Nigerian data analytics company Terragon acquires Asian mobile ad firm Bizense

Nigerian consumer data analytics firm Terragon Group has acquired Asian mobile marketing company Bizense in a cash and stock deal.

Based in Singapore, with operations in India and Indonesia, Bizense specializes in “mobile ad platform[s] for Telco’s, large publishers, and [e-commerce] ad networks” under its proprietary Adatrix platform—according to its website and a release.

The price of the acquisition was not disclosed.

The company lists audience analytics, revenue optimization, and white label SSP services among its client offerings.

Headquartered in Lagos, Terragon’s software services give its clients — primarily telecommunications and financial services companies — data on Africa’s growing consumer markets.

Products allow users to drill down on multiple combinations of behavioral and demographic information and reach consumers through video and SMS  campaigns while connecting to online sales and payments systems.

Terragon clients include local firms, such as Honeywell, and global names including Unilever, DHL, and international agribusiness firm Olam.

The company’s founder and CEO Elo Umeh sees cross-cutting purposes for Terragon services in other markets.

“Most of the problems we seek to solve for our clients in Africa also exist in places like South East Asia and Latin America,” Umeh told TechCrunch.

The Bizense acquisition doesn’t lessen Terragon’s commitment to its home markets, according to Umeh.

“We are…super focused on Africa right now, building out propriety platforms powered by data and artificial intelligence to help Telco’s, SMEs, FMCGsand financial institutions …increase their customer base and drive more transaction volumes,” he said.

Terragon’s CEO would not divulge the acquisition value, saying only that it consisted of  “a combination of cash and stocks, with the actual amount not disclosed.”

In an interview with TechCrunch earlier this year, Umeh confirmed the company was looking into global expansion.

Tarragon already has a team of 100 employees across Nigeria, KenyaGhana and South Africa.

Umeh indicated the company is contemplating further expansion in Asia and the Latin America, where Terragon already has consumer data research and development teams.

With the Bizense acquisition Terragon plans to “build out platforms, tools and machine learning models to help businesses…acquire new customers and get existing customers to do more.”

Bizense founder and CEO Amit Khemchandani will be involved in this process. “We are excited about the next phase of this journey as we innovate for Africa and other emerging markets,” he said.

With the exception of South African media and investment giant Naspers, acquisitions of any kind—intra-continental or international—are a rarity for Sub-Saharan African startups and tech companies.

Terragon’s acquisition in Singapore, and other moves made by several other Nigerian startups this year, could change that. African financial technology companies like Mines and Paga announced their intent to expand in and outside Africa. They would join e-commerce site MallforAfrica, which went global in July in a partnership with DHL.

Mexican venture firm ALL VP has a $73 million first close on its latest fund

Buoyed by international attention from U.S. and Chinese investors and technology companies, new financing keeps flowing into the coffers of Latin American venture capital firms.

One day after the Brazilian-based pan-Latin American announced the close of its $150 million latest fund comes word from our sources that ALL VP, the Mexico City-based, early stage technology investor, has held a first close of $73 million for its latest investment vehicle.

The firm launched its first $6 million investment vehicle in 2012, according to CrunchBase, just as Mexico’s former President Enrique Peña Nieto was coming to power with a pro-business platform. One which emphasized technology development as part of its strategy for encouraging economic growth.

ALL VP founding partner Fernando Lelo de Larrea said he could not speak about ongoing fundraising plans.

And while the broader economy has stumbled somewhat since Nieto took office, high technology businesses in Mexico are surging. In the first half of 2018, 82 Mexican startup companies raised $154 million in funding, according to data from the Latin American Venture Capital Association. It makes the nation the second most active market by number of deals — with a number of those deals occurring in later stage transactions.

In this, Mexico is something of a mirror for technology businesses across Latin America. While Brazilian startup companies have captured 73% of venture investment into Latin America — raising nearly $1.4 billion in financing — Peru, Chile, Colombia and Argentina are all showing significant growth. Indeed, some $188 million was invested into 23 startups in Colombia in the first half of the year. 

Overall, the region pulled in $780 million in financing in the first six months of 2018, besting the total amount of capital raised in all of 2016.

It’s against this backdrop of surging startup growth that funds like ALL VP are raising new cash.

Indeed, at $73 million the first close for the firm’s latest fund more than doubles the size of ALL VP’s capital under management.

