Page 98 - InvestmentGuideBrasilEng

FINANCING INNOVATION FOSTERING A VENTURE VENTURE CAPITAL IN

IN COMPANIES BASED IN CAPITAL ECOSYSTEM IN BRAZIL

BRAZIL BRAZIL

The Brazilian Innovation Agency (FINEP) runs the
INOVAR Program, which was created to boost
In March 2013, the Government of Brazil launched contaminated water and soil, reducing FINEP is a major player in Brazil’s venture cap- the establishment of innovative companies and
INOVA EMPRESA, a major incentive to encour- deforestation of the Amazon; mobility and ital scene. help these companies gain access to capital. The
age companies to innovate in Brazil. The plan has sustainable transportation, environmental If you have an innovative idea you would like goals of the program are to develop an ecosystem
been allocated a budget of $15 billion to be invest- sanitation (BRASIL SUSTENTAVEL). to carry out in Brazil, FINEP should be among conducive to venture capital investment; build re-
ed in innovation by companies and aims to bring The INOVA EMPRESA plan consists of four fi- the first agencies you contact. Contact FINEP lationships between Brazilian and international
together various financing and other support en- nancing lines to support research, development to learn more about how to innovate in Brazil: institutions; increase Brazilian sources of capital
tities across the Brazilian government to simplify and innovation projects: www.finep.gov.br and grow the domestic investor base; and facil-
procedures for companies. This provides investors itate the creation of new local venture capital
the benefit of a single window for innovation sup- ? Grants to companies ($500 million); funds and fund managers.
port in Brazil, with FINEP being one of the key The INOVAR Program facilitated over US$1 bil-
players in this process. ? Support to foster collaboration between lion in investment in SMEs.
The plan is divided into seven priority sectors. companies and research institutes ($2.1 billion) The INOVAR Program has become a bench-
Among the activities to be encouraged in the sev- mark for other countries in Latin America for fos-
en strategic priority areas are: ? Equity investment in companies through tering venture capital.
injections of share capital ($1.1 billion);
? Agriculture and Agribusiness: inputs,
mechanization and precision farming, genetics, ? Loans for companies ($10 billion) at
traceability, planning and control of agricultural highly competitive financing rates and
production, agricultural health and animal repayment terms, including subsidized
welfare; equipment, food technology and interest rates of between 2.5% and 5% per
packaging with new features (INOVA AGRO). year, with a grace period of up to four years
and up to 12 years in which to repay.
? Energy: smart grids, hybrid
vehicles and energy-efficient vehicles; FINEP will be responsible for administering
technologies for biomass gasification. approximately 40% of the entire INOVA EMPRESA
(INOVA ENERGIA and PAISS) initiative.

? Oil and gas: technologies for the
pre-salt chain and the exploitation of
unconventional gas (INOVA PETRO).
? Health: oncology and investments in
biotechnology, medical devices (INOVA SAUDE).

? Aerospace and defense: space propulsion,
satellites and special platforms, sensors,
command and control (INOVA AERODEFESA).

? Information technology and communication:
cloud computing, mobility, and internet;
semiconductors and displays, software,
broadband and digital content (TBA).

? Environmental sustainability: combating
the effects of climate change, greenhouse
gases and pollutants, waste treatment,
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