- Rio Grande do Sul state receives 1.5bn reais in loans for innovation companies, with 60% going to micro and SMEs, facilitated through Banrisul bank.
- Chile increases budget for science and technology projects and investments, with 100bn pesos allocated for the 2023-2024 period.
- Germany’s DEG invests US$20mn in a climate finance fund for mid-sized companies in Latin America.
- Brazilian startup Actis raises 1.2mn reais in a seed round led by InvesTech and TM3 Capital.
- KPMG Brasil integrates Accountfy’s financial management solutions into its portfolio to serve medium and large companies.
Financing Boost for Rio Grande do Sul
The Ministry of Science, Technology, and Innovation in Brazil recently approved 1.5 billion reais in loans for flood-battered Rio Grande do Sul state. This funding is a much-needed boost for the state, particularly for innovation companies based there. In addition to this significant amount, 65 million reais were also approved for the repairs of research centers in the region. The focus of the funds allocated to innovation firms is to support micro and small to medium-sized enterprises (SMEs), with around 60% of the total amount earmarked for these businesses. It is expected that a large portion of this financing, approximately 1 billion reais, will be channeled through the Rio Grande do Sul bank Banrisul. What sets these loans apart is that they come with interest rates lower than the market average, as stated by the government.
Chile’s Science and Tech Funding Growth
Shifting our focus to Chile, the Ministry of Science, Technology, Knowledge, and Innovation in the country has seen a significant increase in its budget dedicated to projects and investments. Minister Aisén Etcheverry announced that the budget for the 2023-2024 period has grown by 100 billion pesos, roughly equivalent to US$110 million, compared to the previous period. The ministry has been actively supporting numerous projects, including 4,100 Fondecyt projects since 2022, 900 national doctoral scholarships, and the approval of 81 Science Startup projects in 2023. Some of the notable achievements of the ministry during this period include the introduction of new AI legislation, initiatives for data center investments, projects for technology knowledge transfer to universities, and programs focused on areas like lithium, sustainability, and climate change.
DEG’s Investment in Latin American Climate Fund
Germany’s DEG has made a significant commitment by investing US$20 million in the DIC Latin American Fund IV, L.P. managed by Darby International Capital. This fund, which is sector-agnostic, aims to support mid-sized companies, with at least 40% of its investments dedicated to climate finance deals. DEG’s investment through Darby IV will provide essential long-term risk capital to predominantly family-owned businesses in Latin America, filling a financing gap often overlooked by traditional banks and financial institutions, especially in the current challenging fundraising environment.
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Actis Secures Funding with Espírito Santo Fund
In Brazil, the startup Actis, specializing in management systems for laboratories, successfully raised 1.2 million reais in a seed round led by InvesTech, with participation from TM3 Capital through the FUNSES1 fund. FUNSES is the sovereign fund of the state of Espírito Santo, with TM3 Capital serving as its manager. Actis plans to utilize the raised capital for various purposes, including product development, expanding its commercial team, and engaging new clients, particularly in industries such as pharmaceuticals, animal health, cosmetics, chemicals, food and beverages, and service provider laboratories. The resources from FUNSES are sourced from the Espírito Santo state development bank Bandes, further emphasizing the local support for innovative startups in the region.
The recent financing developments in various sectors across Latin America underscore the region’s growing focus on fostering innovation, supporting small and medium-sized enterprises, and addressing critical issues such as climate change and sustainability. The influx of investments and funding initiatives not only provide a financial boost to local businesses but also contribute to the overall economic development and technological advancement of the region.
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