Galena Raised $16.7 Million from Alto Ventures to Train Poor Young Brazilians Graduates of Public Schools Enter the Labor Mark

Galena funds raise marks a winner study-now-pay-later strategy

Study-now-pay-later Brazilian startup Galena raised $16.7 million led by Silicon Valley venture capital fund Altos Ventures to train for and place young Brazilian graduates of public schools in the labor market, and to expand its project that aims at assisting 50,000 students within five years. Galena raised the new funds to add up to the previous seed round of $7.5 million raised in March of last year, a few months after its foundation.

Galena Series-A round was followed by Exor N.V‘s ventures arm Owl Ventures, Reaction, and Globo Ventures, in addition to individual investors such as David Velez, Kevin Efrusy, Dan Rosensweig, Armínio Fraga, Romero Rodrigues, and André Street. 

Galena was founded in 2020 by Guilherme Luz and Eduardo Mufarej, two entrepreneurs with a large experience in education.

Mufarej founded Renova BR, a school for preparing political leaders. Eduardo Mufarej was one the founders of the investment fund Tarpon Capital but years later left the fund to focus in preparing future political leaders in RenovaBR.

Luz worked at Nova Escola, a teach the teacher training group backed by the Lemann Foundation, founded by Brazilian billionaire and philanthropist João Paulo Lemann.

Galena partners with 18 companies among them the likes of iFood, QuintoAndar, Cora, Unilever, Stone, Nubank, Alelo, XP, Arco, Dell, PetLove. The startup is able to get young people into the job market with an average salary of BRL $2,300 plus benefits and career plan. According to Luz all the students who trained in the first group found jobs, and 45% of the second group is already working (the deadline for entering the job market via startup is three months).

The business model as Galena raised its $16.7 million Series-A has social appeal and tracking: Study-Now-Pay- Later

According to Galena’s business model instead of paying for the training, students only pay for it when they are employed. If at the end of the three-month period they have not found a job, they do not have to pay for the training they received. The final cost of the training ranges from BRL $3,500 to BRL $6,000. The startup also gets a fee per hire made by partner companies.

The Esquires and the Firms Behind the Deal

Bronstein Zilberberg Chueiri Potenza Advogados  acted as Brazilian legal counsel to Galena.

Partners Guilherme Potenza and Priscila Gurgel Menezes led the Bronstein Zilberberg’s transaction team with contribution from associates Giuliana Veronez Primati and Paloma Batt.

The Top Ranked Chambers Brazil 2022 Bronstein Zilberberg Chueiri Potenza Advogados is a full service law firm based in São Paulo, and it is highly recognized as one of the leading top-tier M&A Venture Capital law firms in Brazil.

Campbells acted as international legal counsel to Galena with senior associate Daniel Russel leading the firm’s deal team.

Veirano Advogados acted as Brazilian legal counsel to Altos Ventures. Partner Daniel Augusto Malatesta led the firm’s transaction team with contribution from associates Pamela Gerenutti de Campos Pinheiro and Fernando Zucchi Calado.

The Global Chambers Brazil and Latin Lawyer 250 Veirano Advogados is a full service law firm based in São Paulo with offices in Rio de Janeiro, Porto Alegre and Brasília, and is highly regarded as one of the top Brazilian law firm in the corporate spaces specially in the areas of M&A, Private Equity and Venture Capital.

Cooley LLP acted as U.S. counsel to Altos Ventures. Partner Mark Tanoury led the firm’s deal team with contribution from associate Emily Lannareli.

Cooley LLP is a full service US Global law firm with headquarters in Palo Alto, California, and with 16 offices around the world.

Maples & Calder acted as international legal counsel to Altos Ventures with partner Patrick Rosenfeld leading the firm’s deal team and with contribution from associate Piers Reynolds.