A Venture Perspective of Different Investor Effects in the Brazilian VC Market

Abstract

Objective: Venture capital has garnered global interest, attracting policymakers, investors, and entrepreneurs. However, its implementation in emerging nations, particularly in the challenging seed-stage segment, requires adaptive strategies from investors. This article investigates whether these adaptations lead to performance differences among various VC investor types. Methods: We examine the impact of different investor types on the performance of seed-stage ventures in Brazil, comparing our findings to existing literature on the United States. Analyzing investments in the Brazilian seed-stage VC market from 2000 to September 2022, we evaluate outcomes for ventures supported by IVCs, CVCs, Angels, and Accelerators. Results: The results reveal significant disparities in the performance of these entities in Brazil compared to the United States. Conclusions: We conclude that these differences likely stem from unique Brazilian market dynamics that have shaped investor profiles and operational approaches distinct from those in developed nations.

Keywords

• entrepreneurship finance
• venture capital
• corporate venture capital
• angels
• accelerator