Brazilian investors will go to Israel looking for innovation

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  • Posted on May 21, 2015

    Developing companies is essential in order to position Brazil as a positive environment for innovation and, when it comes to that, venture capital, angel investors and investment funds are prime players. Looking to establish a relationship with investors and companies in the region as well as learning about the culture of one of the most innovative ecosystems nowadays, a mission to Israel was organized by the Brazilian Exports and Investment Promotion Agency (Apex-Brasil), Anjos do Brasil, the Brazilian Private Equity and Venture Capital Association (ABVCAP) and the Israel Economic Mission, partnered with the Interamerican Development Bank (BID), administrator of the Multilateral Investment Fund (FUMIN).

    “The US and the UK are the priority targets for us to find investment resources in the country. However, we must diversify the risk undertaken by Brazilian managers during the fundraising process, since they are overly exposed to market fluctuations in these countries. For that, we are initiating with this mission the process to open ourselves towards other countries with mature investment in participation ecosystems”, explains Apex-Brasil president, David Barioni Neto.

    According to statistics from the Emerging Markets Private Equity Association (EMPEA), approximately 1,7% of Israel’s GDP is in investment funds. “Israel is a relatively small market with an unfavorable geographic position. For our managers, it’s important to understand how companies develop themselves, build capital and make their exits. To understand the process is necessary to understand every player’s participation, from accelerators, startups, and venture capital firms. Through this contact, we expect to better understand the ecosystem as well as getting to know the main players in this scenario and promote investments and partnerships between the two countries”, states ABVCAP president Fernando Borges.