Valor Capital has $300 million invested in 37 Brazilian companies and US firms looking to grow in the nation.
Thursday 20, June 2019
(Bloomberg) --SoftBank Group has partnered with a venture capital firm to find new investments in Latin America.
The Japanese technology giant plans to invest in the region alongside Valor Capital Group, last week SoftBank funded gym-membership start-up Gympass, a Valor-backed firm.
Scott Sobel, Managing Partner and Co-founder at Valor Capital, said, “Our main goal is to create value together and impact by investing in the best-in-class entrepreneurs and companies in Brazil and Latin America, we will also be helping SoftBank-backed companies that are outside Brazil enter the Brazilian markets.”
Among its better-known bets are payments firm StoneCo, which went public last year, and, Cargo Transportes an Uber-like offering for truckers.
Other portfolio companies include location data company In Loco, personal finance firm Guiabolso Financias Pessoais and education helper Passei Direto.
In March, SoftBank launched a $5 billion technology fund focused on Latin America, headed by Chief Operating Officer Marcelo Claure.
Valor Capital was founded in 2011 by Sobel and his father Clifford Sobel, a former US ambassador to Brazil, the firm has offices in Sao Paulo, New York and Silicon Valley.
“As our companies mature, SoftBank will be a great kind of follow-on partner to co-invest and direct invest in our companies,” Sobel said.
Global venture investors put $2.22 billion into start-ups in Latin America last year, more than double 2017’s total, according to PitchBook data. This year, investors are on track to top the 2018 number.
“We’ve seen the market in Brazil grow and mature dramatically over the last five years, but we still think there is a lot more room for institutional capital to come in,” added Sobel.