Brazil's Laqus Raises R$10 Million in Venture Debt

Published about 1 month ago

Brazilian fintech firm, Laqus, which specializes in asset storage of commercial notes, receivables, and debentures, has successfully raised R$10 million through a venture debt operation. This type of operation is common in the United States and is gradually gaining traction in Brazil.

Laqus’ Investment Plan

The significant funding will be used to boost the fintech company’s technology and sales. This comes at a time when such businesses are predicted to see increased demand due to new rules from the Securities and Exchange Commission (CVM). One of these new regulations mandates the deposit of commercial notes acquired by receivables funds, a previously optional requirement. To date, only B3 and Laqus have been authorized by the CVM to operate this type of asset deposit service.

Rodrigo Amato, president and founder of Laqus, has indicated that the company will now seek a larger investment through a series B round. This could take place by the end of the first half of 2024.

Details of the Venture Debt Operation

The funding operation was facilitated by Namari Capital, a venture debt fund that provides undiluted capital to start-ups. Unlike a traditional funding round where new investors gain a stake in the company, this type of fundraising does not dilute the founders’ stake in the company. Venture debt has been a successful fundraising model in the United States for about 40 years, aiding the rise of tech giants like Airbnb, Facebook, Spotify, and Uber.

Company Performance and Expectations

As of August, Laqus had over a thousand private issues in its portfolio, amounting to more than R$10 billion. By the end of 2023, the company aims to have deposited R$13 billion in commercial notes alone, excluding other assets. Several notable companies, including Natura, Ecoagro, and Zamp (Burger King), have utilized Laqus’ services.