ALL VP management team

But limited partners can also point to a burgeoning track record of success for the Mexican firm. ALL VP was one of the early investors in Cornershop — a delivery company acquired by Walmart for $225 million earlier this year. Cornershop had previously raised just $31.5 million and the bulk of that was a $21 million round from the Silicon Valley-based venture capital firm, Accel.

International acquirers are making serious moves in the Latin American market, with Walmart only one example of the types of companies that are shopping for technology startups in the region. The starting gun for Latin American startups stellar year was actually the DiDi acquisition of the ride-hailing company 99 for $1 billion back in January.

That, in turn, is drawing the attention of early stage investors. In fact, it’s venture capital firms from the U.S. and international investors like Naspers (from South Africa) and Chinese technology giants that are fueling the sky-high valuations of some of the region’s most successful startups.

Loggi, a logistics company raised $100 million from SoftBank in October, while the delivery service, Rappi, raked in $200 million in August, in a round led by Andreessen Horowitz and Sequoia Capital.

In a market so frothy, it’s no wonder that investment firms are bulking up and raising increasingly large funds. The risk is that the market could overheat and that, with a lot of capital going to a few marquee names, should those companies fail to deliver, the rising tide of capital that’s come in to the region could just as easily come back out.

 

Monashees raises $150 million for its eighth Brazilian fund

As technology investment and exits continue to rise across Brazil, early stage venture capital firm monashees today announced that it has closed on $150 million for its eighth investment fund.

Commitments came from Temasek, the sovereign wealth fund affiliated with the Singaporean government, China’s financial technology company, CreditEase; Instagram co-founder Mike Krieger, the University of Minnesota endowment; and fund-of-funds investor Horsley Bridge Partners.

S-Cubed Capital, the family office of former Sequoia Capital partner, Mark Stevens, and fifteen high net worth Brazilian families and investment groups also invested in the firm’s latest fund.

As one of the largest venture capital firms in Latin America with over $430 million in capital under management, monashees has been involved in some of the most successful investments to come from the region. Altogether, monashees portfolio companies have gone on to raise roughly $2 billion from global investors after raising money from the Sao Paulo-based venture capital firm.

“We are excited to further advance our partnership with the monashees team,” said Du Chai, Managing Director at Horsley Bridge Partners . “Over the course of our partnership, we have continued to be impressed by monashees’ strong team, platform and their ability to attract the region’s leading entrepreneurs.”

In the past year, investment in Latin American startup companies has exploded.  The ride-hailing service 99 was acquired for $1 billion and Rappi, a delivery service, managed to raise $200 million at a $1 billion valuation. Another delivery service, Loggi, caught the attention of SoftBank, which invested $100 million into the Brazilian company.

Public markets are also rewarding Latin American startups with continued investment and high valuations. Stone Pagamentos, a provider of payment hardware technology, raised $1.1 billion in its public offering on the Nasdaq with an initial market capitalization of $6.6 billion.

“monashees brings a truly unique set of skills to the table, with a disciplined investment strategy, as well as the unmatched local expertise and knowledge that leads the team to identify and invest in the region’s best founders,” said Stuart Mason, Chief Investment Officer at the University of Minnesota . “The recent billion-dollar acquisition of 99 by DiDi is not only a milestone for the local ecosystem, but validation of this sentiment and suggests that there’s no liquidity hurdle for great companies in Latin America. We are excited to partner with monashees as it continues to find and nurture the best opportunities going forward.”

 

Nubank is now worth $4 billion after Tencent’s $180 million investment

Nubank, the Brazilian financial services company, has raised $180 million from the Chinese internet giant, Tencent.

Tencent has long been interested in financial services startups, and with its $90 million direct investment and another $90 million investment in the secondary market, the company now has access to what is arguably the largest digital banking company in the world.

With the $4 billion valuation, it also makes Nubank one of the most highly valued privately held startups in Latin America.

News of the investment was first reported by The Information, which included the $4 billion figure.

For Nubank co-founders David Velez and Cristina Junqueira, the investment from Tencent means the addition of a strategic partner whose financial services products and transaction platform is unmatched by anything in Western Europe or the U.S.

Velez stressed that Nubank, which had raised $150 million in a February financing round led by DST, did not need the additional capital. “We found so much value in partnering with Tencent,” Velez said. “Particularly everything there is to learn about the Chinese financial market.”

