Fundo de Investimento em Participações comes to diversify the way the angel investment association operates, with more options for members and new startups
With an average ticket of R＄ 1.5 million and potentially reaching R＄ 5 million, the expectation is to select up to 10 enterprises from different sectors to receive contributions from the fund
O BR Angels, national angel investment association, and the Manager ID, an independent house in the area of management and fiduciary administration of resources, announce the creation of a FIP (Fund for Investment in Participations) of R＄ 15 million, intended for investment in Brazilian startups.
The administration and management of the FIP are the exclusive responsibility of ID, which offers the association the possibility of using this vehicle in conjunction with the traditional angel investment model. The main objective of the fund is to diversify the way BR Angels operates and offer more options to members and new portfolio companies.
Around 10 startups are expected to receive contributions from the fund. As has been implemented by BR Angels in recent years, the average ticket will be R＄ 1.5 million, but there is the possibility of reaching R＄ 5 million, if the agreement makes sense for both parties. “Our objective is for the R＄ 15 million to be allocated to various segments, prioritizing businesses focused on ESG, agro, energy, finance, health, technology and AI”, explains Orlando Cintra, founder and CEO of BR Angels.
BR Angels carries out an intense selection of ventures that fit with its thesis, which are, primarily, those in which the association can add value with its Smart Money, opening doors and supporting the business's pains and opportunities. While continuing to value quality over quantity, the network's new goal is to also search for real economy startups that are directly linked to the production, circulation and consumption of goods and services in society.
Professionalization of the way of investing in startups
For BR Angels, this movement is a big step that represents the professionalization of investments in the national innovation ecosystem and shows how the association is increasingly consolidating itself in the search for sophistication for its members and investees.
“The motivations for forming an FIP are various, but mainly we want to professionalize the way of investing in startups and promote a less bureaucratic way for angel investors. There is also greater security when the contract is converted from a loan to equity, which makes the entire operation easier”, comments Cintra.
“In addition, there is a clear preference for startups and professional co-investors, such as VCs, to have angel investors operating through a professional vehicle. We are an angel investment association and not a manager or fund, so we are very excited about this partnership with ID Gestora, which was fundamental in making this opportunity possible”, he adds.
“This strategic partnership generates a lot of value for FIP shareholders, by incorporating BR Angels' expertise and tradition in the Venture Capital segment into a sophisticated investment vehicle, safe in regulatory terms and tax efficient, as is the case with FIP Smart Angels ”, points out Gustavo Biava, founding partner and investment director at ID Gestora.
In addition to the creation of the FIP, BR Angels also recently announced the investment, with a ticket exceeding R＄ 3 million, in two new startups. Thus, the angel investment group created in 2019 and which today has more than 270 members reached the milestone of 31 startups in the portfolio.
About BR Angels:
Formed in 2019, BR Angels is a national angel investment association made up of more than 270 CEOs and senior executives from important companies that, in addition to financial capital, deliver intellectual capital, valuing, above all, the concept of Smart Money.Initially, BR Angels' focus is on businesses that operate in the B2B, B2B2C and B2C segments, within which Smart Money can be widely used through mentoring from associated C-Levels, who have varied profiles in senior management, human resources, finance , sales, marketing, technology, among other areas.
In this way, the group hopes to support solid entrepreneurship initiatives and contribute effectively to the economic development of Brazil and Latin America.
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