SAN FRANCISCO--(BUSINESS WIRE)--The Brazilian Trade and Investment Promotion Agency (Apex-Brasil) announced its latest annual report ‘Corporate Venture in Brasil – General Information,’ which documents Brazilian Private Equity & Venture Capital Investment and innovation ecosystem from 2002 to 2014.
While Brazil’s inflation and unemployment statistics remain high, one sector of the economy shines: private equity and venture capital investments into Brazilian start-ups and companies.
More than 150 Private Equity management firms and 40 Venture Capital firms in Brazil have invested R$ 126.9 Million (USD $33 Million) into 3,500 companies in all different stages of maturity. Already 50 of these PE/VC-backed companies have exited via IPOs, raising approximately R$ 35 Billion (USD $9.1 Billion).
“We started PuenteLabs with the premise that founders from Latin America are every bit as talented as their U.S. counterparts," said Mike Hennessey, executive director of PuenteLabs, an organization whose mission is to invest in and support top entrepreneurs from Latin America. "In particular, the macro headwinds in Brazil have created more opportunities for a cross-border fund and also for entrepreneurs looking to create truly global companies.”
To bring Brazil’s start-up economy to the attention of U.S. investors, a delegation of nine Brazilian companies presented their businesses in Silicon Valley on December 10th. Seven of the start-ups are part of Start-Up Brasil Program, an initiative from the Ministry of Science, Technology and Innovation (MCTI) managed by the Brazilian Association for the Promotion of Brazilian Software Excellence (Softex), and the other two are from InovAtiva Program from the Ministry of Development, Industry and Foreign Trade (MDIC).
“IBM is particularly interested in Brazil’s start-up sector because of the commitment that the Brazilian government has shown toward cultivating technology innovations in key areas like analytics, security, cloud and cognitive computing,” said Deborah Magid, director of software strategy for IBM Venture Capital Group. “In a digitally-connected world, the next breakthrough innovation can come from any country. And we will be there to help them thrive.”
Brazil is the seventh largest world economy with a GDP of USD $2.4 Trillion (2014), and the Brazilian government has developed 94 science parks, 300+ incubators, and more than 25 tech accelerator programs to ready its start-ups for a world stage.
“Since 2014 we are seeing investment from the U.S. to Brazilian funds and companies increase at a fast pace. During 2015 Q1 and Q2 we have observed the most active period of time in the past four years regarding new deals and commitments, with new players investing every month. Investors are seeing Brazil as a great opportunity right now. This year, especially, during every meeting with national and international players we are receiving feedback about how much the entrepreneurial ecosystem has developed in the past two years,” said president of Apex-Brasil, David Barioni Neto.
Delegation of Start-ups in Silicon Valley
A delegation of nine Brazilian start-ups presented their businesses to a panel of U.S. investors on December 10th at the second International Demo Day in San Francisco promoted by Apex-Brasil, Softex and MCTI. These start-ups are part of the two main government programs in Brazil that aim to foster entrepreneurship and innovation and to support and accelerate start-ups throughout the country. Several start-ups from the 183 that are part of Start-Up Brasil Program have won investments for U.S. venture capital.
“Brazilian start-ups are producing great technology and are already taking their innovation abroad. Start-Up Brasil is a Program focused on accelerating their ideas, helping them on the Go-to-Market strategy and putting them in contact with investors from Brazil and outside the country,” said vice-president of Softex, Diônes Lima.
To check all information and start-ups that presented on the second Start-Up Brasil Demo Day in San Francisco, access: http://bit.ly/BookDDSFO
The Brazilian Trade and Investment Promotion Agency (Apex-Brasil) works to promote Brazilian products and services abroad, and to attract foreign investment to strategic sectors of the Brazilian economy. The Agency supports more than 11,000 companies from 80 different industries, which in turn export to 200 markets.
Apex-Brasil also plays a key role in attracting foreign direct investment to Brazil, working to detect business opportunities, promoting strategic events and providing support to foreign investors interested in allocating resources in Brazil.