São Paulo, Oct 31 (EFE).- Brazil, Latin America’s largest corporate venture capital (CVC) market, has embraced the expansion of this sector as a strategy to bolster the country’s startups, promote the development of innovative tech solutions, and attract foreign investment.
ApexBrasil’s Commitment to CVC Growth
The Brazilian Export and Investment Promotion Agency (ApexBrasil) has made consolidating and growing this market one of its priority policies.
Helena Brandão, ApexBrasil’s Investment Manager, told EFE that Brazil offers ample opportunities in the sector, particularly for deep tech companies, which use technology to create impactful solutions for social and environmental issues.
“Brazil is a hub of innovation, and it’s not just about companies but solutions. The country hosts over 50% of Latin America’s unicorns, and more than 60% of the funds that come to Latin America flow into Brazil,” she added.
Brazil’s Leadership in Latin America’s CVC Market
According to Global Corporate Venturing (GVC) CEO James Mawson, Brazil has emerged over the past decade as one of the world’s top 10 powers in the sector, with 150 local corporate venture capital firms and $1 billion in investments from foreign companies.
A report from GVC indicated a 63% increase in CVC market deals in Brazil between January and September 2024, compared to the same period in 2023.
“The business ecosystem has transformed in a decade (in Brazil). The country is driving its GDP growth rate through productivity and innovation,” Mawson told EFE.
Highlighting Investment Potential Through Corporate Venture Brazil
To highlight opportunities and strengthen the CVC market, ApexBrasil has invested in Corporate Venture Brazil since 2015. Corporate Venture Brazil is the largest event of its kind in Latin America. Its eighth edition brought nearly 30 major international corporations to São Paulo this Tuesday and Wednesday, allowing them to explore the Brazilian ecosystem up close.
Hundreds of startups were also able to showcase their business models to potential investors. Attendees participated in business rounds and panel discussions on topics such as renewable energy, artificial intelligence, bioeconomy, and technological development.
CVC Event Impact and Global Market Alignment
Over the past seven editions, this annual event organized by ApexBrasil and GVC has facilitated more than 800 business meetings, generating at least $600 million in new investments, with aims to continue increasing these outcomes.
Brazil’s CVC market figures align with a rising global market. In 2013, the global venture ecosystem grew from $55 billion to $250 billion in 2023, with corporate venture capital playing a major role, surging from $20 billion in investments in 2013 to $111 billion in 2023, Mawson said.
Envisioning the Future of Venture Capital
Mawson added that, on average, around a quarter of all transactions worldwide involve the participation of a large corporation, which also reduces the risk of failure for startups.
“When we think of venture capital or corporate venture capital, it’s about envisioning the future and investing in it to accelerate progress while understanding trends that allow us to benefit and be part of the solution. Climate change, sustainability, and electrification are all part of these challenges,” he concluded. EFE