Recent Acquisitions by Google

The search giant Google has made multiple acquisitions in the past year. During the first quarter alone, they spent nearly $300 million on eight acquisitions according to the paperwork filed with the government. Google’s reasoning behind the numerous acquisitions is simple to “generally enhance the breadth and depth of their expertise in engineering and other functional areas, their technologies and product offerings.” The shocker is not so much that they made so many acquisitions in the first quarter of 2013, but that they spent so much doing it. Of course the largest fear is that the search giant might not be able to develop the acquired businesses or technologies further which is the goal of the venture capitalist.

Venture Capital Market in Germany

German Flag

In the United States venture capital companies such as Effi Enterprises have done very well. They have managed to offer investment funds to small or emerging businesses to help each reach a level of success. Efraim Landa understands from the perspective of an entrepreneur and a venture capitalist that there are other regions around the world where the VC firm has not had as much success. This is partly due to the economic picture which has not been conducive for helping the venture capital industry develop and mature.  For regions such as Germany, there has not been the longevity of the venture capital market to allow it to fully develop so even successes are not as prominent as in other parts of the world. However, the economic climate and the venture capital market are improving at a noticeable rate.

Venture Capital Market in Brazil

Brazil Flag

When entrepreneurs have innovative ideas for starting a company, they seek funding to transform their vision a reality.  Venture capital firms like Effi Enterprises are here to support that entrepreneur in finding the necessary funding to create a successful enterprise.  They have the expertise and experience needed to propel an early-stage business into a public company in ten years or less.  Venture capital firms are always watching the global markets, looking for emerging markets with extreme potential for investment opportunities.  With one of the world’s largest economies and a venture capital market that is finally beginning to advance considerably, Brazil is a place with potential for venture capital firms all over the world.

History of VC Market in Brazil

Activity in the venture capital market in Brazil began in the 1980s, but the high interest rates and the high rate of inflation discouraged venture capital endeavors, especially from international investors.  In the 1990s, the situation began to improve as the Brazilian government introduced the Real Plan with the aim of reducing this inflation and lowering interest rates.  There was also a rise in the privatization of public enterprises.  In 2000, the Brazilian Venture Capital and Private Equity Association was created allowing for real growth in the venture capital industry there.  Throughout Brazil’s recent history, foreign venture capital firms have not had a strong presence in the market, but in recent years the business environment has become more and more conducive to entrepreneurs and profitable investment opportunity and international involvement from venture capital firms is on the rise.

Current State of VC Market in Brazil

The current state of the venture capital market in Brazil is encouraging for international VC firms as the environment there becomes more open to opportunity for emerging business enterprises to excel.  In 2004, there was $6 billion raised from venture capital investors and by 2008, there was $28 billion, making it the second most attractive choice for private equity investments in 2009.  With abundant natural resources, stable government policies, and an advanced banking sector, the economy is among one of the largest in the world.  Brazil has a financial system that has largely escaped the global financial crisis and a legal system that respects property rights. High-tech industries such as aerospace, agribusiness, energy, information technology, and telecommunications are being developed.  There are more than 1.7 million IT professionals and a new IBM research center.  The government is strongly supporting investments in innovative programs in these primary industries and claims that today, 15 out of every 100 residents are involved in a startup.  The potential growth and business endeavors are there and now just need the support of the international venture capital community to really thrive.

Future of VC Market in Brazil

With a history of slow growth in the venture capital industry of Brazil, the focus is now on the future.  In the past, regulations and high inflations have made the venture capital market there unappealing to outside investors, but slowly that is all changing and advancement is happening.  With the upcoming hosting of the 2014 World Cup and the 2016 Summer Olympics, development is rampant throughout Brazil and opportunities for investors to get involved will grow exponentially.  There may be a few challenges to overcome, but the potential for success is high and the environment gets riper each year. Venture capital firms are constantly looking for international opportunities for investment and with a recent influx of young companies and a stable, growing economy, the Brazilian venture capital market is now a place of interest for VC firms all around the world.