Latin American VC Backs U.S. Fintech Startup

Investments from U.S. sources into Latin American startups are increasingly common in today’s financial landscape.

However, instances of venture capital firms originating from Latin America investing in companies based in the United States are less frequent.

Flourish Secures $1.5 Million Funding

Berkeley-based fintech company Flourish has successfully completed a $1.5 million funding round. This investment was spearheaded by Canary, a Brazilian venture capital firm.

The startup, established by Pedro Moura and Jessica Eting, provides a solution focused on “engagement and financial wellness” tailored for banks, fintechs, and credit unions. Its core objective is to enhance client engagement and improve retention rates.

Additional participants in this funding round included Xochi Ventures, First Check Ventures, Magma Capital, and GV Angels. Strategic angel investors also contributed, such as Rodrigo Xavier (formerly CEO of Bank of America in Brazil), Beth Stelluto (previously with Schwab), Gustavo Lasala (president and CEO of The People Fund), and Brian Requarth (founder of Viva Real).

Flourish’s Core Features

Flourish currently serves clients across the U.S., Bolivia, and Brazil. The company’s solution is built around three primary modules:

• A rewards system designed to motivate users to save or invest funds.
• An automated micro-savings feature that allows users to establish personalized savings rules, like transferring a set amount to a savings fund based on the outcome of sporting events.
• A financial education module that transforms personal financial data into an interactive learning experience.

Initially, Flourish tested its user-facing features with organizations like CommonWealth and Opportunity Fund within the U.S.

In 2019, a direct-to-consumer version of the Flourish app, known as the Flourish Savings App, was launched as a pilot program for its banking platform. This platform integrates with banks via either an SDK or an API.

The company is also now extending licenses for its engagement technology to banks, retailers, and fintechs throughout the Americas. Flourish has conducted pilot programs or secured licenses with U.S.-based credit unions, Sicoob (Brazil’s largest credit union), and BancoSol in Bolivia.

Revenue Model

Flourish generates revenue through a partnership-based model that prioritizes user activation and sustained engagement.

Founders’ Background

Moura and Eting first connected during their time in the MBA program at the Haas School of Business at UC Berkeley. Moura relocated to the U.S. from Brazil during his teenage years, while Eting has a Filipino father and a mother of Mexican heritage.

The two founders were united by a shared vision: to create a business that empowers individuals to develop sound financial habits and gain a better understanding of their finances.

The current team of 11 members is distributed across the U.S., Mexico, and Brazil. The newly acquired capital will be allocated to expanding the customer base in Latin America, increasing headcount, and enhancing the functionalities of the Flourish platform.

The company’s immediate focus will be on the Brazilian market, with plans for strategic expansion into select countries within the Americas.

“Several factors make Latin America, and Brazil in particular, an appealing market for us at this time,” Moura explained. “The B2B fintech market is still developing, coupled with the implementation of open banking regulations and a growing demand for more responsible financial products, creating a unique opportunity for Flourish in Brazil.”

Early Stage Event Information

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Attendees will gain insights directly from successful founders and VCs regarding business development, fundraising, and portfolio management.

The event covers all critical aspects of company building, including fundraising strategies, talent acquisition, sales techniques, achieving product-market fit, public relations, marketing, and brand development.

Each session incorporates audience participation, allowing for questions and interactive discussions.