Patricia Fukuda O'Donnell’s Post

The inconvenient truth about investing in Brazil In 2023, Brazil attracted a staggering $70 billion in foreign investments. But here's the catch: while opportunities abound, this market isn't for amateurs. What trends we have seen? Tech startups are booming, with fintech and agritech leading the charge. Yet, high taxation, complex regulations, and political volatility pose significant challenges and make anyone apprehensive. Despite the hurdles, Brazil's vast consumer base and rich natural resources offer unparalleled growth potential. See the examples of Apple, Adecco, Tiktok, Shoppee, Revolut, BYD among others. If Brazil's wasn't profitable they were still here? As a founder or C-Level exec, you must weigh these factors carefully however Brazil should be on your radar. Curious to learn how to turn these challenges into opportunities? Contact me to discuss more details and guide you for the right direction. #entrepreneurship #investment #technology #startups #venturecapital #ForeignInvestment

As the Brazilian VC ecosystem matures, we see more and more of the country’s founders having global ambitions. This text has some reflections on this trend, of which we at Kfund are not only fond of but have it as one our main strengths and value addition. From Brazil to the world!

𝐄𝐧𝐭𝐞𝐫𝐢𝐧𝐠 𝐭𝐡𝐞 𝐋𝐚𝐭𝐢𝐧 𝐀𝐦𝐞𝐫𝐢𝐜𝐚𝐧 𝐦𝐚𝐫𝐤𝐞𝐭 𝐭𝐡𝐫𝐨𝐮𝐠𝐡 𝐩𝐚𝐫𝐭𝐧𝐞𝐫𝐬𝐡𝐢𝐩𝐬 𝐰𝐢𝐭𝐡 𝐁𝐫𝐚𝐳𝐢𝐥𝐢𝐚𝐧 𝐬𝐭𝐚𝐫𝐭𝐮𝐩𝐬 𝐛𝐫𝐢𝐧𝐠𝐬 𝐬𝐞𝐯𝐞𝐫𝐚𝐥 𝐛𝐞𝐧𝐞𝐟𝐢𝐭𝐬 𝐭𝐨 𝐬𝐦𝐚𝐥𝐥 𝐚𝐧𝐝 𝐦𝐞𝐝𝐢𝐮𝐦-𝐬𝐢𝐳𝐞𝐝 𝐟𝐨𝐫𝐞𝐢𝐠𝐧 𝐜𝐨𝐦𝐩𝐚𝐧𝐢𝐞𝐬, 𝐬𝐮𝐜𝐡 𝐚𝐬 𝐭𝐡𝐨𝐬𝐞 𝐢𝐧 𝐭𝐡𝐞 𝐍𝐞𝐭𝐡𝐞𝐫𝐥𝐚𝐧𝐝𝐬.   Startups have become common in several sectors of the Brazilian economy and now number more than 12,000 in #Brazil. The highlight is mainly #startups that use Artificial Intelligence in their processes. Currently, 78% of innovative companies in the country already use #technologies with #algorithms and data to automate processes and provide insights. Data analysis is the main function of tools in Brazilian companies (27.4%), followed by process #automation (24.8%), #marketing optimization (18.5%) and personalization of the #user experience (16.4%). In early August, the Brazilian Ministry of Science, Technology and Innovation launched the Brazilian AI Plan, with #investments expected at US$ 4 billion over the next 4 years. 𝐋𝐞𝐚𝐫𝐧 𝐚𝐛𝐨𝐮𝐭 𝐭𝐡𝐞 𝐦𝐚𝐢𝐧 𝐛𝐞𝐧𝐞𝐟𝐢𝐭𝐬 𝐨𝐟 𝐩𝐚𝐫𝐭𝐧𝐞𝐫𝐢𝐧𝐠 𝐰𝐢𝐭𝐡 𝐨𝐫 𝐚𝐜𝐪𝐮𝐢𝐫𝐢𝐧𝐠 𝐚 𝐁𝐫𝐚𝐳𝐢𝐥𝐢𝐚𝐧 𝐬𝐭𝐚𝐫𝐭𝐮𝐩: ✅ Brazilian startups are at the forefront of #innovation in various sectors, such as #fintech, #agribusiness, #healthcare, #e-commerce and #sustainable technology. These companies bring solutions created specifically for the challenges and opportunities of the local market. ✅ In addition, startups are already adapted to consumer behavior, legislation and local peculiarities. By forming partnerships with them, companies in the #Netherlands can take advantage of this knowledge to avoid mistakes and reduce the time needed to understand the market. ✅ Brazil has implemented several reforms to facilitate the growth of startups, such as the Legal Framework for Startups. Foreign companies that enter into #partnerships with Brazilian startups can benefit from these incentives, such as simplified bureaucratic processes and tax breaks. ✅ Brazil has a population of over 212 million people, with a growing consumer market, especially in urban areas and sectors such as technology, healthcare and agribusiness. Partnerships with Brazilian startups facilitate access to this audience, especially through digital technologies. ✅ Brazil is a strategic gateway to the rest of Latin America. Establishing partnerships with Brazilian startups can facilitate regional expansion, since many of these companies already operate in other Latin American countries. 𝑺𝒐𝒖𝒓𝒄𝒆𝒔: Sebrae Startups, ACE Ventures e PitchBook, Cortex Building Intelligence and Endeavor Brasil. NBSO Network, Jisse Kranen, Nynke Schaap, Wendy Wanner, Netherlands Enterprise Agency , Caspar van Rijnbach, Lucila Almeida

