Microsoft and Banco Espirito Santocreate fund to foster startups
Qualcomm and AgeRio are other investors in Brasil Aceleradora de Start-ups,
focused on young technology companies
São Paulo, March 13, 2014 – Microsoft Ventures and BESAF - BES Ativos Financeiros, through Espirito Santo Ventures,are creating a new investment fund focused on supporting young technology companies.The fund,Brasil Aceleradora de Start-ups Fundo de Investimento em Participações(the Brazilian Startups Accelerator Investment Fund), also includes QualcommIncorporated, through its venture capital arm, Qualcomm Ventures,Espírito Santo Venturesand AgeRio as investors.They will start the operation with 10 million BRL,with the potential to reach 300 million BRL, to foster startup companies and accelerators for entrepreneurs.
With the purpose to contribute to research and development in Brazil and to increase the national competitiveness, the investorshave combined efforts to create the fund.This is a project that differs mainly for its operation with a level of startups for which there is a lack of financial incentives.It will offer investments from 120 thousand BRL to 3 million BRL, to help startups that usually don´t find support from accelerators or funds to increase their business.
Besides the investment in a different range, the selected startups will also count on a network of collaborators to speed up processes in various fronts, such as: mentorship, operational support, technological support, physical space, business networking and financial support.In addition, when the startup becomes more mature, there is also access to a fund to support the company in a second round of investment.
The fund is intended to invest in technological basis startups that can contributeto strengthen the Brazilian economy by bringing practical solutions to key areas: education, cybernetic defense and security, health, oil and gas, energy, aerospace and aeronautics, athletics, agriculture and environment, finance, telecommunications, mining and strategic technologies, as well as cloud, mobility, and high performance computing.
At first, the fund will use the Acelera Partners selection process to attract startups. Microsoft Ventures, the technical advisor to the fund, will help recommend startups and accelerators for selection to BESAF, who is responsible for the investments according to regulations.
To be selected, startupsneed to have an annual revenue minimum of 120 thousand BRL andmaximum of 3 millions BRL.The level of maturity of the company will define the level of incentive. For startups starting their implementation, with zero revenue, there is an acceleration stage (first cycle), which will be managed by Acelera Partners. The companies which go through this stage, enter the next stage (second cycle) to prepare to receive investments from the fund, achieving a revenue of 300 thousand BRL. From then on, companies who go through both stages are qualified to apply for the investment of Brasil Aceleradora de Start-ups Fund.
“This is an unique combination that comprises a startup’s accelerator and an investment fund, which will allow the creation of real cycles of super acceleration. We want to help entrepreneurs to turn great ideas into successful companies”, says Mariano de Beer,General Manager of Microsoft Brazil. “We have a long-term commitment to innovation because we believe this is one of the factors that contribute to national competitiveness and development of the country".
“There are many interesting opportunities in the startups segment,”said Ricardo Espirito Santo, President of BES Investimento do Brasil.“Other than the financial outcomes,the investment from the fund promotes the country's growth. Brazil has become an important technological center for developing companies and Espirito Santo is pleased to actively support the local entrepreneurial ecosystem.”
"With today's announcement of our co-investment with Microsoft Ventures we reinforce our commitment to fostering innovation in the mobile industry,” said Rafael Steinhauser, senior vice president and president, Qualcomm, Latin America. “We are happy to support this initiative which addresses a gap in the funding continuum for young companies in Brazil. Qualcomm supports the Brazilian developer community by fueling creativity and financial investment, technical expertise and a network of relations with other players in order to help their projects become successful.”
"The investment in venture capital at IT sector is strategic for the AgeRio's Investment Policy. We believe that Rio has the prerequisites and entrepeneurs for development of a cluster of technology-based IT companies. The Rio de Janeiro has great prospects and has an ecosystem of Private Equity in shaping. However we have seen a large concentration of these resources for funds who have big companies on focus and we identified as an opportunity to develop new companies using Seed Capital, because there is no harvest without sowing. So we hope a positive effect throughout the chain by investing in the Fund Brazil Accelerator, because of focus and expertise of managers of Banco Espírito Santo and Microsoft as important partners" - said Claudio Moraes - Superintendent of Equity , Partnerships and Products in AgeRio.
Network of Selected accelerators and startups
Startups can benefit from the investments of Brasil Aceleradora de Startups or through Acelera Partners, a network of accelerators constituted by the fund and independent partners, who contribute to the strengthening of entrepreneurship and innovation.
The Accelerator seeks to support the creation and development of new companies with a high potential for growth, not only in the local market, but also at a global scale. Every enterprise comes from a platform of acceleration of national scope, which is already born integrated to a worldwide accelerating network, by means of the partnership established with Microsoft Ventures.
“Collaborating with key organizations to provide critical resources for entrepreneurs is important for the evolution of local startup ecosystems around the world,” said Rahul Sood, General Manager & Partner of Microsoft Ventures. “As a founder, I understand the struggles entrepreneurs go through to bring new businesses to market. Startups in Brazil have the tenacity to dream big and we are thrilled to help them turn great ideas into successful companies.”
