FinTech Collective raises $200 million for startups in Latin America

FinTech Collective, a venture capital firm, reported that lRaising $200 million for a new fund to support fintech startups and asset managementand insurance and the automation or digitization of small and medium businesses, especially in Latin America.

Currently, FinTech Collective has invested in more than 50 companies, including Anyfin (Stockholm), Axoni (NYC), Flutterwave (Africa), IMMO Capital (London), Minu (Latin America), MoneyLion (NYC), NYDIG (NYC), Ocrolus (New York)Fistwell (New York) and Wella (Stockholm/Los Angeles). Departures include Quovo (obtained by Plaid) and others.

“We have basically made eight investments in the past three years, Of which we have five in Mexico, which is the second country in which we have the most investment after the United StatesCarlos Alonso, FinTech Cluster Leader in Latin America, stated exclusively to Forbes Mexico.

In addition, he noted that the investment fund led the Series A of Minu, being the second largest large-scale round in Latin America after Colombian fintech Minka in 2019.

Recognizing that regulatory environments have advanced especially in Mexico with the Fintech law introduced in 2018, as well as the open banking legislation promoted by Brazil, They are still markets where a large part of the population has been excluded from the financial system.

“Latin America is a very urban area and when we talk about the business models that we invest in, it is clear that the crowds of people help. It also has the level of connectivity that has grown in recent years as mobile devices have become cheaper and It’s something that facilitates the kind of investments we make. We believe regulatory environments have improvedAdded Alonso.

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Mexico recorded the emergence of three unicorns: Kavak, Bitso and Clip last year, even with this, the leading Latin American investment firm FinTech Collective highlighted that among the areas of opportunity in the country, The amount of technical level depending on talent availability is still relatively low.

“For all companies in the portfolio, the main impediment to growth is hiring and finding needed talent because there is relatively little talk, but they will improve. This is the difference with the US and Europe, where Regulatory frameworks and systems are clearly in the pipeline, and there is more talent and capital available“.

With a $200 million fund, FinTech Collective will seek to enhance FinTech infrastructure in the Latin American region, promoting accounting and asset management software, as well as automating SMEs.

“More than half of Mexico’s GDP is made up of small and medium businesses and ultimately there is a clear need to help them digitize and sell online. When you think about the boost that Covid-19 has given these small and medium businesses, they cannot be left behind Alonso concluded that this type of investment looks very interesting to us.

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