With the growing 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, like that of Start Growth, is composed exclusively of the partners' own capital. "Our fund, which totals R$ 10 million, is fully financed by the partners of Start Growth. This allows us to make quick and efficient decisions," he 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 decisions, a private fund is more bureaucratic and slow, as it needs to consult several investors before approving decisions," 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 timeline. Proprietary funds may prioritize long-term partnerships, while private funds typically have a specific period with clear return expectations," he adds.
Currently, the Start Growth 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. Beyond capital, we offer hands-on strategic support with our own method to help startups develop and scale their operations," explains Marilucia.
Until August 15th, innovative and high-potential startups in the HRtech, FINtech, EDUtech, DATAbase, MARtech, HEALTHtech sectors, as well as B2B, B2C, B2E, B2B2C, or C2C startups in the early stages, 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.