The team supporting Acelera Partners also counts on institutions with distinctive competencies in their fields, including: technology (Microsoft and Qualcomm); finances and stock market (Banco Espírito Santo Group and Perfoma Investimentos); legal (Derraik & Menezes); and entrepreneurship and angel investment (Anjos Cariocas).
Acelera Partners starts its activities with two startups: VTX, responsible for the technical development of the Product Recognition Platform (PRP) used by some mobile apps to recognize products or other items in searches done by the camera and mobile phone images to clients as NetShoes, NetPharma, Dafiti and UOL; and Cerensa, who supports companies in the implementation, automation and management of sustainability governance guidelines (emissions of greenhouse gases, natural resources, energy and waste) for clients such as Odebrecht and CCR.
On Bes Investimento do Brasil (BESI)
BESI Brasil has been created in the second half of the year 2000 and is now controlled by BESI de Portugal (80%) and Banco Bradesco (20%). The operation policy of BESI in Brazil focuses on the activities of Investment Banking and includes financial consulting services and project finance operations structuring, typical of the sector of Infrastructure, with wide local and international experience. It also operates in the management of third party assets and management of risks, stock market, corporate finance, brokerage of securities, private equity and assets management.
On BESAF
BESAF – BES Ativos Financeiros Ltda (BESAF) is an asset manager controlled by BES Investimento do Brasil – Banco de Investimento (BESI Brasil) and ESAF – Espírito Santo Activos Financeiros (ESAF), at 50% each. Constituted in May 2004 as a Financial Assets Management Company specialized in the Brazilian market, using the international experience of its shareholders and the local presence of a highly qualified team.
On ES Tech Ventures
ES Tech Ventures, SGPS, SA is the controller of ES Ventures SCR, SA, a fund manager of Venture Capital owned by Banco Espírito Santo Group, with more than 250M € (Euros) in assets under management and investments in innovative companies in the world . In ES Ventures we support the best entrepreneurs and invest very selectively in early stage innovative technologies and business models related with some global challenges: environmental, demographic and global development.
On Microsoft Brazil
Established in 1989, Microsoft Brasil has 8 offices throughout the Country and generates local direct opportunities in the technology field for over 18 thousand companies and 424 thousand professionals. In the last 11 years, the company has invested over 193 million BRL in social projects, taking technology to schools, universities, NGOs and communities. It is one of the 110 subsidiaries of Microsoft Corporation, established in 1975, a global leader in software, services and solutions that help companies and people to reach their full potential.
On Microsoft Ventures
Microsoft Ventures is a global initiative to help entrepreneursturn their brilliant ideas into great companies. It works with startups in all periods of maturity providing the tools, resources and experience they need to succeed. The initiative has wide base and includes a community program, accelerators and seed fund. Its approach helps startups dimension their businesses, offer innovative services to the market and find new clients. Besides Brazil, Microsoft Ventures current operates in eight countries: United States, India, Israel, Germany, England, Russia, China and France.
On Qualcomm Incorporated
Qualcomm Incorporated (NASDAQ: QCOM) is a world leader in 3G, 4G and next-generation wireless technologies. Qualcomm Incorporated includes Qualcomm’s licensing business, QTL, and the vast majority of its patent portfolio. Qualcomm Technologies, Inc., a wholly-owned subsidiary of Qualcomm Incorporated, operates, along with its subsidiaries, substantially all of Qualcomm’s engineering, research and development functions, and substantially all of its products and services businesses, including its semiconductor business, QCT. For more than 25 years, Qualcomm ideas and inventions have driven the evolution of digital communications, linking people everywhere more closely to information, entertainment and each other. For more information, visit Qualcomm’swebsite,OnQ blog,TwitterandFacebookpages.
On AgeRio
AgeRio, the State Development Agency of Rio de Janeiro, was created to make Rio de Janeiro grow together with its inhabitants. The agency promotes the sustainable development of the State through financial incentives, creating jobs and income throughout Rio de Janeiro.AgeRio’s main objective is to encourage economic development in the State of Rio de Janeiro, while maintaining environmental and social responsibility, in addition to good governance practices.
Through transfers of credit lines from the Brazilian Development Bank (BNDES), from own resources or incentive funds, we invested in all sort of projects, from small to large businesses, and contribute to create jobs and income, in addition to improve quality of life to people from State of the Rio de Janeiro.The agency was established by State Decree No. 32,376, 12/12/2002. It is a mixed capital company, linked to the State Department of Economic Development, Energy, Industry and Services of the State of Rio de Janeiro, the Sedeis.
Further information
Espírito Santo | press relationsClaudia Mancini
Tel: + 55 11 3169-9312 / Espírito Santo
Maristela Silva
Tel: + 55 11 3074-7362
Microsoft | press relations
Patricia Santilli
Tel: + 55 11 3165-9586 / Microsoft
Michele Gassi
Tel: + 55 11 3905-6436