With a population of over 215 million inhabitants, the 8th largest economy in the world and its 5th largest territory, it is understandable that Brazilian startups have traditionally focused on their domestic market to grow their revenues and market share.  For us at Kfund, Brazil has already become home to two of our investments and is a country we have been increasingly focused on, both for new investments and for business development for portfolio companies headquartered in other geographies. In our latest article, Gustavo S. Carvalhal Ribas, CFA and Miguel A. share their insights on the key factors and potential of the country’s technology sector. https://lnkd.in/dN9pEbfP

Discover the 3rd edition of the ranking of the top 100 tech companies in the CEE region. 📔 Key findings 👉 The combined capitalisation of the champions is more than US$106 billion. It has increased by more than 40 per cent, but still remains almost 20 per cent below 2021 valuations. This is almost 5 per cent of the GDP of CEE region. 👉 25 companies debuted (3 phoenixes, 13 dragons, 7 wolves). Most new champions are companies are Fintech (10) or SaaS (6) 👉 Poland remains the region's leader in terms of the total value of companies, with a total capitalisation of USD 40.67 billion, representing 38.03% of the total capitalisation ranking. The highest valued champions are UiPath, Wise, Allegro, Inpost and Nord Security. 👉 The ranking of the most valuable categories is dominated by e-commerce and SaaS (Software as a Service) companies, which together account for 62.80% of the total value of the top 100 technology companies in the CEE region. Companies operating in the SaaS (Software as a Service) model are as many as 28 in this year's ranking. Companies in the e-commerce and marketplace category are also numerous, with 27. 👉 From 2015 to 2022, VC investment in startups in the CEE region increased more than 13 times. In 2023, however, there was a significant drop in fund activity, with the scale of investment falling by as much as 54%. In the same period, Europe saw a 45% decline and North America a 29% decline. Many thanks to the partners who made this project possible Honorary Patronage: EBRD Strategic Partner: Arthur D. Little, XTB Partner: mInvestment Banking S.A., MCI Capital, PFR Ventures Find out more from the report - link in the comment section #DigitalChampionsCEE #PrivateEquity #VentureCapital #startups

