A Brazilian startup fund, Shiva, has successfully raised $10 million to support AI-driven startups comprising one to three members, referred to as "Stars." This fund aims to provide monthly stipends instead of large upfront investments, changing the traditional funding model for early-stage companies. Founded by Brazilian entrepreneur Lucas Marques and backed by venture firm Monashees, Shiva intends to empower founders from diverse backgrounds by reducing operational costs through AI.
Shiva will provide funding for niche software companies at the pre-seed stage, offering up to $300,000 per company while taking a maximum 15% equity stake. Marques believes that smaller, profitable ventures with revenues between $20 million and $50 million can deliver significant returns despite not being unicorns. He emphasizes that these companies can transform their communities, particularly for founders from underprivileged backgrounds.
Currently in a testing phase with around 30 startups, Shiva plans to begin deploying funds in the coming months. One participant, FoxApply, which automates job applications on LinkedIn, has gained approximately 600 international customers in just two months. The fund ultimately aims to back 100 startups and will continue to accept new applicants as it progresses.