Temasek backs $150m venture fund of monashees, Brazil’s biggest VC

Cityscape of Rio de Janeiro, Brazil.

Singapore state investor Temasek Holdings has invested in the $150-million early-stage venture capital fund raised by monashees, the biggest venture capital firm in Brazil, according to an announcement.

Temasek joins Brandywine Trust Group, S-Cubed Capital, CreditEase, IDG, Mike Krieger, Horsley Bridge Partners, the University of Minnesota, and 15 high-net-worth Brazilian families and groups in backing Monashees VIII, which focuses on backing tech startups in Latin America.

In a statement, monashees ((written in lower case) said the new fund will continue to support early-stage investments in high-growth technology startups. The $150-million pool of capital is the largest raised so far by the Sao Paulo-based VC firm.

“With the closing of Fund VIII, monashees will continue to identify and invest in visionary founders who are capitalizing on global trends and using technology to solve important problems and address large market opportunities in LatAm,” the firm said.

Areas of particular focus include transportation and logistics, financial services, and healthcare. monashees said it will look to back outstanding founding teams early on, at the inflection point of product-market fit, as a common theme across specific sectors.

The firm said it has raised more than $430 million across its funds and has invested in over 55 active companies. Its portfolio firms have raised more than $2 billion from investors.

Global players are increasingly recognizing the significant market opportunities present in Latin America, where large urban populations are coming online, mobile internet usage outpaces the United States, and fragmented and inefficient markets are ripe for disruptive innovation.

Among the billion-dollar startups based in the region are 99 and Rappi. SoftBank has also recently invested in Loggi, a Brazilian logistics technology startup.

“With the market opportunity stronger than ever, we are eager to continue supporting bold founders as they build the companies that will drive the future of the region,” said monashees managing partner and co-founder Eric Acher.

Since its inception in 2005, monashees has made 89 investments, 22 of which as lead investor. Its recent investment was on September 27, 2018, when it invested about $5.4 million in BizCapital, an online lending platform for small businesses in Brazil.

Also Read:

Temasek acquires minority stake in Irish drug delivery startup Aerogen

SoftBank Vision Fund invests $100m in e-commerce startup in Brazil