São Paulo – Brazilian companies interested in receiving investment to leverage their exports will have the opportunity to be face to face with equity fund managers in December. On December 11th in São Paulo, the Brazilian Export and Investment Promotion Agency (Apex-Brazil) will promote a meeting of selected companies and associates of the Brazilian Private Equity and Venture Capital Association (ABVCAP).
Entries are closed and 60 companies have applied. They will undergo a screening process to determine which have the conditions to receive a capital injection. According to the Apex investment coordinator, Maria Luisa Cravo, the initiative arose out of a project the Apex has been developing with the ABVCAP since 2009. The two have joined forces to increase the visibility of Brazilian funds abroad. Early this year, they also began working to find Brazilian companies which are able to receive investment.
From this latter action there came the idea of arranging talks between companies interested in receiving capital and fund managers looking for promising companies. According to Cravo, the funds consider, for instance, who are the main company executives, the company’s track record of growth, its products and services, and the sector outlook. There are managers looking for business ranging from the more traditional industries such as fashion to those looking for new high-technology developers.
The companies selected by the Apex will give a ten-minute presentation to ABVCAP associates on December 11th. The intention is to initiate a relationship that may lead to future investment. The meeting targets companies already involved in one of the Apex’s export-oriented sectorial projects. Cravo explains that because the Brazilian market is strong right now, many companies export small volumes because they are unable to increase production capacity. The goal is for capital injections to facilitate expansion and thus enable exports, or else for the newly arrived capital to enable investment in the international market.
The managers who will attend the meeting, which is called the “Venture & Seed Export Forum,” represent established funds in Brazil, but most also count on foreign capital. According to the Apex investment coordinator, there are no restrictions regarding company size for receiving investment from a fund. Some even prefer smaller companies, she says. From 12 to 15 companies are expected to present themselves. Those which do not get selected will receive feedback on the reasons, and undergo training.
The companies will be divided into those with profile to receive investment from seed capital funds, with annual revenues of up to R$ 10 million, and those best suited for venture capital, with annual revenues higher than R$ 10 million. The companies must be actually establisher, rather than just projects. In addition to injecting capital, the funds will participate in company management. In addition to the Apex and the ABVCAP, the Studies and Projects Funding Body (Finep) is involved in the initiative. The venue for the meeting has not been chosen.
*Translated by Gabriel Pomerancblum
