Skip to content

The Brazilian government will contribute $ 4 million to a start-up fund, and a cryptocurrency company is one of the beneficiaries

June 13, 2020

The Brazilian Development Bank (BNDES) announces a R $ 20 million fund (approximately $ 4 million) Accelerate startups and for the first time A company affiliated with Bitcoin will benefit from it.

The Brazilian National Bank for Economic and Social Development (BNDES) will contribute another 20 million reais (approximately $ 4 million) to the Ángel Fund to support start-ups and advanced technology companies.

According to the BNDES, the BNDES participation is at this second quota rate The fund will reach 60 million reais (about $ 12 million).

The Brazilian government will contribute $ 4 million to a start-up fund, and a cryptocurrency company is one of the beneficiariesThe Brazilian government will contribute $ 4 million to a start-up fund, and a cryptocurrency company is one of the beneficiaries

And among the fintechs who have received the financial contribution from BNDES for the first time, there is a company associated with Bitcoin and cryptocurrencies, QR Capital.

The investment

The fund is expected to reach approximately 145 million reais (approximately USD 29 million) in assets and add the bank’s contributions to those of private partners.

In addition, as reported by BNDES to Cointelegraph, the Ángel Fund started in July 2019. With a fortune of 76 million reais (approximately $ 15 million), of which 40 million ($ 8 million) came from BNDES and the rest from other investors and Domo Invest, companies were selected to raise the capital contributed manage.

Despite the crisis resulting from the Covid 19 pandemic, Domo Invest expects the 20 startups’ investment target to be achieved by the end of 2020.

In the first few months of operation, managers and analysts spoke to more than 600 founding partners of start-up companies and so far selected 14 of them, four of which are in the portfolio, with a signed investment commitment.

BNDES supports innovation

According to the BNDES, the Ángel Fund is an initiative of the BNDES, which It enables investments in companies with an annual income of less than 1 million reais ($ 200,000).

It focuses on the sectors of creative industries, agriculture, health, biotechnology, financial technologies, smart cities and information and communication technologies.

With the support of these newly founded companies, the bank is promoting the capital markets for this type of investment and stimulating the innovation ecosystem.

“The fund closes a gap in the market by providing resources in two main phases. In the first phase, the initial investment enables the company to be established.

In the next phase, startups that reach the level of a small innovative company can choose a new capitalization to accelerate their growth. These additional investments can reach R $ 5 million (approx. USD 1 million) for each startup, “emphasized the BNDES.

Invest dome

Domo Invest was selected in 2018 by public tender and is the manager of the fund. He is therefore responsible for mapping the companies, coordinating with angel accelerators and investors, and for attracting other investors.

The fund is expected to have a term of 10 years and an investment period of five years, which can be extended by another two years.

According to Pablo Valente de Souza, superintendent of the BNDES capital market area, the entry of new shareholders shows the importance of the fund.

“We are pleased with this increase in the Ángel Fund’s assets because entrepreneurship and innovation are in line with the BNDES mission itself,” he said.

This optimism is also shared by Bruno Lakowsky, BNDES Director for Investments, Capital Markets and Indirect Loans.

“The Angel Fund is support for innovative micro and small businesses as one of the levers for economic and social development. The success of these efforts is therefore a source of pride for us.”

QR Capital

One of the four companies that received funds from the Ángel Fund QR Capital was also one of the 35 selected from the more than 7,000 that were enrolled in the first BNDES Garagem acceleration module last year.

Startup is active in the blockchain and crypto asset market and offers various types of solutions for digital assets as well as investments in projects and companies in the industry.

According to QR Capital CEO Fernando Carvalho, the connection with the Angel Fund generates not only financial investments for business growth, but also market and technology knowledge.

“The fund is an important incentive mechanism for starting a business because it provides access to capital and protection for businesses in their early stages of development, and it increases the ability to grow in a more structured and faster way,” he said. .