in 5 years
of the capital comes from international investors
About the Brazilian VC&PE Industry
Opportunities for Private Equity and Venture Capital in Brazil have picked up since 2011. The segment dynamism is related to the growing amount of capital committed for investments in the country. The volume has significantly increased over a 9-year period, as well as an increasing gross payout to investors according to ABVCAP, the Brazilian Association of Private Equity and Venture Capital. Since 2009, a joint initiative between ABVCAP and Apex-Brasil was developed to connect international investors to Brazilian fund managers and companies.
- Brazil has more than 220 active Fund Managers;
- From 2016-2021 Brazil was able to deliver 18 unicorns;
- There are more than 13,000 Startups – outstanding opportunities in Fintech, Healthtech, Advanced Manufacturing and Agtech;
- In 2018 the average private equity ticket for a company was R$ 95 million while venture capital average ticket was R$ 50 million;
- 66% of the capital committed in the Brazilian PE / VC industry in 2018 comes from international investors, an increase of 24,52% considering 2016 share and 34, 69% considering 2012 levels;
- Exits activities are also increasing and proving the industry maturity. While 2011 registered R$ 3,6 billion in exits, on 2018 that amount reached R$ 13,7 billion representing an increase of 280% that has been growing through the years;
Considering regional venture capital performance in Latin America by managers, angels and corporates, Brazil has represented 50,5% of the deals made in the region followed by Mexico with 22,7% and Chile with 9,1%. According to the Latin America Venture Capital Association (LAVCA) U$ 2,49 billion were invested on 222 deals in the Brazilian venture capital side of the industry in 2018 this amount was U$ 1,3 billion representing an increase of 91,53%. Regarding invested industries by amount, LAVCA reports Fintechs, Logistics and Proptechs as the top three industries. Once considering number of deals Fintechs, HealTechs and Proptechs are the top performers followed by SAAS, e-commerce and Edtechs. Check the some figures from the region below:
The Brazilian private Equity & Venture Capital Association (ABVCAP) delivers a different perspective than LAVCA. Its data is focused to fund managers activity only. While the private equity average ticket has been decreasing to smaller sizes in terms of invested amount the venture capital average ticket goes on opposite and increasing over the years. Considering number of deals the private equity activity is slightly increasing from 2015 to 2018, but venture capital deals are progressing faster.
Check some Brazilian VC&PE Highlights
Regarding the activity of Private Equity and Venture Capital, Apex-Brasil facilitates the connection between International Limited Partners (LPs) and General Partners (GPs) to Brazilian funds and Innovative companies. The Agency also support corporations and their venture capital approach trough matchmaking and special projects. About activity of corporate venturing, a major trend in Brazil, at least 150 corporations are playing an increasing role to support entrepreneurs, provide liquidity and foster high-tech deals.
Since 2010, Apex-Brasil and ABVCAP have supported over USD 18 Billion to be fundraised by Brazilian funds managers and more than USD 330 Million from international Corporate Venturing Funds (CVCs) on direct deals and funds. Check some figures and numbers about the regional and local industry:
About Brazilian Startups
Back to 2011 the year that the first mapping of startups has been delivered to the market by the Brazilian Association of Startups (ABSTartups) there were 4.000 companies in Brazil. The community has kept growing through the years reaching 10.000 companies in 2017. Now the number of new companies is still growing beyond 13.000 representing an evolution of 225% in 8 years. Most recently many industry focused mappings have been produced and published, especially oriented to promising sectors such as Agritechs, Fintechs, Mobility, Cosntrutechs and others. Considering the mapped area of interest companies are offering solutions to these following TOP 5 fields: EdTechs, FinTechs, HealthTechs, AgriTechs and RetailTechs. Once considered the TOP 10 communities where these startups are based the city of São Paulo ranks 1st with 45% of the companies followed by Rio de Janeiro (12%), Belo Horizonte (10%), Porto Alegre (9%) and Curitiba (6%). Other ranked cities present shares ranging from 4% to 3% and are Florianópolis, Brasília, Salvador, Recife and Fortaleza.
Since 2010 Apex-Brasil has supported international investors to commit more than U$ 18 billion to local funds and companies.
The Agency works closely with 300+ financial investors monitoring their thesis and advising matchmaking opportunities through its projects and promotional calendar every year. Besides connecting financial investors to opportunities, most recently Apex-Brasil is promoting investments to develop new technologies and foster innovation. New services and tools incentive tech partnerships, soft-landing programs and support other international R,D&I activities to expand operations in Brazil.