New round of Betterfly financing

After a new round of financing, Betterfly becomes the third Chilean unicorn.

The Third – Pulse

Its valuation rose to US$1.000 billion and follows in the footsteps of Cornershop and NotCo. The extraordinary period of growth for Chilean startups seems poised to continue in 2022. Betterfly closed another significant financing round that formally made it the third Chilean unicorn (companies valued at over US$1 billion). The other Chilean startups to reach this figure were Cornershop (US$3.5 billion) and NotCo (US$1.5 billion), both in 2021. Betterfly achieved this status after a “Series C” investment round where it raised US$125 million, also becoming the first Latin American B Corp certified company to be valued at over US$1 billion.

The investment round was led by Glade Brook Capital and included participation from other international investors entering Betterfly’s ownership, such as Greycroft and Lightrock, a global impact investment fund. QED Investors and DST Global Partners, who led the Series A and B investment rounds respectively, also participated in this process. Betterfly stated in a press release that it plans to use the raised funds to continue growing the platform, as well as to start operations in seven new markets during 2022—Mexico, Colombia, Argentina, Peru, Ecuador, Panama, and Costa Rica—and three new markets in 2023—United States, Portugal, and Spain.

The company already operates in Chile and Brazil. “We feel honored to have attracted some of the world’s best investors to be part of our ecosystem, which includes financial inclusion, well-being, and social impact. These funds will drive our plans to bring the Betterfly Effect to every corner of the planet by building a world where all people are financially protected and motivated to live their best lives,” comments Eduardo della Maggiora, founder and CEO of Betterfly. Paul Hudson, founding partner of Glade Brook Capital, added, “Betterfly is pioneering a new way to provide financial protection to millions of people by promoting their physical, mental, and financial well-being. We believe it is building the SuperApp for employee benefits and well-being, and we are incredibly excited to partner with Eduardo and his entire team.”


Before 2021, Chile had never seen any unicorns. In Latin America, there are 40 companies in this club, with Brazil accounting for 60% and also receiving 70% of venture capital funding in the region. Today, our country already has three companies with that designation. But what does it mean to be a unicorn in the global entrepreneurship world? The formal answer is to achieve a valuation of over US$1 billion. But many large companies also reach this valuation. The difference is that a unicorn achieves it very rapidly since its inception as a company. Therefore, it is generally held by a startup or scaleup. It’s a sign of accelerated growth. In fact, Betterfly is barely four years old. On the other hand, it enters a club of around 800 companies globally with a significant global impact.

“All eyes are on a company that has an innovation or business model that can change the world,” comments Claudio Barahona, partner at Alaya Capital, the first Chilean venture capital fund that has invested in a unicorn: Betterfly. There’s also a multiplier effect and a “reference” towards other entrepreneurs. Especially in a continent where there aren’t many unicorns, but it’s becoming increasingly attractive to major global venture capital. For example, in 2019, the Japanese giant Softbank allocated US$5 billion to invest in our region. “We always see these entrepreneurs generously sharing their experiences, best practices, mistakes, and loneliness. That role is fundamental for the maturity of entrepreneurial ecosystems. When they share their experience, they mentor others, inspire, and invest in the next generation of entrepreneurs. Great role models consolidating the ecosystem and giving back what they have received, pay it forward, that’s what we seek to achieve balance in this entrepreneurial ecosystem,” says María de los Ángeles Romo, manager of Start-Up Chile.

On the other hand, when a company reaches unicorn status, it continues to grow rapidly, with a clear roadmap, which is precisely given by its most recent injection of capital. In fact, investors (both new and old) are even more focused on its scaling scheme, which can be geographical, in terms of new products or services, improvement of technological development, or a plan with emphasis on commercial issues. That will depend on each startup. But if there’s one thing that remains absolutely open when becoming this mythical creature, it’s the possibility of going public. “The goal is probably to seek to go to Nasdaq (listing of technological companies on the New York Stock Exchange) and achieve an IPO, which is what the founders of Betterfly are seeking. In other words, to be the first Chilean company to do so,” explains Barahona. Even Matías Muchnick, CEO of NotCo, revealed in an interview with PULSO, the intentions to enter Nasdaq in 2023.