Kaszek Ventures, one of the pioneering venture capital firms in Latin America, has successfully raised $975 million in two funds. The São Paulo-based firm closed its early-stage fund, Kaszek Ventures VI, with $540 million, and Kaszek Ventures Opportunity-III (KVO-III), a $435 million vehicle for later stage investments.
The global investor interest in Latin American startups has increased in recent years, with the region experiencing a significant spike in VC capital deployment, totaling $15.9 billion in 2021, up from $2 billion in 2018. Although the frenzy has tapered off somewhat, Latin America still hosts numerous unicorns and successful startups. Since 2011, Kaszek has invested in more than 120 companies, collectively raising over $15.5 billion.
Kaszek Ventures plans to invest in 20 to 30 early-stage companies, ranging from seed to Series B, with check sizes between $500,000 to $25 million. KVO-III will mostly provide later-stage capital to Kaszek’s portfolio companies but will also explore primary and secondary opportunities outside the firm’s early-stage portfolios. The Opportunity Fund investments will be more concentrated, with the firm aiming to back 10 to 15 companies, with check sizes ranging from $10 million to $50 million.
According to Hernán Kazah, Kaszek’s co-founder and managing partner, the firm seeks out exceptional founding teams whose business plan leverages technology for a competitive advantage. The portfolio includes companies from a range of industries, such as fintech, enterprise/SaaS, proptech, insuretech, health tech, edtech, e-commerce, food tech, climate tech, biotech, and blockchain. Notable portfolio companies include Nubank, QuintoAndar, Kavak, Creditas, NuvemShop, Bitso, Gympass, Notco, MadeiraMadeira, Loggi, Konfio, Technisys, Kushki, and Cora.
Kaszek Ventures has been most active in Brazil and Mexico and has also invested in teams based in Colombia, Chile, Argentina, Ecuador, Peru, and Uruguay. MercadoLibre co-founder Kazah and the company’s ex-CFO, Szekasy, founded Kaszek 12 years ago. The firm’s name is derived from a combination of their two last names, Ka-Szek. Nicolas Berman, Santiago Fossatti, Andy Young, Mariana Donangelo, and Angie Udry round out the team. Nubank, which the firm first invested in during the pre-seed round, is Kaszek’s most notable exit. The digital bank went public on the NYSE in December 2021.
Kaszek Ventures, a venture firm focused on Latin America, has closed two new funds, raising a total of $975 million. The early-stage fund, Kaszek Ventures VI, raised $540 million, while the later-stage investment vehicle, Kaszek Ventures Opportunity-III (KVO-III), raised $435 million.
The firm plans to invest in 20 to 30 companies out of its early-stage fund, with check sizes ranging from $500,000 to $25 million, while its opportunity fund investments will be more concentrated, with the firm aiming to back 10 to 15 companies with check sizes ranging from $10 million to $50 million. The new funds were “oversubscribed,” according to the firm. Since its founding in 2011, Kaszek has backed over 120 companies, including unicorns such as Nubank, QuintoAndar, and Kavak.
The firm’s LP base remains consistent with that of its previous funds, made up of university endowments, philanthropic foundations, technology investors, and entrepreneurs around the world. According to Kaszek, pipeline opportunities for investment in Latin America are robust, despite short- to mid-term pressure faced by the technology sector globally due to recent market adjustments.