Being one in Brazil is not simple. Although the innovation environment is dynamic, with 3 out of 4 investors receiving opportunities with monthly or higher frequency, more than 59% of potential investors report difficulties in accessing good opportunities, showing a connection failure between them and available capital. “Brazil still invests much less in startups than it would be compatible with the size of our economy,” says Cassio Spina, founder and president of Anjos do Brasil, which outlined the unprecedented panorama about profiles, motivations and challenges faced by startup investors together with Sebrae.
The data were revealed in the panel of the Startup Summit, Event that brings together participants of the ecosystem in Florianópolis between August 27 and 29.
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Also according to the survey, the main challenges for the expansion of in Brazil are economic uncertainty and high risk (67.32%), difficulty finding good opportunities (33.17%), and lack of tax incentives (41.46%). Taxation on capital gain, bureaucracy and legal insecurity also appear with prominence. In addition, 92% of investors report difficulty in locating qualified startups, pointing out structural failures on companies access and maturity.
For spina, the way to change this scenario involves the adoption of policies to encourage angel investment, as they already do several countries. ” These incentives do not mean loss of revenue, but gain, as they strengthen innovative entrepreneurship, increase competitiveness and generate economic and social development, ”he argues.
Understanding the behavior of investors is a strategic step in strengthening the innovation ecosystem in the country. This is the conclusion of Décio Lima, president of Sebrae. “Based on these data, it is possible to guide public policies, training programs and more effective connection strategies between startups and investors,” he says.
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Who are the angel investors in Brazil
Brazilian angels are mostly men (81.5%) aged 41 to 50 years (32.4%), with a certain experience in entrepreneurship. Among the main motivations for investments are financial return (40.84%), impact/legacy (32.42%) and mentoring/learning (26.74%). This information shows that angel investment in Brazil is driven by experienced professionals in search of portfolio and impact diversification.
In the portfolio of this type of investor predominates fixed income, but there are also shares (direct and via funds), real estate funds and private pension. What’s more, about 49% of investors apply less than $ 250,000 in startups, while 14.5% reports over $ 1 million.
The number of startups per portfolio also reflects a certain level of diversification: 59.3% invest in up to five businesses, while 12.7% exceed 20 startups, indicating a nearby follow -up strategy and in -depth analysis. The contributions are mainly directed to the SEED (53.3%) and Pre-Seed (40.6%) stages, considered critical moments for the leverage and scalability of startups.
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Almost half of investors (47%) do not yet know how to evaluate the return on investment (ROI), which may indicate recent entry into this market or difficult measurement in the short term. Among those who have already measured, 40.7% reported positive returns, with 6.8% reaching more than 5 times the invested capital. These results are more present among individual investors with diverse portfolios.
And finally, those who usually carry checks are information technology companies (27.3%), management and consulting (22.2%), capital and investments (17.1%), professional services (13.33%) and finance (12.70%). There is also a highlight for agribusiness (10.16%) and health and well-being (9.52%).
How to have more angels
For Décio Lima, from Sebrae, “it is essential to create tax incentives that attract more investors willing to foster the new economy,” he says. And he also states that angel investment needs to stop being an exception and become a rule in a country with a vocation for innovation. “The result will be more opportunities, inclusion, job creation and income.”
