Brazil’s start-up investment hit a new high

Risa Silva, a resident of Sao Paulo, Brazil, needs to go to the hospital for regular review because of basic diseases. During the period of epidemic prevention and control, Silva can realize remote consultation at home through a mobile phone application called “health connection”. In 2020, about 2 million Brazilians received health consultation through the platform. Health Connect is an application developed by a Brazilian start-up focusing on telemedicine. “Last July, the company raised 40 million reais (about 5.5 reais for one dollar) in a new round of financing.” Thanks to this, the company has expanded its medical and technical staff and its business volume is growing exponentially, said gyermo weizette, executive director of the company. Start ups created by new technologies have shown great vitality in Brazil. According to Distrito, a Brazilian platform for entrepreneurship, innovation and technology, Brazilian start-ups will raise 18.6 billion reais in 2020, a 17% year-on-year increase, a record high. A joint survey shows that the number of investors in Brazilian start-ups will grow by 64% year-on-year in 2020. Renato Valente, an investment fund manager, said the development of digital business has helped investors regain confidence. According to the analysis, the reduction of interest rate and the positive expectation of government policies have stimulated the growth of Brazil’s investment in the start-up field. In order to alleviate the impact of the epidemic on the economy, the Central Bank of Brazil cut interest rates for five consecutive times in 2020, reducing the benchmark interest rate to 2%, a new low since 1999. Bruno Decker, President of Brazilian start-up platform Jupiter, said lower bank interest rates reduced financing costs and stimulated investors’ willingness to make venture capital. In October 2020, Brazil’s presidential office submitted to the Congress the “legal framework for start ups” bill, which aims to encourage the development of start-ups. According to the bill, the government will substantially reduce the administrative approval procedures for start-ups to create a more favorable environment for them. For example, a start-up company with a net asset of no more than R $78 million and a shareholder of no more than 30 does not need to publish its balance sheet in the newspaper, but only need to publish it online; angel investors can not use their capital to become partners of the start-up company, and they do not have the management authority of the start-up company; employees of the start-up company have the right to obtain the company’s stock options, and their rights and interests are not affected by the company’s debts At present, the legal framework for start-ups has been passed by the house of Representatives and submitted to the Senate for deliberation. Amanda Caroline, a company law lawyer, pointed out that the bill takes into account the interests of investors, start-ups and employees. Once implemented, it will attract more investors. “During the epidemic prevention and control period, people are more aware of the importance of digital transformation,” said venture capitalist Pedro metzel. The outlook for investment in start-ups this year remains optimistic. ” He believes that the accelerated growth of start-ups is expected to promote the formation of a virtuous circle of enterprise innovation. (Rio de Janeiro, January 24) – People’s daily (January 25, 2021, 17th Edition);

(editor in charge: Ma Changyan)

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