With the pandemic, angel investment volume fell 20% in 2020 compared to the previous year (2019), returning to 2016 levels. Last year, $856 million was invested by Brazilian angel investors. The number of investors saw a slight decrease of 15%, and today there are 6,956 angel investors in Brazil. The data are part of a survey conducted by Anjos do Brasil (www.anjosdobrasil.net), a non-profit organization that encourages angel investment and supports innovative entrepreneurship in the country.
Angel investing is done by both active investors who want startup Investing by participating in organized angel investors’ groups as well as by passive investors who are sought out by entrepreneurs and invest opportunistically. The segmented analysis among these investor profiles shows that active investors showed an increase in the amount of applied investments. On the other hand, there was a significant reduction in passive investors, which was not compensated in the final result. This underscores the importance of incentive actions to convert passive investors into assets.
The survey also raised the outlook for investors for 2021, who expect 15% growth, although positive and for the recovery, the expectation is still insufficient for demand. startup.
Casio Spina, President and Founder of Anjos do Brasil, commented: “Despite the prospect of recovery for 2021, it is unfortunately insufficient to support volume growth. startup who are coming to the fore. investment in startup It needs encouragement and support to grow and reach its full potential, we estimate to be worth $12 billion annually. Noting that the legal framework for startups does not bring the necessary advances, it is necessary that Congress take up the matter and allow equalization of tax treatment between investment in startups and incentive investment; In the short term we hope that Art. The veto of 7 which allows compensation for losses with minimal profit shall be reversed.”
As the executive points out, today, investment in Brazil accounts for only 0.7% of investment volume. startup In the United States, that total is approximately $25.3 billion annually. Despite our growth in angel investment volume over the past decade, we are still well below our potential. Given the ratio of countries’ GDP is about 10x, angel investments in Brazil must be at least R$12 billion. For Brazil to reach its full potential, it is necessary to create public policies to encourage investment in startups, as is the case in countries with more dynamic ecosystems.
Profile – The survey includes a survey of race or color of first-time respondents, indicating that the majority of Brazilian angel investors are white (81%), 14% declare themselves to be black, brown or indigenous and 1% yellow. . This data showing the participation of only 14% of women in the universe of investors indicates slow growth in the Brazilian ecosystem.
María Rita Spina Bueno, Executive Director of Anjos do Brasil, says: “Diversity is a necessity for innovation, it is essential that all people engage in actions to increase the participation of the most diverse profiles in the universe. startup and investment. Individual and collective action has to be in the sense of encouraging diversity.”