Brazilian fintech startup Trace Finance gained 400 new Latin American startups as customers following the meltdown of Silicon Valley Bank.
The firm claims that it has processed nearly $1.5M in transactions for new customer accounts. Trace launched a checking account solution just as SVB started spiraling to cater to the international banking needs of LatAm startups.
Trace last raised a $4.3M seed round in February 2022, led by HOF Capital.
- Many LatAm startups open bank accounts in the Cayman Islands or Delaware due to favorable tax laws. This makes international bank accounts more necessary for them.
- The firm saw an opportunity to cater to seed and early-stage startups, which are typically neglected by larger banks.
- Meanwhile, many large growth-stage startups have shifted their banking partner from SVB to Morgan Stanley or JPMorgan.
