Investment in Peruvian startups grows rapidly

In recent years, the so-called digital business initiatives, or startups, that develop innovative ideas have become an appealing investment alternative to the options offered by traditional sectors.

In the case of Peru, the choice to invest in startups is showing significant growth, so much so that in the first quarter of 2019 investment in this type of venture amounted to US$ 6.6 million, representing an increase of 295 % compared to the same period in 2018, according to the report prepared by the Peruvian Seed and Venture Capital Association (Pecap).

The Pecap report also identified that eight startups managed to raise capital for 12 deals, increasing by 140 % compared to the achievements of 2018.

Highlights

As for the startups that had the greatest impact on their deals in the first quarter of 2019, one that stands out in a leading position is Crehana, a platform offering online courses in various subjects that closed a Series A round worth US$ 4.5 million with the participation of Acumen Latam Capital Partners, Mountain Nazca and Dila Capital to consolidate its operations abroad.

It is followed by Keynua, which participated in Y Combinator's acceleration program, securing investment from Nilo Ventures and other (undisclosed) investors. This startup is an electronic signature provider with identity verification to identify people and validate their transactions.

Reason for growth

According to the president of Pecap, Alain Elías, the increase is due to the fact that Peruvian startups are accessing foreign investment rounds to finance their international growth. In addition, Elías added that "there is an opportunity to consolidate efforts in the public and private sector to provide a wider supply of venture capital for startups seeking investment rounds above US$ 1 million".

The Pecap report also highlights the inclusion of historical venture capital information since 2011. The participation of Emprende UP, which has provided non-refundable resources to 61 initiatives and facilitated 15 investor deals through its angel investment network, particularly stands out.

Startups with potential

As reported by Incubadora PQS, Peru has a number of startups showing high potential for national and international growth, as they are already selling. This is due to the fact that they represent an exciting opportunity due to their business model and the commitment of the entrepreneurial team that sets out to achieve it.

The five that stand out the most are: Carcool, an application in which drivers publish the route they usually use so that others can get to know it, thus enabling them to save time when they need to mobilize. Fitness Pass, online membership that enables the user to access classes in the best fitness centers. Helpers, a platform with certified professionals in home services. Nocturnos.pe, a gastronomy app that offers production and delivery of the product. Qostapp, thanks to its software, the app captures the service level per restaurant, including waiters and food quality, using this to improve customer experience.

Did you know?

• In 2016, 5.6 million dollars were invested in Peruvian startups, in 2017 the figure was 7.2 million, and by the end of 2018 investment reached 9.1 million dollars.
• Facebook, Amazon and Google are clear examples of businesses that emerged as startups.
• The Peruvian Seed and Venture Capital Association is an entity whose objectives are to increase the number of investments, generate statistical information and promote good investment practices in the Peruvian entrepreneurial ecosystem.

Sources: Gestión/ eleconomistaamerica.pe/ Confiep/ infomercado.pe/ pqs.pe