5 articles Articles posted in VCs and Accelerators

Top Brazilian VC funds

Brazilian venture capital is not as developed in the US (less money and fewer funds) and there was historically a gap in the market in growth capital for startups which required $500k-1.5M to get off the ground.   However, in 2012 the VC industry is growing quickly with several new funds created in the last couple of years to invest in consumer internet. There is a long list of VCs at ABVCAP (Brazilian Association of Venture Capital and Private …

Continue reading →

Top startup accelerators in Brazil

Accelerators are accelerating in 2012! Since a few big name companies like DropBox came out of Y-Combinator, the model has been copied across the globe. They work well in the valley, a mature investing environment, and now accelerators are looking for the model that works in Brazil. There are many good opportunities for accelerators in Brazil. I think accelerators can really help in terms of providing easy and cheap work spaces, providing legal and tax …

Continue reading →

Top 10 US VC funds in Brazil

There has been a strong trend of US venture capital funds investing in Brazilian startups.  Over the last couple of years, more than a dozen companies have received financing from the US.  There are pros and cons associated with receiving money from the US investors which I discuss here.  Here are the top 10 US VCs in Brazil. 1) Accel Partners: Elo7, Shoes4You, Kekanto, Vostu, Baby.com.br 2) Benchmark: PeixeUrbano 3) Felicis Ventures: Baby.com.br 4) General Atlantic: PeixeUrbano, Linx 5) Insight …

Continue reading →

Brazilian investors versus US investors

When deciding on where to get funding for your startup in Brazil, its worth baring in mind that investment will have different advantages and disadvantages depending on where it comes from.  Here is a simplified contrast of Brazilian vs. US/EU investors: Brazilian investors will have a much better understanding of the subtleties of the Brazilian market compared to investors from abroad. Given the level of difference between doing business in Brazil vs. the US, significant …

Continue reading →

Why VC investment will increase your fixed costs

It’s a reality that receiving investment from a VC in Brazil can really increase your fixed costs, particularly in tax, accounting, HR and legal expenses.  Here are the main reasons why: Most bootstrapped startups set themselves up as a “limitada” so they can enter the “simples” tax regime with low tax brackets.  On receiving investment from a SEC regulated venture capital fund, a limitada startup needs to transform itself into an “SA” (sociedade anônima) for legal reasons. …

Continue reading →