Brazilian AI startup fund Shiva raised $10 million, and it's betting on tiny teams. Read its pitch deck.

A new player in the Brazilian startup ecosystem, Shiva, is revolutionizing the approach to funding by focusing on compact teams. With a fresh capital infusion of $10 million, this innovative fund is dedicated to supporting AI startups comprising only one to three individuals, referred to as "Stars." This strategic shift underscores a belief that large teams and hefty funding rounds are no longer prerequisites for success in the competitive global marketplace. Founded by Lucas Marques, a Brazilian entrepreneur with a rich background in fintech, Shiva is backed by the venture capital firm Monashees. Marques envisions a future where AI technology opens doors for entrepreneurs from underprivileged backgrounds by significantly lowering operational costs. This philosophy aligns with the growing trend among startup founders and major tech companies, who are increasingly opting for smaller, agile teams that leverage automation instead of expanding their workforce. Marques, who hails from rural Brazil and previously served as COO at the fintech company Méliuz, which went public in 2020, is keen on fostering inclusive entrepreneurial opportunities. Shiva emerged from his efforts to establish an NGO called Programadores do Amanhã (Tomorrow's Programmers), aimed at teaching coding to low-income youth. This mission extends to the startups Shiva plans to support, prioritizing diversity among its founders. The fund will provide pre-seed capital to niche software companies for a maximum of one year, with funding capped at $300,000 per startup. In return, Shiva will acquire an equity stake in each enterprise, limited to 15%. Marques emphasizes that even modest exits—valued between $20 million and $50 million—can yield substantial returns with lower overhead. He notes, "While it's not a unicorn and doesn't guarantee an IPO, it can transform the life of a founder from a challenging background, impacting their entire community." Shiva's investment strategy includes a plan to exit its stakes through secondary transactions as startups pursue further funding, thereby reinvesting the profits into the fund. Additionally, the initiative offers mentorship and a supportive community for its founders. Currently, Shiva is in a trial phase with around 30 startups and is set to initiate fund deployments shortly. One notable participant is FoxApply, a startup that streamlines LinkedIn job applications and has quickly gathered about 600 international clients within just two months. Ultimately, Shiva aims to support 100 startups and will continue to accept new applicants on an ongoing basis.