Brazil Special Report: VC Awaits Big Breakthrough
Incubators for entrepreneurs in Brazil have increased three-fold during the past five years and venture capital has taken off. However, Brazil awaits a grand VC success story.
by Jason Mitchell
At the start of the decade, just 135 incubators buildings or studios set up for budding entrepreneurs, often linked to universities had been set up in Brazil, while more than 400 exist today, according to the Brazilian Venture Capital and Private Equity Association (ABVCAP). The incubators are home to some 4,000 start-ups, according to the Genesis Institute, an incubator attached to Rio de Janeiros Catholic University.
ABVCAPs president, Luiz Eugenio Junqueira Figueiredo, says that 15-20 venture capital (VC) groups now exist in Brazil and that they have raised between 500 million and a billion reais since the year 2000. The average venture capital fund now being set up in Brazil seeks to raise 80 million to 100 million reais while five years ago it could only raise 20 million reais, Figueiredo says. Many are now undertaking their second or third round of fundraising.
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