Frequently asked questions
Can any company be a member of ABVCAP?
No. To become a member, the institution must have proven track record in the alternative asset sector, including venture capital and private equity, real estate, infrastructure, special situations, among others, in addition to meeting the statutory requirements and receiving two recommendations from ABVCAP managing members.
See Members/Become a Member for the step-by-step instructions to follow to submit your membership application.
What are the costs and benefits of becoming a member?
All information about the ABVCAP membership process can be found in the Members/Become a Member menu. The greatest benefit is undoubtedly having a strong association with relevant stakeholders, representing the industry and recognized by authorities, regulators, and self-regulators, with full powers as a spokesperson for the demands of its constituents. This enables the achievement of public policies favorable to the ecosystem, an adequate legal framework, and legal security for long-term investments. There are, however, several other benefits, such as participation in committees, panels at events promoted by ABVCAP, institutional exposure in the Members Directory, substantial discounts on events, among others, which are listed in the Become a Member section of this website.
How does ABVCAP work?
ABVCAP is a non-profit institution focused on the development, stimulation, and propagation of long-term investments in the real sector of the Brazilian economy, through investment vehicles and capitalization of companies and business and infrastructure projects in Brazil.
The Association advocates for the interests of industry members alongside public and private institutions, both domestic and foreign, seeking increasingly favorable public policies to foster these investments in the country. This work is carried out in collaboration with regulators and through strategic partnerships and alignment with public policies promoting innovation, science and technology, and the national productive development policy.
In the development field, ABVCAP conducts training activities, workshops, outreach events, networking, and information on the culture of venture capital and the workings of the alternative assets industry, working with strategic investors, technology parks, incubators, universities, and other entrepreneurship hubs. It also promotes qualified networking, seeking to connect investors, managers, and entrepreneurs to leverage investments.
On the other hand, ABVCAP works hard to attract capital from new national and international investors, holding roadshows, business rounds, and fund showcases.
How should I prepare to trade with a private equity fund?
First, it's important to understand how equity funds work. The investment made by these funds is not a credit transaction, but rather a contribution of resources in exchange for an equity stake in the companies. There is no requirement for financial compensation from the entrepreneur, such as letters of guarantee, investment reports, or insurance.
Before an investment in a company is finalized, there's a selection and evaluation process by a qualified team of fund analysts, along with due diligence, asset evaluation and investment pricing, and shareholder agreements—in other words, a professional analysis of the business opportunity. Funds seek companies with high growth potential, innovative characteristics, a competent business team, a well-founded growth plan, and transparent dealings with investors. All this, in a market with strong development prospects.
Therefore, to go through the entire selection and evaluation process, the entrepreneur must have a legalized business, documented processes, up-to-date balance sheets and accounting, and a growth plan, with a clear definition of their resource needs, to reach a new level of growth, as well as the allocation and quantification of where the resources contributed by the investor will be applied.
Access ABVCAP's basic guides to better understand the process and ensure you're well-advised throughout any negotiation process.
ABVCAP Guides
What is VC?
Legal documents
Due diligence
How much is your business worth?
I need an investor for my business. How do I find a fund willing to invest in my company?
There are numerous company selections or notices focused on specific sectors or stages, challenges, competitions, or investment forums. If the entrepreneur is prepared, these forums are an excellent opportunity, as they bring together a variety of investors seeking good opportunities.
If the entrepreneur prefers to directly approach a fund to present their business, it's important to be well-informed about the fund's profile. Each fund has an investment thesis. Some only invest in specific sectors, in companies with pre-established revenue levels and at specific stages. A good approach is to seek information about the fund's profile, either through news reports in the media or in the ABVCAP member directory. Also, keep up with the news and see which funds are in the investment phase. There's no point in looking for a fund that's in the divestment phase of its portfolio.
It's crucial to be wary of promises of easy and guaranteed investment. Investments made by private equity and venture capital funds are selective and demanding. If there are promises of guaranteed investment, be wary, do your research, ask for references from companies that have already invested, check for additional services and costs, and seek legal advice before signing any documents. Also, consult the Brazilian Securities and Exchange Commission (CVM). https://www.gov.br/cvm/pt-br to verify whether the institution is accredited as a securities manager in that authority, which is the regulatory body for investment funds.
I'm an entrepreneur. How can ABVCAP help me present my company to potential investors?
ABVCAP traditionally holds three events per year – the Venture Capital Conference, the Sustainable Investment Forum and the Annual Congress.
These are the best networking opportunities for finding investors. Remember, however, that you need to be prepared and have your pitch deck ready to attract subsequent conversations about your business.
There are also themed meetings and breakfasts, events hosted by our partners, and ABVCAP training sessions. Follow our Events section or sign up for our newsletter to stay informed about these opportunities.
What is private equity and venture capital?
The sector has a comprehensive configuration and is defined by the activity of managing financial investments in mainly privately held companies, at typical stages of their trajectory.
Venture capital is related to early-stage ventures, while private equity is related to more mature companies undergoing restructuring, consolidation, and/or expansion. The essence of this investment is to share business risks, establishing a joint effort between managers and investors to add value to the invested company. Investments can be directed to any sector with a prospect for significant growth and long-term profitability, depending on the investment focus defined by the investors or funds.
Watch our videos:
What is Private Equity?
What is Venture Capital?
Where can I find data on the private equity and venture capital sector?
The Content and Information section of PE and VC in Brazil provides data and updates on the activities of the long-term investment industry, including investments, divestments, most attractive sectors, fund returns, and more. It's important to emphasize, however, that ABVCAP only publishes consolidated sector data or information previously made public by the institutions themselves, whether through the media, press releases, or interviews.
Some studies may be presented in summary form and are available in full exclusively to our members.