Brazil is the largest economy in Latin America with a population of over 200 million and $2.1 trillion GDP. It has the largest private equity and venture capital industry in the region. After years of economic volatility and political crises economy seems more stable recently and it reinvigorates the investments as well.
Venture capitals invested around $4 billion in startups in 2018. However, this was mostly made by foreign funds. Local venture funds raised $250 million and private equity funds raised over $3 billion.
Fintech, transport and urban mobility startups received the highest investments while agritech is another field on the rise. Nubank, iFood, Gympass and Quinto Andar. Uber rival 99 -- formerly 99Taxis-- is Brazil’s first unicorn.
Sao Paolo is the main hub for venture capital and private equity activity. Monashees+, Valor Capital Group, Redpoint Ventures, SP Ventures are the major venture capital funds and ACE is the biggest accelerator.
On the private equity side, family-owned businesses are still prevalent in Brazil. However, this is rapidly changing in recent years giving a large room to grow for institutional investors among non-public companies.
Patria Investimentos, Crescera Investimentos, Gavea Investimentos are the major private equity firms with a focus on Brazil. Global funds such as The Carlyle Group, Actis Capital, Advent International, and Warburg Pincus have a strong presence in the country.