Brazil is fast becoming a hotbed for technological innovation, attracting significant interest from international venture capitalists. The country’s vibrant startup ecosystem is flourishing, driven by a combination of forward-thinking entrepreneurs, supportive financial institutions, and a strategic location that positions Brazil as a gateway to other emerging markets. Just last month alone over $485M+ in equity capital was deployed into VC rounds raised by startups and companies in Brazil. With that being said, the global stage is slowly making its way south and São Paulo it’s becoming the upper center of tech and innovation. Three standout tech startups exemplify Brazil’s potential: 1. Nubank: Revolutionizing the banking sector, Nubank offers a seamless, user-friendly digital banking experience. It’s now one of the world’s largest independent digital banks. 2. Wildlife Studios: This gaming giant has garnered millions of users worldwide with its engaging mobile games, showcasing Brazil’s creativity and technical expertise. 3. QuintoAndar: Disrupting the real estate market, QuintoAndar simplifies renting and buying homes through its innovative platform, providing greater transparency and efficiency. S/O to financial institutions like Nubank and XP Inc., which are not only transforming the financial landscape but also providing critical support to burgeoning startups. These institutions foster a robust ecosystem where innovation can thrive. Brazil offers the perfect climate for tech growth, thanks to its dynamic market, a large and youthful population eager to embrace new technologies, and a regulatory framework that encourages innovation. Furthermore, Brazil’s strategic location makes it an ideal launchpad for expanding into other emergent markets in Latin America and beyond. With an impressive infrastructure, supportive policies, and a thriving entrepreneurial spirit, Brazil is undoubtedly a prime destination for venture capital investment. The future looks bright for tech innovation in this vibrant nation. #VentureCapital #TechStartups #BrazilInnovation #EmergingMarkets #InvestmentOpportunities

The recent report 'The Scale-Up Gap: Financial Market Constraints Holding Back Innovative Firms in The European Union' by the European Investment Bank (EIB) reveals an urgent need for more investment in scale-ups if Europe wants to compete globally in the technology sector. Currently, access to finance in Europe is significantly lower than in the US. European venture capital investment is about six times lower than that of the United States. After ten years of activity, companies mobilise 50% less capital than in Silicon Valley. As a result, many startups and scale-ups turn to foreign investors, raising concerns about intellectual property and talent leaving Europe. While these concerns are valid, Europe still lacks sufficient investment to fully support its entrepreneurs. It's important not to view foreign investment as inherently negative, as securing capital from outside, especially the US, is often crucial for the growth and success of many companies. The EIB calls for more public intervention and stronger capital market integration, a strategy to provide European startups with the support they need. This would allow Europe to retain talent, boost cutting-edge technologies and reduce dependence on external capital, strengthening its position on the global stage. I would add that collaboration between ecosystems, exchanging knowledge, best practices, and perspectives can strengthen the European ecosystem and contribute to European venture capital investment growth. https://lnkd.in/dAyRr4m3

At the Tech in Asia Conference on October 24th, Alpha JWC's General Partner, Jefrey Joe, addressed the question, “Has Indonesia Lost Its Shine for Investors?”. He shared that while capital is indeed available, the primary challenge lies in its effective deployment. He observed that investors are increasingly focusing on startups demonstrating strong traction, with a preference for innovation over sheer funding levels. Jefrey reinforced that Indonesia offers a stable investment environment with promising opportunities for startups, particularly in the digital space. Alpha JWC remains committed to supporting Indonesian founders in building sustainable companies and taking them to the global stage. Reflecting on today’s venture landscape, Jefrey noted that VCs are now prioritizing fundamentals such as unit economics, marking a shift toward sustainable growth. For early-stage companies, growth potential is highly valued, with sound unit economics regarded as crucial to long-term success. On AI, Jefrey acknowledged Indonesia’s current hardware limitations but highlighted Alpha JWC’s optimism for AI’s transformative potential. He sees AI as a key driver of the country's next wave of innovation, positioning Alpha JWC at the forefront of this evolving landscape.

#Brazil is rapidly emerging as a global innovation hub, thanks to its vibrant entrepreneurial culture and diverse market opportunities. I'm inspired by the resilience and creativity of Brazilian #entrepreneurs who are navigating challenges and turning them into #opportunities. The future looks bright for Brazil's startup ecosystem! #BrazilStartups #Innovation #Entrepreneurship #VentureCapital #EmergingMarkets #StartupEcosystem

Portuguese Exports Surge with Notable Growth Portuguese exports of goods and services reached €52.8 billion in accumulated values from January to May, compared to €51 billion during the same period in 2023, announced the Bank of Portugal. This represents an increase of €1.7 billion and a year-on-year growth rate of 3.4%. In #OportoStartUpEcossistem🚀 #news : “With a large pool of tech talent and an extensive pipeline of early-stage startups, the value of Porto's startup ecosystem has impressively grown by 53%, making it one of the fastest-growing ecosystems not only in Portugal but also in Europe.” — Marc Penzel Co-founder and President of Startup Genome Check more 👇🏻 https://lnkd.in/gYyfWtHX By AEP - Portuguese Business Association