Venture capital investments surpasses private-equity funds

Private-equity and venture capital funds invested R$23.6 billion in Brazilian companies in 2020. This is the second largest volume of this type of investment since the records began, only 7% behind the total seen in 2019.

A total of 255 companies received investments, according to research by Brazilian Private-Equity and Venture Capital Association (ABVCAP) and KPMG. Some of these companies haven't yet reported the value of the transactions to the entity, which may raise the total amount.

Venture capital investments were higher than those of private equity funds for the first time in history, with R$14.6 billion in transactions. Private-equity funds invested R$9 billion. Venture capital funds focus on emerging companies, with great growth potential, while private equity funds target companies already consolidated.

"The strong performance of the private-equity and venture capital industry in such a complicated year is further evidence of the robustness of the investment ecosystem in companies in Brazil," says Piero Minardi, president of ABVCAP. "Brazil is consolidating itself as a global center for innovation and entrepreneurship."

Of the companies that received investments last year, 200 had contributions from venture capital funds and 55 from private-equity funds. In the fourth quarter, the average investment per company was R$67 million in venture capital, and R$409 million in...

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