Brazilian startups bet on AI and become targets for buyers.

The Brazilian market for mergers and acquisitions (M&A) continues to mature and increasingly integrated into the Artificial Intelligence (AI) ecosystem. More than half of Brazilian startups use the technology and 31% develop AI-based products, according to the Unlocking the Potential of AI in Brazil survey, conducted by AWS. The study also shows that 78% of the companies interviewed believe that the use of new technologies may be the key turning point in business in the next five years. 

The survey brings yet another relevant point: while 31% of companies develop new AI-based products, 37% already direct efforts to attract talent in technological development, expanding the focus beyond the application of artificial intelligence. 

Marcel Malczewski, CEO of Quartz Capital, notes that startups that advance operational efficiency, structure their decision-making based on data and incorporate automation and technological customization generate a more competitive positioning and, consequently, greater attention from investors.“Mainly in a more selective capital environment, but M&A movements only generate value when there is efficient allocation of” capital, Malczewski said during a lecture on M&A strategies held in Curitiba on Tuesday (2).

In the third quarter, Brazil registered 252 operations in the technology sector, according to the balance sheet released by TTR Data.In the period, 1,303 M&A operations were totaled in the country.

M&A keeps growth timid in 2025

The most recent report by TTR Data, in October, shows a slight growth in the mergers and acquisitions market in Brazil compared to the same period with 2024. In the first 10 months of the year, 1,475 were recorded, a growth of 5% in the number of transactions and 2% in the capital mobilization compared to the same period last year. According to the report, the volume generated by transactions in Brazil in this period was R$ 218 billion.

According to Gustavo Budziak, managing partner of Quartz Capital, one of the main factors that frightens the investor when making an M&A operation is the high interest rate. In the last three years the Selic rate hit historical high records with a variation of 10.2% to 15%, maintaining the maximum in the last six months, according to data from the Central Bank (BC).“The maintenance of the Selic rate makes the investor afraid and he ends up choosing to leave the stopped money to risk in a M&A movement, which is a risk movement of”, Budzia pointed out.

However, according to the expert, investors have sought alternatives to M&A operations mainly SaaS and fintechs.“The reduction in the valuations of these companies has made them more attractive for M&A operations, but we also noticed a change within companies that are not only seeking others to buy, but creating their own CVCs (Corporate Venture Capital) in search of new technologies to insert in their products”.