Download or read book High Growth SMEs and the Availability of Private Equity and Venture Capital in Brazil written by Leonardo L. Ribeiro and published by . This book was released on 2013 with total page 37 pages. Available in PDF, EPUB and Kindle. Book excerpt: This chapter discusses private equity and venture capital (PE/VC) in Brazil. Firstly, it is shown that PE/VC has a strong impact in the Brazilian capital markets, with PE/VC-backed companies representing close to half the amount raised by initial public offerings (IPOs) in the stock exchanges. By examining two of these deals, which involved small and medium-sized enterprises (SMEs), it is argued that PE/VC managers have acted as catalysts of the impressive growth rates experienced before these companies entered the stock markets. Indeed, PE/VC firms represent an important segment of the capital market, with specialization to invest in high-growth innovative SMEs. PE/VC managers exercise superior selection, monitoring and governance that mitigate the uncertainty and risks of investing in such companies. Despite its successes in Brazil, PE/VC is still very much restrained by the challenging local economic and institutional environment. Thus, changes in the legal and fiscal system, simplification in bureaucratic procedures, and other such improvements will most likely result in a sensible growth in the Brazilian PE/VC industry, with positive impact in the SME access to finance in Brazil. Since most countries in Latin America share similar economic and institutional traits with Brazil, the path followed by the local PE/VC industry can serve as an example for other countries to learn with its successes and failures.
Download or read book OECD Studies on SMEs and Entrepreneurship High Growth Enterprises What Governments Can Do to Make a Difference written by OECD and published by OECD Publishing. This book was released on 2010-11-03 with total page 238 pages. Available in PDF, EPUB and Kindle. Book excerpt: This report presents reports from 15 countries that provide interesting insights into the operations of and challenges faced by high-growth enterprises as well as a policy survey of 340 programmes in 24 countries.
Download or read book Toward a Venture Capital Backed Entrepreneurship Model in Brazil written by Caio Ramalho and published by . This book was released on 2013 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: It is well documented venture capital's positive impact on creation and development of highly successful innovative companies worldwide. Venture capital not only provides funding to startups and SMEs (small and medium enterprises) that usually have financing gap, especially in emerging markets, but also brings a whole package of valuable resources that reduces companies' mortality rates. Using quantitative data obtained from an empirical survey as background, this paper discusses the role of venture capital in the success of innovative startups and SMEs, and it examines if, and to what extent, venture capitalists are supporting the entrepreneurial activity in Brazil. I focused on the portfolio companies analyzes and confirmed the hypothesis that the venture capital industry has been supporting entrepreneurship in Brazil. Second, I identified an important evidence of a venture capital's positive impact on economic activity, especially the capital market. Third, it became clear that venture capital-back entrepreneurship is highly concentrated in the Southeast region. And fourth, I identified that private equity expansion is also playing a key role on that dynamics. As consequence, I conclude that the venture capital (and private equity) industry has been very important to build an enormously dynamic and strong local entrepreneurial economy. Its committed capital grew 50% per year between 2005 and 2008 to achieve US$27 billion, which invested US$11 billion, which employs 1,400 professionals (75% with post-graduate degrees) and maintains 482 portfolio companies, mostly SMEs. In addition, venture capital-backed companies represented one third of the IPOs that occurred in Brazil between 2004 and 2008 (approximately US$15 billion).
Download or read book Fostering Innovation and Entrepreneurship in Brazil Through Private Equity and Venture Capital Public Policies written by Caio Ramalho and published by . This book was released on 2014 with total page 15 pages. Available in PDF, EPUB and Kindle. Book excerpt: It is well documented the positive impact of the Private Equity and Venture Capital (“PE/VC”) industry on the creation and development of highly successful innovative companies in a few countries, mainly in the United States. PE/VC firms not only provide capital to start-ups and SMEs (small and medium enterprises) that usually have financing gap, especially in emerging markets, but also strategic resources that enable them to commercialize innovation. As consequence, Government incentive and nurture of local PE/VC industries would be expected in emerging economies due to innovation's importance to economic growth. This paper aims to identify if the Brazilian Government has supported local PE/VC industry throughout the years in order to foster favorable conditions to creating and developing successful innovative businesses. It also analyzes Brazil's main public policies towards PE/VC and if they encompass all the three stages of the PE/VC cycle - fundraising, investing and exiting.
