With the growing demand for investment in startups, it's crucial for entrepreneurs to understand the differences between private equity and venture capital funds. Marilucia Silva Pertile, a startup mentor and co-founder of Start Growth, explains the key distinctions between these types of funds.
According to Marilucia, a private equity fund, like Start Growth, is composed exclusively of equity capital from its partners. "Our fund, which has accumulated R$10 million, is entirely financed by the partners of Start Growth. This allows us to make quick and efficient decisions," she says.
Conversely, a private fund is formed by capital from external investors, whether private or institutional. "While a proprietary fund offers greater flexibility and autonomy in decision-making, a private fund is more bureaucratic and slower, as it needs to consult numerous investors before approving definitions," highlights Marilucia.
The specialist also points out that private equity funds tend to invest strategically, seeking synergy with their own operations, while private funds have purely financial objectives. "This influences the investment timeframe. Private equity funds may prioritize long-term partnerships, while private funds typically have a specific timeframe with clear return expectations," she adds.
Currently, the Start Growth Investment Program, based on its own 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. Besides capital, we offer hands-on strategic support with our own methodology 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, and HEALTHtech sectors, as well as early-stage B2B, B2C, B2E, B2B2C, or C2C startups, can participate in the investment and acceleration program. "Simply fill out the form on our website www.startgrowth.com.br and tell us about your startup," concludes Marilucia.
