Brazilian companies with innovative, socially impactful, environmentally positive projects are eligible to register for the “Second Round of Impact Investing” sponsored by the Brazilian Export and Investment Promotion Agency (Apex-Brasil).
The participating companies will present their projects and products to potential venture capital and private equity investors. These investors acquire minority stakes in private companies to foster their development.
The investment round is an opportunity for companies seeking capital to introduce themselves to potential investors. Other similar events have been held for services- and export-oriented enterprises.
According to the international business analyst at Apex’s Executive Investment arm, Gilberto Socoloski Junior, the initiative arose out of interest from both enterprises and foreign investors.
“There is an appetite for the establishment of investment funds that tend to funnel money into companies that work on the socio-environmental [sector] in emerging countries,” he said.
Socoloski said there is potential for up to US$ 40 billion to be invested into this type of business in Brazil. As cases in point, he mentioned companies that provide microcredit to development in impoverished areas, or ones that work on urban solid waste management.
Companies must be based in Brazil to apply. Both Brazilian and international investment funds are eligible. The primary focus, however, is on attracting foreigners. According to Socoloski, investors from the United States and Europe are often most interested in projects of this type.
To apply, interested companies must fill in a form on the Apex website, outlining their innovative processes or products. Socoloski and two other Apex professionals will select as many as 20 Brazilian companies on the strength of these forms.
Companies that qualify to the second stage of the selection will face an “examination board” in São Paulo on September 22nd and 23rd. Delegates will have 15 minutes to introduce their companies, processes, products and business plans, plus another 15 minutes to respond to inquiries.
Following this stage, 12 companies will be shortlisted to introduce themselves to potential investors. The meeting with investors will also take place in São Paulo, on December 3rd.
From the time they are shortlisted until the presentation date, the businesses will receive coaching from Apex technicians to help them hone in on their most important features when it comes to being targeted by investment. At the meeting with investors, the delegates will only have 15 minutes to showcase their projects.
Apex does not intervene in the negotiations once the companies and funds begin interacting. According to Socoloski, negotiations usually take from a year and a half to two years to come to fruition. The companies will be charged no fees, but will have to meet their own costs during the process.
Registration for investors is open until the end of October.
Registration form and regulations for companies: http://www.apexbrasil.com.br/emails/institucional/2014/72/html2/
Registration form for investors, in Portuguese: http://www.apexbrasil.com.br/inscricoes/institucional/2014/64/index.htm
Registration form for investors, in English: http://www.apexbrasil.com.br/inscricoes/institucional/2014/65/index.htm
Additional information: http://www2.apexbrasil.com.br/en
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