Download or read book Startups and Innovation Ecosystems in Emerging Markets written by Moacir de Miranda Oliveira, Jr. and published by Springer. This book was released on 2019-05-04 with total page 231 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book examines the behavior of high-tech startups and important aspects of innovation ecosystems in Brazil. It discusses how the local business environment boosts startups and high-tech entrepreneurship, leading to the most successful implementation of technology parks and incubation movements in Latin America. In the first part, the chapters explore the experience of Brazilian high-tech startups with regard to innovation, funding, background of the entrepreneur and their efforts entering international markets. The second part is dedicated to innovation ecosystems and explains the role of business incubators, acceleration programs, and university entrepreneurship in the country.
Download or read book Private Equity and Venture Capital in Brazil written by Antonio Gledson De Carvalho and published by . This book was released on 2014 with total page 17 pages. Available in PDF, EPUB and Kindle. Book excerpt: This article focuses on the main idiosyncrasies of the PEVC in Brazil and its evolution from 2004 to 2009. The main idiosyncrasies are the participation of investors in the investment process, absence of leveraged buyouts, shared control and use of special rights to compensate for the absence of a controlling stake. The main changes observed are the increase of private equity investments vis-à-vis venture capital, of the efficiency of managers in the selection process, of the use of special rights to compensate for the lack of control in the portfolio companies such as veto power, of the use of arbitration panels for the resolution of conflicts, and of the participation of limited partners in the investment process.
Download or read book Private Equity and Venture Capital Investments in Brazilian Companies in the Last 30 Years written by Andrea Maria Accioly Fonseca Minardi and published by . This book was released on 2015 with total page 13 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study presents an overview of Brazilian Private Equity and Venture Capital (PE and VC) investments in portfolio companies between 1982 and 2014. Main source of information is Private Placement Memoranda. According to our data, the majority of capital was invested in PE, and most of the deals were in late stage companies (PE type). We observe that deal size has a cyclical behavior for PE and VC, and that the cycle reflects the dynamic of the economic environment and regulatory changes. PE deals have a mean MoM of 3.4. Although 15% of the deals were total losses (or close to total losses), 18% of the deals had extraordinary performance (MoM greater than 5 times invested capital). VC deals have a mean MoM of 1.5, less than half of PE's MoM. Total losses correspond to 39% of the deals, what is usual in the international industry, but only 5% of the deals were high performers. VC industry was basically sponsored by government resources before 2010, and our sample reflects this period. In an underdeveloped VC ecosystem, it is difficult to fund new rounds for early stage companies' growth, and therefore to create a high number of outperformers. We expect to have higher returns for VC in future analysis, since there has been significant evolution in the Brazilian early stage ecosystem in the last three or four years.
Download or read book Development Centre Studies Start up Latin America Promoting Innovation in the Region written by OECD and published by OECD Publishing. This book was released on 2013-09-02 with total page 210 pages. Available in PDF, EPUB and Kindle. Book excerpt: This report reviews the policy mix to support knowledge-based start-ups in six countries in Latin America, including Argentina, Brazil, Chile, Colombia, Mexico and Peru.
Download or read book Financing High Growth Firms The Role of Angel Investors written by OECD and published by OECD Publishing. This book was released on 2011-12-20 with total page 158 pages. Available in PDF, EPUB and Kindle. Book excerpt: This report covers seed stage financing for high growth companies in OECD and non-OECD countries with a primary focus on angel investment.
Download or read book Can Venture Capital and Private Equity Work for You Six Simple Steps to Guide SMEs in the Western Balkans written by Zana Bacaj and published by . This book was released on 2020 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Access to finance is ranked as one of the constraints on businesses in the Western Balkans region (Albania, Bosnia and Herzegovina, Kosovo, Montenegro, North Macedonia, and Serbia). Across the region, up to 99 percent of enterprises are small or medium-sized (SMEs). SMEs are a primary source of economic growth, innovation, and most importantly, job creation in the region. To attract funding from investors and grow their businesses successfully entrepreneurs need the necessary skills to become investment ready. However, in the Western Balkans, entrepreneurs lack investment readiness for different reasons, including lack of knowledge about the availability of external sources of finance; hesitation to surrender partial ownership and control of their business; and lack of knowledge of how to sell their ideas to potential investors. This guide is targeted at SME owners and managers of SMEs in the Western Balkans who are interested in developing their businesses and are considering whether venture capital (VC) and private equity (PE) could be an option.
