{"id":287386,"date":"2021-01-21T16:35:55","date_gmt":"2021-01-21T19:35:55","guid":{"rendered":"https:\/\/anba.com.br\/?p=287386"},"modified":"2021-01-21T16:35:55","modified_gmt":"2021-01-21T19:35:55","slug":"the-startup-revolution","status":"publish","type":"post","link":"https:\/\/anba.com.br\/en\/the-startup-revolution\/","title":{"rendered":"The startup revolution"},"content":{"rendered":"

S\u00e3o Paulo \u2013 There were 12,700 startups in Brazil last year, according to the Brazilian Startups Association (Abstartups). That\u2019s almost three times as much as in 2015. This growth, the sheer size of Brazil\u2019s market, the ability to innovate, and a new regulatory framework for the sector enable Brazil and its entrepreneurs to come up with innovative businesses and solutions, and to rise up to the challenges posed by society and brands.<\/p>\n

Established 2007 under the name Acesso Digital, unico<\/a> got its first cash injections in 2020: BRL 40 million from Igah Ventures and BRL 580 million from General Atlantic and the SoftBank Latin America Fund. unico develops biometric facial recognition and safety systems and digital processes designed to speed up employee admission by Human Resources departments. In addition to being targeted by investment, the company made its own last August: it bought out another startup \u2013 Meerkat, out of Rio Grande do Sul.<\/p>\n

\u201cThings happened so fast because we at unico have become the infrastructure for businesses to go into the digital world. We provide safety to businesses, consumers and employees when it comes to remote relationships, which are the new way to relate. There\u2019s no going back from this reality, so we have a lot of growing to do as these relationships evolve and require greater safety,\u201d says unico cofounder and Strategy and M&A vice president Paulo Alencastro (pictured above<\/em>).<\/p>\n

Changes in sight<\/strong><\/p>\n

Investment in Brazilian startups is picking up. According to the Venture Capital Committee coordinator at the Brazilian Private Equity and Venture Capital Association (Abvcap), Humberto Matsuda, 2020 was the first year ever that venture capital \u2013 i.e., investment in up-and-coming businesses \u2013 exceeded investment in private equity funds, which involves established companies.<\/p>\n

\"\"<\/a>
Congressman Vinicius Poit is the rapporteur on startups at the Chamber of Deputies<\/figcaption><\/figure>\n

Up until June 2020, venture capital investment amounted to BRL 5.7 billion, with private equity seeing BRL 4,5 billion, Matsuda claims that this is a \u201creflection of the fact that Brazil\u2019s startup ecosystem has matured. He argues that the pandemic had little effect on the industry\u2019s behavior. \u201cThere has been no significant change in investment trends. The main reason behind the hike was a low interest rate,\u201d says Matsuda.<\/p>\n

Last December, Brazil\u2019s Chamber of Deputies approved a new Legal Framework on Startups. Complementary Bill 146\/19 was submitted to Senate, where it\u2019s being reviewed under senator Carlos Portinho.<\/p>\n

The bill\u2019s rapporteur at the Chamber of Deputies, representative Vinicius Poit, argues that the biggest changes to be ushered in by the new framework include exonerating non-executive investors from any lawsuits involving the startup at hand \u2013 a legal liability that scares away would-be investors.<\/p>\n

\u201cSomeone who\u2019s simply investing in a startup and does not hold an executive position in it will not be held accountable for any debt incurred by the company, whether it be labor or tax related or whatnot. The framework also includes provisions on fostering research, development and innovation. This paves the way for increased availability of resources to innovative enterprises,\u201d says Poit.<\/p>\n