São Paulo – The “Start-Up Brasil” program will fund projects by 25 non-Brazilian technology companies interested in working in Brazil and in need of capital to develop. Promoted by the Brazilian Ministry of Science, Technology and innovation, the endeavour is a part of TI Maior, a strategic federal government project geared toward software and information technology services.
The program is meant to connect the start-ups with accelerator companies, i.e. those with the capital and the knowledge to invest in start-ups. The program has a budget of R$ 40 million (US$ 19.8 million). Besides foreign enterprises, “Start-Up Brasil” will also benefit 75 domestic companies.
“The program has come to include foreign companies based on the premise that this is a global chain, and we cannot devise global technology solutions through Brazilian enterprises alone,” explains Rafael Moreira, the ministry’s software and services coordinator. “The United States has done that very well. There are other international experiences that show that foreign companies usher in new ideas, and that causes the program to become a world-class level program,” he says.
The program is open to companies from all over the world. Participating companies are required to be formally established for at least three years, and to develop innovative products or services that use software and IT services as part of their solution. Foreigners whose projects are approved will receive aid in obtaining temporary visas to Brazil.
Each shortlisted start-up will get up to R$ 200,000 (US$ ) a year from the federal government, transferred in the form of R&D grants from the National Council for Scientific and Technological Development (CNPq). The start-ups will also receive funding from the accelerator companies.
Depending on negotiations between the parties, the amount may vary from R$ 20,000 to R$ 1 million (approximately US$ 10,000 to US$ 500,000). There is no limit as to how many employees the applying companies have, but the shortlisted companies will have to adapt to the amount received from the program in order to fund their personnel’s trips to Brazil.
In the first phase of the project, the accelerator companies that will become associated with the start-ups have been defined: Acelera Brasil (Microsoft Participações), Wayra, 21212, Aceleratech, Papaya, Acelera MG (Fumsoft), Outsource Brasil, Start You Up, and Pipa. “Many of the accelerators are already accustomed to working with international entrepreneurs. One of the aspects taken into consideration during the selection was the accelerators’ internationalization level,” says Moreira.
The deadline for start-ups’ entries is May 31 and the shortlist will be announced in July.
The acceleration programs will start in the first half of August, during the “Induction Week”, an event that will outline the program and will be attended by all of the shortlisted companies. According to Moreira, all of the program’s activities will be bilingual. “The lectures will be given in English or Portuguese with simultaneous translation. The environment at the accelerator companies is also bilingual,” he says.
Programs’ durations range from 3 to 12 months, depending on the accelerator company. The entrepreneurs will be physically located within the accelerator’s infrastructure, and benefits will include physical workspace, legal advising, coaching and mentoring.
“Accelerator companies work in business development. They will prepare entrepreneurs, appoint mentors, investors and technological knowledge. The accelerators prepare entrepreneurs not only to sell and to have a good product, but also to attract investment,” says Moreira.
The entry form was made available last Friday (3rd). Thus being, the ministry does not possess sufficient data to determine the nationality of the companies applying for the grants. Still, according to downloads of the call for entries in English language, the main countries were the United States, Argentina, Chile, United Kingdom, India and Russia. “Roughly 2,000 have downloaded the file,” says the coordinator.
Moreira also says that in the second half this year, “Start-Up Brasil” will open an office in the United States’ Silicon Valley. “Our new hub will allow accelerators and start-ups from the world over to become acquainted with Brazilian companies. It will also offer support and services, such as introducing Brazilian companies to accelerators and investors,” he says. The office will be in the city of São Francisco, and is being organized in partnership with the Brazilian Export and Investment Promotion Agency (Apex).
Those interested in participating in “Start-Up Brasil” are to click on the link below: http://startupbrasil.mcti.gov.br/en/
*Translated by Gabriel Pomerancblum
