. Google has announced it’s launched Google Cloud in Mexico. Cloud regions, which currently exist in Santiago de Chile and São Paulo, will enable the public sector to use Google Cloud infrastructure for data storage and sharing. The Cloud push is a new addition to Google’s LatAm initiative and follows their $1.2bn investment announcement in June at the Summit of the Americas. (TechCrunch)
What’s not
👋🏼 Exchanging farewells. The Europe-based cryptocurrency exchange Blockchain.com is shutting down its Argentinian platform, SeSocio, only eight months after acquiring it. Last December, Blockchain.com billed itself as the “largest crypto company in Latin America” after purchasing the Argentinian outfit, and now is laying off at least 25% of staff as it turns off access for users. Neither SeSocio nor Blockchain.com have given any concrete reasons why the platform is being shutdown; analysts speculate that the crypto winter has impacted SeSocio’s viability, while others guess that it may be a ploy to force SeSocio users onto Blockchain.com’s other wallets. (Bloomberg Linea)
🏦 Local exits. LatAm tech unicorns will eventually line up to IPO, but there’s little chance that will take place in local exchanges. The head of the Bolsa Mexicana de Valores recently admitted “it would have been a disaster if one of the Mexican unicorns had listed here… If I were a unicorn (founder) … I would also go (to the U.S).” He suggested that there’s little to be done about the fact that tech companies simply get way, way higher valuations on the Nasdaq than they do on home turf. (Reuters)
Stat of the week
What are the top places for remote working in LatAm?
Chile tops the list, having the strongest security, socioeconomic attractiveness, comfort, and Covid-19 response. The Chileans are followed in tight succession by Mexico, Brazil, and Argentina, while Ecuador lags the bunch in last place.
Smart links
Chart: How LatAm tech valuations compare to publicly listed juggernauts
Netflix surpasses $1bn revenue in LatAm, the top performing region in Q2
Itaú targets tech customers in Uruguay for new credit products
LatAm leaders forecast that tech salaries will continue to increase
Localised Mexican delivery startups aim for resilience as others fold
Why some LatAm workers still choose crypto payments
Brazilian giants iFood and XP fundraise to train youth tech talent
Crypto billionaire owner of FTX sees potential for LatAm
How Colombia’s crypto regulation might look
Marcelo Claure readies next move after leaving SoftBank
The “Great Investment Recalibration” has landed in LatAm
Mexican scam loan apps that edit your face onto X-rated photos and send them to your family
Mexico gives Tesla a dedicated lane at the border to speed up crossing into the US
Guide: Everything you need to know about Colombia’s startup scene
Recap: Panama City Blockchain Summit
Chart: How does LatAm healthcare compare to Europe & North America?
Latin American politicians court social-media stars, often ineptly