Velez hopes to take those lessons and apply them back to the market in Brazil. China is in the forefront of financial services globally because of its technology companies’ ability to offer multi-product platforms. “They have built the playbook of how to use mobile.”

Through the investment, Tencent will gain an understanding of how Nubank has managed to service 5 million credit card holders, and the game plan the company is deploying to develop its own savings accounts and other banking services.

“Over 20 million people have applied for the card,” said Velez. “There are active, engaged, customers that want to get everything from us.”

Junqueira estimates the company will soon be able to serve tens of millions of Brazilians with either a savings account, a checking account or credit.

The opportunity could be even bigger as Brazil’s central bank investigates the possibility of instant payments as well, looking to India’s experiment with demonetization as an example.

Both Junqueira and Velez said the opportunity for financial services startups to achieve significant scale was far higher in emerging markets like Brazil than in developed markets, because the barriers to banking are so much higher.

Financial services, Velez said, has been controlled by massive oligopolies that have erected unfair obstacles to wealth creation for the masses. Nubank and other companies like it are working to change that.

Now the company has the benefit of Tencent’s guidance as it continues to push the envelope.

Base10’s debut fund is the largest-ever for a Black-led VC firm

Adeyemi Ajao (above left), the co-founder and managing director of Base10 Partners, was surprised to hear his firm’s $137 million fund was the largest debut to date for a black-led venture capital firm.

He and his co-founder — managing director TJ Nahigian (above right) — found out from none other than their fund’s own limited partners, who told them they should seek out institutions looking to invest in diverse fund managers.

“Oh man, I was like, ‘yeah, I know I’m black but so what?'” Ajao told TechCrunch. “I can be a little bit naive about these things until they become extremely apparent.”

Ajao is African, European, Latin, and now, having spent a decade in San Francisco, American. Growing up in between Spain and Nigeria, it wasn’t until landing in the Bay Area that he was forced to confront a social dynamic absent in his international upbringing: racial inequality and being black in America.

“The U.S. is pretty different about those things,” he said. “I was surprised when at Stanford I got an invitation to a dinner of the Black Business Student Association. I’m like, ‘why would there be a Black Business Student Association? That’s so weird?’ It took me a while, a good, good while, to be like ok, here there’s actually a really entrenched history of a clash and people being treated differently day-to-day.”

In the business of venture capital, the gap in funding for black founders and other underrepresented entrepreneurs is jarring. There’s not a lot of good data out there to illustrate the gap, but one recent study by digitalundivided showed the median amount of funding raised by black women founders is $0, because most companies founded by black women receive no money.  

Ajao certainly hadn’t thought the color of his skin would impact his fundraising process, and, in retrospect, he doesn’t think it did. Still, he recognizes that pattern recognition and implicit bias continue to be barriers for diverse founders and investors.

Now, he plans to leverage his unique worldview to identify the next wave of unicorns others VCs are missing. Base10 doesn’t have a diversity thesis per say but it plans to invest in global companies fixing problems that affect 99 percent of the world, not the Silicon Valley 1 percent. 

I sat down with Ajao in Base10’s San Francisco office to discuss his background, the firm’s investment focus and the importance of looking beyond the Silicon Valley bubble.

Automation of the real economy

Base10 is writing seed and Series A checks between 500,000 and $5 million. It’s completed 10 investments so far, including in Brazilian mobility startups Grin and Yellow, which closed a $63 million Series A last week.

The firm is looking for entrepreneurs who have spent years in their industries, whether that be agriculture, logistics, waste management, construction, real estate or otherwise, and are trying to solve problems they’ve experienced first-hand.

“We are much more likely to fund someone that actually worked for eight years on a construction site and was like, ‘you know what, I think this could be done better and maybe I can make my life easier with automation,’ rather than a Ph.D. in AI out of the Stanford lab that says ‘I think construction is inefficient and it can be done without people,'” Ajao said. “[We are] kind of flipping the paradigm in that sense.”

The firm has also backed birth control delivery startup The Pill Club, on-demand staffing company Wonolo and Tokensoft, a platform for compliant token sales. 

Beyond the bubble

Ajao and Nahigian have a mix of operational and investing experience.

