The global venture capital market – investments in early-stage companies, small or medium-sized, generally startups – experience a moment of expansion in the world. And Brazil stands out, leading this market in Latin America. Behind the millions of dollars, euros or reais involved in the fundraising rounds, there are stories of socioeconomic impact generated by such investments.
To the numbers, to get a sense of the scenario. According to the Venture Pulse 2024, KPMG organization survey, in the second quarter of this year, the global venture capital market totaled US$ 94,3 billion in investments, with the largest increase compared to the previous five quarters. In Brazil, the amount reached US$ 816,8 million, the largest since the first quarter of 2022.
According to the survey, startups focused on artificial intelligence, cyber defense and security lead in receiving investments. But data from other sources show more segments standing out as well – especially those that bring social impact. The Govtech Fund, managed by KPTL and Cedro Capital, is one of those who have stood out
The fund is aimed at startups with the potential to transform the provision of public services offered by the government. Resources are invested in ventures that offer technology for areas such as health (management of hospital resources, telemedicine, education (educational processes, access to quality education and public safety (monitoring and data analysis tools), among others.
"The Govtech Fund was created with a clear mission: to invest in technology companies that develop solutions to solve public issues", facing infrastructure bottlenecks and bureaucracy. In a country like Brazil, where millions of citizens face daily difficulties in accessing basic services, the role of these startups goes beyond financial return. They represent a hope that public administration will become more agile, efficient and transparent, the managers KPTL and Cedro Capital discuss.
The reports from the selected entrepreneurs highlight the social impact. One of the partners and founders of Colab, Gustavo Maia, explain that the action of the Govtech Fund made the company improve its strategic vision, "helping us refine our solutions and better understand the needs of the public sector".
Colab is the startup responsible for creating the digital version of the participatory budget, today in use by the government of Piauí and by several municipalities in Brazil. "With the support of the fund", says the entrepreneur, we managed to expand our operations to more cities, and this represents a great victory for the citizen who can participate in a more active and collaborative way in public management.
A Prosas, a platform for monitoring and selecting initiatives to promote social actions, how to edit cultural incentive laws, is another startup awarded with the Govtech venture capital fund. The co-founder of the company, Thiago Alvim, define as "decisive" the contributions received for the improvement of management tools for notices and partnerships for the third sector.
More than the investment, the fund provided us with privileged access to networks and knowledge about the public sector, accelerating the social transformation we aspire to, declare.
Cases like these indicate the convergence of the venture capital market with two major important movements: ESG (environmental, social and governance) and the Sustainable Development Goals (SDGs). This is because they are contributions granted subject to policies promoting socio-environmental and governance criteria, directly aligned with one or more SDGs, that range from eradicating poverty to global action against climate change.
For the managers of the Govtech Fund, these factors should be considered as much or more than the invested amounts and those with calculated returns. Venture capital can, yes, create a positive impact on people's lives, promoting not only financial growth, but also a revolution in the way public services serve the citizen. Ultimately, this is one of the most enduring ways to measure the true value of venture capital in the country: not just in figures, but in concrete transformations for social well-being and sustainable development of Brazil, underline
