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The Investment Landscape in Brazil

September 15, 2015
Brazil has been at the forefront of biotech news recently, with China announcing plans to invest $250B and the recently signed Joint Communique with the U.S. government reaffirming their commitment to strengthening traditional ties, expand trade, and investment cooperation. Brazil is now one of the most attractive and promising biotech markets in the world—human health, agribusiness, raw materials and environmental—and investing in Brazil has become a new priority.

Rather than leave innovation financing solely to private investment firms, officials stepped in to support up-and-coming bioscience enterprises. In 2007, Brazil’s national development bank, BNDES, started CRIATEC, a seed capital fund made up of funds from the BNDES and the Northeast Bank of Brazil. BNDES continues to be the main instrument of long-term financing for investments in all segments of Brazilian economy.

Are you an early stage project, innovative start-up or established biotech seeking capital, strategic partnerships or a licensing deal in Latin America? There are several funding pathways to consider:

  • Reimbursable funds include loans and financing obtained from public funds. They can also be obtained from private funds like commercial banks.

  • Non-reimbursable funds include grants and donations, usually from public requests or calls for grant proposals. These funds can be obtained from public sources as well as non-profit organizations like the Bill and Melinda Gates Foundation.

  • Internally-generated funds include capital from shareholders and retained earnings on the company’s activities.

  • Funds may also be obtained from investors like angel, seed capital, venture capital and private equity. They include both public sources and private investors.

  • Corporate partnerships involve funds from cooperative agreements between companies. This may occur in different formats, including R&D partnerships and joint ventures.

BIO Latin America ConferenceNext month’s BIO Latin America conference will welcome officials from BNDES, MDIC, MCTI to discuss the favorable policies, tax incentives and grants for doing business in Brazil, as well as business leaders from the region whBIO Latin America Conferenceo will articulate the growth opportunities and challenges impacting the human health, advanced biofuel and renewable chemical sectors. To view the full program and for registration rates, click here.