On the VC side, Nahigian, a Los Angeles native, spent seven years investing via Summit Partners, Accel, then Coatue Management. In 2014, he co-founded Jobr, a mobile job platform that was later acquired by Monster, where he became the VP of product and head of mobile.

Ajao was most recently a VP at Workday where he led the launch of Workday Ventures, a VC fund focused on AI for enterprise software. He joined Workday after the company acquired his startup, Identified, in what was his second successful exit to date. Before that, he co-founded Spanish social media company Tuenti, which Telefonica paid $100 million for in 2010

He also helped incubate and launch Cabify, a Spanish ride-hailing company based in Madrid. The Uber competitor raised $160 million at a $1.4 billion valuation earlier this year.

Ajao was Nahigian’s first investor in Jobr, which was also backed by Tim Draper, Redpoint Ventures, Eniac Ventures, Lowercase Capital and more. The pair stayed in touch, discussed startups and potential deals, ultimately deciding to go into business together. 

They agreed Base10 should support companies solving real problems and that as investors, they needed to be able to see beyond the Silicon Valley bubble.

Do we feel a little bit of a responsibility? Like … ‘hey, you should help Silicon Valley be more aware of global issues.’ Yes,” Ajao said. “I try to spend a lot of time meeting with founders that either look different or are trying to make it here and I try to be super open about my journey and my travels.”

His piece of advice to other VCs is one that countless diverse founders and investors have been shouting at the top of their lungs: Invest in underrepresented founders, it’s just good business.

“If you have the same company and one is run by a female and one is run by a male, and it’s the same stuff, you should probably invest in the female, because that person probably had a harder time getting there,” he said. “It’s actually good business. I believe that.”

“The more open and comfortable we get about talking about these things, the better it is for both parties.”

Tickets are now available for São Paulo’s Startup Battlefield Latin America

We’re very excited to announce that tickets are now available for TechCrunch’s Startup Battlefield Latin America, which will be held at São Paulo’s Tomie Ohtake Institute on November 8, 2018.

Tickets are free and available through a simple application process, which you can find here. We will select applicants on a first come, first served basis for people actively involved in the Latin American startup ecosystem. Our partner in this event, FbStart, will be hosting the Latin America Tech Week Celebration that will include multiple workshops for startups, high-school students, women in tech, universities and more!

We’re also pleased to announce more details on the show itself:

The heart of the day is the Startup Battlefield competition, which will feature 15 top, early stage startups from throughout Latin America. We received over 400 applications, and will make final selections and notify contestants in a few days. Each company will pitch to a panel of judges in one of three preliminary rounds, and five will advance to a final round. The judges, all top VCs and founders, will pick a winner, who will receive a $25,000 check as well as an all-expense paid trip for two to participate in an upcoming TC Disrupt.

In addition to the Battlefield, we have a great speaker line-up. Here are a few highlights:

  • Christina Junqueira and David Vélez, founders of NuBank, the Brazilian fintech company disrupting financial services
  • Hans Tung, Managing Partner at GGV Capital, one of the top venture firms working between the US and China
  • Veronica Allende Serra, founding partner of Brazil’s Innova Capital
  • Sebastian Mejia, Co-founder of Rappi, the Colombian on-demand delivery company rapidly expanding across Latin America
  • David Arana, Co-founder of Konfio, the Mexican online lending platform for small businesses
  • Hernan Kazah, Co-founder and managing partner at Argentina’s Kaszek Ventures
  • Antonia Rojas Eing, partner at Chile’s Manutara Ventures

We’ll announce the speakers and Startup Battlefield judges soon. Apply for a ticket now while they last.

Lending startup Portal Finance nabs $200 million for small business loans in Latin America

Latin American small businesses just got a big boost with a new commitment for a $200 million lending joint venture between the Bogota-based startup Portal Finance and Latin America’s largest financial services institution, BTG Pactual.

For Portal Finance, the deal with BTG caps a meteoric rise, which has seen the company raise $1.5 million at a $60 million valuation and move from a small $5 million lending pilot to a $200 million deal in the span of two years.

A year ago we were four guys in a closet. Now we’re 70 people,” says Diego Caicedo, the company’s chief executive and co-founder. 

The company’s success is a testament to the changing fortunes of many Latin American economies and the role that venture capital is playing. For the last several years Colombia’s economic fortunes have been rising since the successful conclusion of peace talks with the country’s largest rebel group, the Revolutionary Armed Forces of Colombia, brought an end to 50 years of civil war.