Download or read book The Impact of Private Equity and Venture Capital Funds on Post IPO Operational and Financial Performance in Brazilian Invested Companies written by Bianca Sincerre and published by . This book was released on 2019 with total page 15 pages. Available in PDF, EPUB and Kindle. Book excerpt: The present article seeks to analyze the legacy and its persistence over time in terms of financing and operational policies and financial performance, of companies invested by Private Equity and Venture Capital funds (PE/VC). The PE/VC industry is characterized by the function of identifying companies with large return potentials and that grow arithmetically - due to capital constraints - to provide adequate and necessary sources of capital and experience for exponential growth. In this study, we used four measures that relate to companies' financial policies and their persistence over time: i) cash & equivalents; ii) leverage; iii) Return on Assets (ROA); and iv) sales growth. The results suggest that PE/VC invested companies imply higher levels of cash & equivalents and are associated with a lower level of leverage during the first 5 years after the IPO. In addition, companies financed by PE/VC funds show higher profitability and higher sales growth compared to non-invested companies in the short term, i.e., in the first 3 years after the IPO.
Download or read book Private Equity and Venture Capital in an Emerging Economy written by Leonardo L. Ribeiro and published by . This book was released on 2013 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This article, based on the Brazilian experience, examines how Private Equity and Venture Capital (PE/VC) adapts to an emerging economy. Our dataset is based on two extensive questionnaires answered by each of the 65 PE/VC organizations with offices in Brazil. The results reveal that a lack of infrastructure and security create investment opportunities. However, institutional idiosyncrasies represent a major barrier and force PE/VC - a U.S. investment model - to adapt by investing in different stages of business development, avoiding LBOs, taking a generalist industry approach, geographically concentrating in the financial cluster and relying on arbitration for dispute resolution.
Download or read book Brazil s State Owned Enterprises written by Thomas J. Trebat and published by Cambridge University Press. This book was released on 1983-08-31 with total page 316 pages. Available in PDF, EPUB and Kindle. Book excerpt: The economic role of the state; Origins of public enterprise in Brazil; The control of public enterprise in Brazil; Relationship with economic growth; Sources of growth and rates of return; Policies on pricing; The financing of public enterprise investment.
Download or read book OECD Studies on SMEs and Entrepreneurship Mexico Key Issues and Policies written by OECD and published by OECD Publishing. This book was released on 2013-04-29 with total page 192 pages. Available in PDF, EPUB and Kindle. Book excerpt: This publication takes stock of this progress and assesses the opportunities for further strengthening of the Mexican economy through SMEs and entrepreneurship.
Download or read book Private Equity and Venture Capital in Brazil written by Antonio Gledson de Carvalho and published by . This book was released on 2006 with total page 127 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book OECD Studies on SMEs and Entrepreneurship SME and Entrepreneurship Policy in Brazil 2020 written by OECD and published by OECD Publishing. This book was released on 2020-04-27 with total page 246 pages. Available in PDF, EPUB and Kindle. Book excerpt: This report provides policy recommendations to enhance Brazil’s SME and entrepreneurship performance, covering, among others, innovation policy, export support, access to finance, and women’s entrepreneurship.
Download or read book The developing private equity investment in brazilian market written by and published by . This book was released on 2002 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: O segmento das participações privadas vem funcionando com sucessonos países desenvolvidos. Graças à maturidade alcançada por esta modalidadede investimento nestes mercados, esses empreendimentos passaram a terrelevância também nos países em desenvolvimento. No Brasil, entretanto, osegmento de participações privadas não se desenvolveu como esperado. Assim, o objetivo deste estudo foi o de conhecer as principais razões do nãodesenvolvimento das participações privadas no mercado nacional. Pesquisasbibliográficas e de campo, apontaram cinco principiais fatores que dificultaram odesenvolvimento deste tipo de investimento no país nos últimos 15 anos. Forameles: (a) a dificuldade que o investidor encontra para sair de investimentos, principalmente devido a um mercado de capitais pequeno, poucos compradoresestratégicos e dificuldade para abertura de capital; (b) a elevada taxa de juros, que aumenta o custo de oportunidade e restringe o fomento de capital para osetor produtivo; (c) a instabilidade política e a econômica, que colocam emdúvida o destino do país e afastam investimentos de longo prazo e alto risco; (d)a ineficiência do poder judiciário, inapta para avaliar rapidamente disputas e afalta de instrumentos alternativos para fazer avaliações e tomar decisões; (e) ainformalidade da cadeia produtiva, que cria ambientes onde os concorrentes nãopagam impostos gerando desvantagens competitivas. Apesar destes problemasa perspectiva para investimentos das participações privadas no país é boa, porém, condicionada à manutenção da estabilidade econômica, crescimentoeconômico, alternativas para saída de investimentos, modernização do poderjudiciário e melhoria da legislação vigente.
