Investments in private equity and venture capital exceed R$28 billion in the first half of the year

This is an automatic translation of the KPMG press release

Investments by private equity and venture capital funds in Brazilian companies exceeded 28.1 billion rand in the first half of this year, a value 13.8% higher than the 24.7 billion rand invested during of the same period of 2021. Growth was particularly driven by the resources applied between the months of April, May and June of this year. The data comes from a quarterly survey conducted by KPMG and the Brazilian Association of Private Equity and Venture Capital (ABVCAP).

Between April and June, investments in Private Equity reached R$11.3 billion, an increase of 117.3% compared to the first quarter, with a focus on investments in the financial sector. In venture capital, volume was R5.2 billion, down 18.8% from the first three months of this year.

“Despite all the adversity, Brazil continues to be an extremely relevant destination for these investments, as evidenced by the results for the semester. In addition, it should be noted that the increase in invested resources is directly related to the strengthening of the business environment and, consequently, the creation of more opportunities in the domestic market,” says the main partner of Private Equity and Venture Capital at KPMG in Brazil.”, Roberto Haddad.

Technology companies related to the finance and insurance sectors ( fintechs and insurtechs ) received 21% of venture capital fund investments in the first quarter of the year. Retailtechs startups in the retail sector, represented 12% of resources, while health technology the companies of health, they received 11% of the contributions.

“Although the more difficult business environment for Tech companies, the uncertainties related to the war and the election period may influence the negotiations, Brazil continues to show great potential for expansion,” said the president of the company. ‘ABVCAP, Piero Minardi. “The balance between the consolidated values ​​in Private Equity and Venture Capital demonstrates that in both cases investors are focused on long-term growth and, therefore, are holding their breath to preserve resources and assess risk” , highlighted .

Half-yearly investments

In billions of R

1st Semester 2022

1st Semester 2021

1st Semester 2020

FOOT

16.5

2.3

4.5

you

11.6

22.4

5.7

Total

28.1

24.7

10.2

quarterly investments

In billions of R

Q1 2020

2nd quarter 2020

Q1 2021

2nd quarter 2021

Q1 2022

Q2 2022

FOOT

3.3

1.2

1.9

0.4

5.2

11.3

you

2.4

3.3

8.8

13.6

6.4

5.2

Total

5.7

4.5

10.7

14.0

11.6

16.5

2nd quarter 22 — PE&VC sectors with the highest number of beneficiary companies

sectors

% companies

Financial services

18%

YOU

14%

Detail

11%

2nd Quarter 22 — Venture Capital Sectors with the Most Invested Companies

sectors

% companies

FinTech & InsurTech

21%

RetailTech

12%

HealthTech

11%

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