Meanwhile, investment firms like Magma Partners, which led the pre-seed and seed rounds for Portal Finance are linking innovative companies in places like Buenos Aires, Bogota, and Lima with Chile’s stable economic base to provide a market where innovative startups can gain traction.

It’s also a sign of the significant demand for small business loans across Latin America. In the aftermath of the 2008 global financial crisis small businesses found their credit lines pulled as banks refused to take on the risks associated with lending to small businesses.

That left businesses with only supply chain financing and factoring as the only alternatives. With interest rates that are typically between 20% and 50% annually. These rates are being charged even though invoices can be used as collateral and default rates hover at around 1% per year.

Portal Finance, and other companies like it, solve the problem by giving banks a better window into their borrowers finances by tackling the problem from three ways. The first is by working with factoring firms who were the lenders of last resort to companies who needed cash for operations and improvement and could not take out loans or raise equity financing. Second, the company has a window into the receivables of small businesses through the large corporate customers they supply. Finally, the company has reached out to the small businesses themselves to collect additional data, giving lenders a complete view of the borrowers’ financing.

That “full-stack” approach to small business financial statements was the vision that Caicedo had for his company from the moment he and his co-founders Felipe Puntarelli and Nicholas Bohorquez, took their first financing — $50,000 from Magma Partners (a Latin American focused venture capital firm).

The opportunity was so great that he was able to convince his eventual Charlie Cliff, a former defense contractor in the aerospace industry, to come down to Bogota without knowing a single word of Spanish to help jumpstart the business as Chief Technology Officer. Cliff, who was connected to Caicedo through Magma Partners’ managing director and co-founder Nathan Lustig, flew down after three phone calls.

Diego Caicedo and Charlie Cliff, the chief executive and chief technical officers for Portal Finance

Caicedo and Cliff first tackled the problem for the factoring firms that would lend money to businesses off of the projected income for accounts receivable. It was the first product that Portal Finance brought to market when it launched in 2016.

By 2017, it expanded its products to include an offering for large corporations to help them manage their payments to small businesses.

With that information in hand, Caicedo reached out to financial services firms to set up a lending operation. BTG Pactual agreed to a pilot in Chile in January, and expanded to the $200 million lending joint venture in July that covers both Chile and Colombia.

Caicedo called the program the largest investment in a fintech startup by a Latin American financial services firm. So far, the company has issued 200 loans in Chile and 500 in Colombia. On the heels of that investment, Caicedo says that the company expects to close an additional $2.5 million in financing soon and will be profitable by the end of November.

Rappi raises $200M as Latin American tech investment reaches new highs

Rappi, the Colombian on-demand delivery startup, has brought in a new round of funding at a valuation north of $1 billion, as first reported by Axios and confirmed to TechCrunch by a source close to the company. DST Global has led the more than $200 million financing, with participation from Andreessen Horowitz and Sequoia — all of which were existing investors in the company.

Rappi kicked off its business delivering beverages and has since expanded into meals, groceries and even tech and medicine. You can, for example, have a pair of AirPods delivered to you using Rappi’s app. The company also has a popular cash withdrawal feature that allows users to pay with credit cards and then receive cash from one of Rappi’s delivery agents.

Rappi charges $1 per delivery. To help keep costs efficient, the company’s fleet of couriers use only motorcycles and bikes.

Simón Borrero, Sebastian Mejia and Felipe Villamarin launched the company in 2015, graduating from Y Combinator the following year. From there, Rappi quickly captured the attention of American venture capitalists. A16z’s initial investment in July 2016 was the Silicon Valley firm’s first investment in Latin America.

The new capital will likely be used to help Rappi compete with Uber Eats, which is active across Latin America.

The round for Rappi is notable for a Latin American company, as is its new unicorn status. Only one other Latin American startup, Nubank, has surpassed a billion-dollar valuation with new venture capital funding so far in 2018. São Paulo-based Nubank makes a no-fee credit card and is also backed by DST.

Investment in Latin American tech continues to reach new highs. In the first quarter of 2018, more than $600 million was invested. That followed a record 2017, which was the first time VCs funneled more than $1 billion into the continent’s tech ecosystem during a 12-month period.

