Human Resources Industry: Latin America’s Top 19 Investors According To Sum of Seed Funding Rounds

Intro

The Human Resources Industry is focused on coming up with creative ways to manage human resources in a way that will result in organizational growth. Projects in the industry will benefit both the employer and the employee and can range in focus from managing employee life cycle to administering employee benefits to recruiting to skill assessment and much more. Given the rapidly changing nature of the workforce, it is perhaps not surprising that the industry continues to grow. As employers look for new and creative ways to manage their employees, investors will be on the lookout for new startups to break out in the industry.

The following article and chart outline the top 19 investors in Latin America, including VC funds and corporate investors, that have invested and are currently investing in the Human Resources industry. Specifically, the given funds have invested in projects in the Seed stage over the past 5 years. The money raised in these funding rounds in Latin America amounts to $55.5M, accounting for 1.7% of the total amount of money raised in the Human Resources Industry in Seed rounds over the last 5 years.

Human Resources Industry: Latin America’s Top 19 Investors According To Sum of Seed Funding Rounds
data provided by Unicorn Nest

Key takeaways

• Funds Geography – Mexico, Brazil, and Chile are the leading countries in the sample, each hosting 6 VCs. The most common city of Mexico City, which is home to 4 funds. Also notable are funds from Sao Paulo, Santiago, and Lima. VCs in the sample tend to invest in startups from The United States and Mexico, but they are also willing to invest in startups from Brazil and Chile. It is worth noting that the majority of the funds tend to invest in startups from the country of their establishment.
• Industry Focus – The funds’ most common field of investment is Finance, however, they are also willing to invest in the Gamification, Enterprise Software, and EdTech industries.
• Important Years – The oldest fund in the sample was founded in 2004 and the newest in 2019. The most amount of funds was founded in 2016. When it comes to deals, VCs in the sample made the most deals in the period from 2012 to 2020. Also notable is the fact that, for some funds, 2019 was the year with the most amount of deals.
• Investments – VCs typically take part in 2 funding rounds per year and sometimes in 2-6. The number of funding rounds for VCs in the sample ranges from 5 to 863, with the average falling at 101.0 and the median dipping below it at 54.0. The most common amount of funding rounds in the sample sits even lower at 18. When it comes to lead investments, the amount for funds in the sample ranges from 0 to 76. The average falls at 13.5 and the median at 8.0, with the most common amount being 0. The index of difference in percentage points of lead investments from the average can help identify how likely the given VCs are to act as lead investors. For this sample, the value ranges from -25.56 to 29.0. The average for the value falls at -7.45 and the median at 16.04, with the most common value being even higher at 29.0. This indicates that these funds will act as lead investors more often than other funds.
• Typical Rounds – VCs will typically participate in rounds with 3-4 investors and will participate less often in rounds with 2-3 investors. Funds in the sample have an average round size of less than 100 thousand and 100 thousand – 1 million. The funds’ average multiplier for portfolio companies at the last known valuation ranges from 0.0 at the minimum and 2.06 at the maximum. The average value for this multiplier falls at 0.46 and the median is lower at 0.31. The most common multiplier value is 0.0.