Exclusive: ONEVC Makes First Close On Second Fund Aimed At Latin America

Brazil’s startup scene continues to light up, driven by industries, including fintech, agriculture and B2B marketplaces, and ONEVC is right in the thick of the action.

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The seed-stage venture firm, founded in 2018 with offices in São Paulo and San Francisco, did its first close — $18 million — of its second fund, targeted at up to $40 million, Crunchbase News learned exclusively.

ONEVC’s first fund closed in 2019 at $38 million, and the company made 24 investments. The second fund will be deployed 65 percent into Brazil startups and the remaining 35 percent across Spanish-speaking Latin America.

“The number of second-time founders starting large companies, as well as the number of IPOs in Brazil, is giving liquidity to venture capital firms, which was not possible before,” Bruno Yoshimura, ONEVC partner, said in an interview. “Also, new U.S.-based funds are interested in the region, so we are also now targeting Spanish-speaking investments in Latin America.”

A lot of first-time events are happening at once, Partner Arthur Brennand said. Six years ago, it was just local VC players. Now, the best-in-class talent from all over the world is joining companies or creating their own in the region.

And, big international firms are coming into the region, including Andreessen Horowitz, Index Ventures, Lightspeed Venture Partners and GGV, he added. Although it means more players in the game, Brennand doesn’t see competition, but rather collaboration.

“We are proud to collaborate with most of the funds, and view them as a trusted partner looking at the region,” he said in an interview. “It is unique to be part of the rounds and not competing directly. We’ve been able to build relationships with funds across the U.S. and Europe.”

After successfully deploying its first fund across 24 investments, the second fund attracted capital raised from existing investors as well as portfolio founders, Brennand said. The firm is targeting 18 to 25 companies with the new fund, with half of the capital being held for follow-on funding, according to ONEVC Partner Alexandre Noschese.

ONEVC has already made three investments from the new fund. Company names were not disclosed, but the investments went into a fintech player focused on Brazil’s health care market, a legal/insurance tech startup in Brazil and a live/social commerce company.

The firm is also looking to expand its team this year and is in search of two principals or partners, as well as a “head of people” to join Yoshimura, Brennand, Noschese and venture partner Eduardo Campos.

“It’s all about helping companies with talent,” Yoshimura said. “Brazil is going in the direction of Silicon Valley, and the more capital coming in means it will be easier to bring in more talent. We are bridging Silicon Valley with Brazil and need more expertise from the U.S.”

Illustration: Li-Anne Dias