Telefónica is expanding its interactions with startups in Brazil through a newly signed agreement with Endeavor, a project accelerator present in more than 40 countries.

The agreement builds on Telefônica Brasil's open innovation strategy, that is, the development of solutions with and through partnerships, which began in 2012 when Telefónica’s hub Wayra began operating in the country. 

With 30mn reais (US$6.1mn) allocated to 87 Brazilian startups, Wayra Brasil, which is mostly focused on seed investments, accounts for 10% of all the startups in which Telefónica has invested globally, according to the telco.

Its current portfolio comprises 25 startups with a combined market value of over 2.3bn reais, Telefônica Brasil said. Last year, the telco also launched Vivo Ventures, its corporate venture capital (CVC) unit, with 320mn reais to invest in Brazilian “growth” startups (series A or B stages) in education, energy, health, financial services, smart home, marketplace and entertainment.

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Venture capital (VC) funds such as Telefônica’s invested 1.9bn reais in 62 rounds in Brazil during 3Q23, according to data from Brazil's private equity and venture capital association Abvcap in partnership with TTR Data.

That value was 19% higher than the 1.6bn reais invested in 2Q23, although the number of deals was 16% lower. Compared to the third quarter of 2022, the amount invested fell by 29.6% and the number of operations was down 66%.

Specifically in the CVC segment, when companies invest in startups that have synergy with their business, the value of VC operations was the same in both 2Q23 and 3Q23 at 800mn reais, while the number of investment transactions deals declined 11% to 24 from 27, according to the report.

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Cemex Ventures, the CVC and open innovation arm of Mexican cement giant Cemex, invested an undisclosed sum in French startup Vizcab.

The startup’s digital platform enables different developers and architecture, engineering & construction (AEC) stakeholders to assess and work towards reducing CO2 emissions across the construction value chain.

Last year, Cemex Ventures made an investment in Carbon Upcycling Technologies, a Canadian startup that develops carbon management technologies for the cement industry.

Source: Business News Americas / BN Americas - Chile