Contxto – Brazilian’s interest in investing is growing, and venture capital (VC) funds have taken notice.
Yesterday (29), investment fintech Magnetis announced it raised US$11 million for its Series B. Redpoint eventures and Vostok Emerging Finance were the round’s ringleaders. As a result, plenty of growth, tech development, and new projects—including a brokerage service—are coming to Brazil.
Magnetis told Contxto it expects this brokerage service to be rolled out gradually for its users and then be completely available to new clients by October’s end.
Why it’s a big deal: Recent VC-related events in Brazil—including this one—showcase that its population is evolving and acquiring a taste for more advanced types of fintech products and services.
This is simultaneously leading to a more diverse market of tech solutions which will further strengthen the country’s startup scene.
Investments are in in Brazil
Magnetis’ equity capital round comes at a favorable time for investment-related startups in Brazil.
A study by the Brazilian Stock Exchange (B3) showed that the number of individual investors in the stock market rose 41.8 percent last April in comparison to the same period in 2019. Surprisingly, many of these new participants were actually young people.
“Today, the Brazilian market is more sophisticated, with a sharp drop in reliance on [a] fixed income and a rise in more financial assets, including funds, shares, commodities and fixed-income securities,” says Anderson Thees, Managing Partner at Redpoint eventures.
“Defining a personal investment portfolio is a science, not a game, or lottery,” warns the Executive.
Factor in that each person has a different level of aversion to risk as well as personal goals. All of a sudden investing doesn’t seem so inclusive.
What can someone who isn’t a finance whiz do?
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Send in the (fintech) calvary
With Magnetis, user portfolios are personalized and the startup uses artificial intelligence (AI) tech to handle certain variables.
“Magnetis’ team of AI experts has developed algorithms that analyze more than 20,000 investment assets and its digital wealth management platform automatically assembles the best investment portfolio based on clients’ needs and goals,” said the startup in written correspondence.
For the moment, the three-year-old startup has over R$430 million (~US$83.1 million) under management. Nonetheless, it expects to hold R$1 billion (~US$193.4 million) within the next twelve months.
Clearly VC investing in investment startups is attractive right now.
In June, XP Investimentos acquired fintech Fliper because of how it offers a user-friendly way to manage investment portfolios. Earlier this month, Porto Alegre-based Warren closed its Series B for US$22.5 million through QED Investors.
Young and old, Gordon Geckos and Average Joes, people in this Latam country want their money to work for them (and not the other way around).
Related articles: Tech and startups from Brazil!
-ML
