The month of March was the talk of the town. And it's not just because it's Women's Month. On the 5th, the Committee on Economic Affairs (CAE) approved the complementary bill (PLP).252/2023, which creates a new investment model to encourage the growth of startups.
When it comes to startups and development, the news is good. Today, in Brazil, there are about 20,000 startups in operation, and the outlook is that only 2,000 will survive. According to the Brazilian Service of Support for Micro and Small Enterprises (Sebrae), 9 out of 10 companies of this type close their activities within the first years of operation.
It's no secret that the Brazilian entrepreneurial scene is a true arena of lions, and without incentives, these statistics won't change anytime soon. Therefore, even walking at a snail's pace, we need to celebrate each achievement, and this bill is certainly one of them.Brazil needs new policies to leverage the entrepreneurial potential we have.
The project approved by the CAE changes the Legal Framework for Startups (Complementary Law 182, of 2021to create the Convertible Investment Agreement into Share Capital (CICC), inspired by the Simple Agreement for Future Equity (Safe), a standard contract model used in the international market. The main advantage is that the invested amounts do not integrate the share capital applied to the startup. This means that the person who invests is exempt from operational risks, such as labor and tax debts.
But what is the difference between the CICC and the convertible loan by equity participation, the most commonly used method today? Well, due to its debt nature, the convertible loan establishes a deadline for the return of the resources provided by the investor and allows the conversion of the amounts into equity participation in the company. The new investment model proposed by the law does not have this characteristic.
The PL is authored by Senator Carlos Portinho (PL-RJ) and now proceeds to the Senate Plenary in an urgent regime. Subsequently, it will be forwarded for analysis by the Chamber of Deputies, and then it will be sent for the President of the Republic's sanction. According to Portinho, the new model provides greater legal certainty and tax transparency for both startups and investors. With this, the proposal would create a favorable environment for the investment market in startup companies, especially for those in the early stages.
These changes open new paths and opportunities for growth and can trigger a positive domino effect in the ecosystem (we hope). By making the investment process easier and more accessible and transparent, we attract more individuals to become angel investors. Currently, in the country, this number is still very low: there are only 7,963.according to research carried out by Anjos do Brasil, and only 10% are women.
Looking at this market and strengthening its potential means understanding that it is a fundamental sector for the development and productivity of the entire modern economy.