The rise in investment is mostly due to sizable fundings for companies like Rappi and Nubank, as well as Brazil-based 99, which sold to fellow ride-hailing business Didi Chuxing in a deal worth $1 billion earlier this year.

AI training and social network content moderation services bring TaskUs a $250 million windfall

TaskUs, the business process outsourcing service that moderates content, annotates information and handles back office customer support for some of the world’s largest tech companies, has raised $250 million in an investment from funds managed by the New York-based private equity giant, Blackstone Group.

It’s been ten years since TaskUs was founded with a $20,000 investment from its two co-founders, and the new deal, which values the decade-old company at $500 million before the money even comes in, is proof of how much has changed for the service in the years since it was founded.

The Santa Monica-based company, which began as a browser-based virtual assistant company — “You send us a task and we get the task done,” recalled TaskUs chief executive Bryce Maddock — is now one of the main providers in the growing field of content moderation for social networks and content annotation for training the algorithms that power artificial intelligence services around the world.

“What I can tell you is we do content moderation for almost every major social network and it’s the fastest growing part of our business today,” Maddock said.

From a network of offices spanning the globe from Mexico to Taiwan and the Philippines to the U.S., the thirty two year-old co-founders Maddock and Jaspar Weir have created a business that’s largest growth stems from snuffing out the distribution of snuff films; child pornography; inappropriate political content and the trails of human trafficking from the user and advertiser generated content on some of the world’s largest social networks.

(For a glimpse into how horrific that process can be, take a look at this article from Wiredwhich looked at content moderation for the anonymous messaging service, Whisper.)

Maddock estimates that while the vast majority of the business was outsourcing business process services in the company’s early days (whether that was transcribing voice mails to texts for the messaging service PhoneTag, or providing customer service and support for companies like HotelTonight) now about 40% of the business comes from content moderation.

Image courtesy of Getty Images

Indeed, it was the growth in new technology services that attracted Blackstone to the business, according to Amit Dixit, Senior Managing Director at Blackstone.

“The growth in ride sharing, social media, online food delivery, e-commerce and autonomous driving is creating an enormous need for enabling business services,” said Dixit in a statement. “TaskUs has established a leadership position in this domain with its base of marquee customers, unique culture, and relentless focus on customer delivery.”

While the back office business processing services remain the majority of the company’s revenue, Maddock knows that the future belongs to an increasing automation of the company’s core services. That’s why part of the money is going to be invested in a new technology integration and consulting business that advises tech companies on which new automation tools to deploy, along with shoring up the company’s position as perhaps the best employer to work for in the world of content moderation and algorithm training services.

It’s been a long five year journey to get to the place it’s in now, with glowing reviews from employees on Glassdoor and social networks like Facebook, Maddock said. The company pays well above minimum wage in the market it operates in (Maddock estimates at least a 50% premium); and provides a generous package of benefits for what Maddock calls the “frontline” teammates. That includes perks like educational scholarships for one child of employees that have been with the company longer than one year; healthcare plans for the employee and three beneficiaries in the Philippines; and 120 days of maternity leave.

And, as content moderation is becoming more automated, the TaskUs employees are spending less time in the human cesspool that attempts to flood social networks every day.

“Increasingly the work that we’re doing is more nuanced. Does this advertisement have political intent. That type of work is far more engaging and could be seen to be a little bit less taxing,” Maddock said.

But he doesn’t deny that the bulk of the hard work his employees are tasked with is identifying and filtering the excremental trash that people would post online.

“I do think that the work is absolutely necessary. The alternative is that everybody has to look at this stuff. it has to be done in a way thats thoughtful and puts the interests of the people who are on the frontlines at the forefront of that effort,” says Maddock. “There have been multiple people who have been involved in sex trafficking, human trafficking and pedophilia that have been arrested directly because of the work that TaskUs is doing. And the consequence of someone not doing that is a far far worse world.”

Maddock also said that TaskUs now shields its employees from having to perform content moderation for an entire shift. “What we have tried to do universally is that there is a subject matter rotation so that you are not just sitting and doing that work all day.”

And the company’s executive knows how taxing the work can be because he said he does it himself. “I try to spend a day a quarter doing the work of our frontline teammates. I spend half my time in our offices,” Maddock said.

Now, with the new investment, TaskUs is looking to expand into additional markets in the UK, Europe, India, and Latin America, Maddock said.

