Latinos are a very innovative and entrepreneurial demographic, and the data proves it. In the U.S., Latinos account for nearly one-fourth of all new businesses, and abroad Latino-founded companies are some of the most successful in the world.
In terms of tech, Latinos have been influential in developing new technologies and platforms to solve a wide range of problems and have raised millions of dollars in funding rounds. Funding for LatAm and Latino-founded companies hit an all-time high in 2021 when tech companies raised $19.5 billion. Today, despite the current economic climate, LatAm and Latino-founded companies are still raising millions of dollars for their companies.
Funding rounds refer to the period of time when tech founders pitch their companies to investors and raise capital. Often, the letters "A, B, C, D and E" are used to describe the round; they indicate how advanced the company is. A new company will raise capital in a Series A round, while more mature companies will raise at a Series C round or later.
These are the largest funding rounds closed by Latin American and Latino-founded companies.
Rappi - $1 billion
Rappi is a Colombia-based on-demand delivery platform that operates similarly to Uber Eats and Grubhub in the United States. In 2019, Rappi raised $1 billion in a funding round that included participation from SoftBank. According to the company's website, its services have grown to provide delivery coverage in most of Latin America.
Nubank - $750 Million
Nubank is a Brazilian neobank that offers digital banking, loans, insurance and credit cards. In June 2021, the company raised $750 million. Berkshire Hathaway Inc., the holding company owned by Warren Buffett, was the largest investor in the round and contributed $500 million of the $750 million raised. The capital raised helped the company become the third-largest bank in Brazil and now has over 2,000 branches, according to Reuters.
Kavak - $700 Million
Based in Mexico City, Kavak is a tech startup that operates a pre-owned vehicle marketplace similar to Carvana. In September 2020, Kavak raised $700 million and doubled its valuation to $8.7 billion. General Catalyst, a venture capital (VC) firm based in Massachusetts, led the company's Series E round. With the capital, the company planned on expanding to other parts of Latin America, according to Tech Crunch.
The Honest Company - $503 Million
Co-founded by Mexican-American actress and businesswoman Jessica Alba, The Honest Company is an online retailer that sells eco-friendly products. According to Crunchbase, the company raised $503 million before going public in 2021.
Nuveshop - $500 Million
Nuveshop is a LatAm e-commerce company based in Brazil that rivals Shopify. In 2021, the company raised $500 million in a Series E round co-led by Insight Partners and Tiger Global Management. According to LABS, a Latin American business publication, the company used its new cash to develop products for its 90,000-plus users.
Kavak - $485 Million
Despite raising the third-largest funding round for a Latino-founded company, Kavak has been so successful in raising capital that it also secured the sixth-largest round as well. In April 2021, the digital car marketplace raised $485 million in a Series D round led by D1 Capital Partners. Prior to this round, Kavak hit a unicorn valuation of $1 billion.
EBANX - $430 Million
EBANX is a Brazilian commerce platform, and in 2021, the tech company secured a $430 million round from Advent International, a private equity firm. With its various products, EBANX has helped companies like Amazon, Spotify and Uber conduct business in Latin America. According to a press release, the investment helped the company expand across Latin America.
Brex - $425 Million
In April 2021, Brex is a fintech company headquartered in San Francisco and founded by Brazilian founders Pedro Franceschi and Henrique Dubugras, raised $425 million in a Series D round led by Tiger Global. The company was founded in 2017 and provides credit solutions to small and medium-sized tech businesses.
Ualá - $350 Million
Based in Argentina, Ualá is a personal finance app. In 2021, the company raised $350 million in a Series D round. Ualá offers many products, including loans, money transfers and investment platforms. According to Tech Crunch, 22 percent of all Argentines between the ages of 18 and 25 use Ualá.
Outreach - $200 Million
Co-founded by Manuel Medina, Outreach develops software solutions that help sales teams meet their objectives. In 2021, the Seattle-based company raised $200 million in a round co-led by Premji Invest and STEADFAST Capital Ventures. According to the company, the new capital would be used to grow its own sales and marketing teams to meet the growing demand for its products.
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