Brazil-based VC Kaszek has raised capital for two new funds: Kaszek Ventures V, worth $475 million, focuses on early-stage funding, while Kaszek Ventures Opportunity II, worth $525 million, targets later-stage investments, per TechCrunch. Both raises were oversubscribed. This marks the fifth fund for the firm; the first, worth $95 million, was raised in 2011. Kaszek has since backed 91 companies, and its portfolio has secured over $10 billion in capital.
Although Kaszek is industry agnostic in its investments, a significant portion of the fund will likely go toward fintechs. The biggest share of its active portfolio of 71 companies operates in fintech (20) and insurtech (6). Some of Kaszek’s notable investments include neobank Nubank, alt lender Creditas, and crypto company Bitso. And given that its existing investments in the segment are doing well—Nubank is the largest neobank globally, with 34 million customers—Kaszek will likely try to replicate this success with further investments in fintechs. Additionally, geographically, Kaszek focuses heavily on Brazil and Mexico—the two countries with the most fintech activity in the region—as well as Colombia.
The latest fund is further testament that LATAM’s fintech industry is maturing—and the recent increase in VC funds in the region is set to drive further growth for the future.