“So far all we’ve been doing is hiring as fast as we possibly can,” said Maddock. “At some point in the future, there’s going to be a point when companies like ours will see the effects of automation,” he added, but that’s why the company is investing in the consulting business… so it can stay ahead of the trends in automation.

Even with the threat that automation could pose to the company’s business, TaskUs had no shortage of other suitors for the massive growth equity round, according to one person familiar with the company. Indeed, Goldman Sachs and Softbank were among the other bidders for a piece of TaskUs, the source said.

Currently, the company has over 11,000 employees (including 2,000 in the U.S.) and is looking to expand.

“We chose to partner with Blackstone because they have a track record of building category defining businesses. Our goal is to build TaskUs into the world’s number one provider of tech enabled business services.  This partnership will help us dramatically increase our investment in consulting, technology and innovation to support our customer’s efforts to streamline and refine their customer experience,” said Maddock in a statement.

The transaction is expected to close in the fourth quarter of 2018, subject to regulatory approvals and customary closing conditions.

In Argentina, venture capital surges even as the broader economy stutters

Even as the Argentine government was announcing the biggest slide in the country’s economic output in nearly a decade, technology investors in the nation’s capital are all gearing up for record fundraising years.

Three of the country’s biggest firms (which are still small by international standards) are raising new, exponentially larger, funds in a sign that technology companies are showing promise despite the bleak picture painted by the broader economy in Latin America.

Leading the pack is NXTP Labs, the early stage investor that’s developing a regional network of accelerators and seed investment funds through partnerships that extend from Mexico City to Montevideo and Sao Paulo up to San Francisco. Despite its regional reach, home for NXTP is Buenos Aires and it’s there that the firm began accelerating and investing in early stage companies back in 2011.

NXTP has already had 13 exits, according to Crunchbase, and is perhaps the most mature of the crop of investment firms in the country. It’s also looking to be among the largest as it capitalizes on that track record of exists and a portfolio of investments that has raised follow-on capital of nearly half a billion dollars. 

The firm is currently knocking on doors to raise $120 million, a significant step up from its previous $38.5 million investment vehicle.

NXTP Labs isn’t the only firm based in Argentina that’s looking to significantly expand its capital under management. Jaguar Ventures, a firm that invests in both Argentina and Mexico, and Draper Cygnus, an Argentine-focused, Buenos Aires-based investment firm has already raised roughly $30 million of the $60 million it has targeted for its new fund,

While Cygnus is very much focused on the early-stage Argentine opportunity (which makes sense given the track record of technology companies coming out of the country — and the capital behind the firm) both NXTP and Jaguar have more of a regional perspective. And Jaguar, too, is massively increasing the size of its fund.

While its first fund was only $10 million, the new one will be closer to $60 million, according to one person with knowledge of the firm’s plans.

Behind the surge of confidence in the region’s technology fortunes, despite the economic turmoil that continues to roil the region, is a growing track record of valuable companies — all with a homebase in Latin America’s largest market.

And while Brazil remains the region’s undisputed economic powerhouse, there’re growing numbers of tech giants coming from Mexico, Argentina, Colombia, and Chile, investors said.

As Gonzalo Costa, a co-founder of NXTP Labs wrote in an editorial for TechCrunch earlier this week:

For the first time, companies are raising rounds of $100 million plus. 99 (acquired by Didi Chuxing), Nubank and Rappi, have all raised mega rounds in the past two years. Others have raised large rounds, such as Selina and Movile, with $90 million-plus, or Auth0 (part of our portfolio), with $50 million rounds in 2018. But the increase in dollar amounts is not only driven by mega rounds. More than 30 transactions of $3 million or more happened in 2017, which is triple in amount of rounds of that figure when compared to 2016. This shows a market maturity not seen before.

Not only are companies attracting more capital, but entrepreneurs are launching companies across a dizzying array of technology verticals.

These are companies like NubiMetrics, which provides competitive analysis and data for marketplaces like MercadoLibre; or Satellogic, which is developing a network of satellites for earth observation (and raised $27 million last year); or Pago Rural, which provides financing options for farmers in Latin America (and is raising a $20 million round, according to sources).

It’s clear that venture capital and tech in Argentina (and across Latin America) is having a moment. But with a broader base of local capital, it’s possible that this moment could become a movement. And that would have a profound effect on economies around the world.