With the increasing demand for investments in startups, it is essential for entrepreneurs to understand the differences between proprietary funds and private funds. Marilucia Silva Pertile, startup mentor and co-founder of Start Growth, explains the essential distinctions between these types of funds.
According to Marilucia, a proprietary fund, such as Start Growth’s, is composed exclusively of the partners’ own capital. “Our fund, which accumulates R$ 10 million, is fully financed by Start Growth’s partners. This allows us to make quick and efficient decisions,” she states.
On the other hand, a private fund is formed by capital from external investors, whether private or institutional. “While a proprietary fund offers more flexibility and autonomy in decision-making, a private fund is more bureaucratic and slow, as it needs to consult various investors before approving definitions,” highlights Marilucia.
The specialist also points out that proprietary funds tend to invest strategically, seeking synergy with their own operations, while private funds have purely financial objectives. “This influences the investment term. Proprietary funds may prioritize long-term partnerships, while private funds generally have a specific period with clear expectations of return,” she adds.
Currently, Start Growth’s Investment Program, based on its proprietary fund, is providing R$ 10 million for new Brazilian startups. “We want to support visionary entrepreneurs ready to take their ideas to the next level. In addition to capital, we offer ‘hands-on’ strategic support with our own method to help startups grow and scale their operations,” explains Marilucia.
Until August 15, innovative and high-potential startups in the sectors of HRtech, FINtech, EDUtech, DATAbase, MARtech, HEALTHtech, as well as early-stage startups B2B, B2C, B2E, B2B2C, or C2C can participate in the investment and acceleration call. “Just fill out the form on our website www.startgrowth.com.br and tell us about your startup,” concludes Marilucia.
