The start agreements collapse in Brazil, Brace for a challenging 2023

While interest rates are expanding international and investors are increasingly adjusted, new Brazilian companies have experienced the worst month of January since 2018 in terms of capital mobilization. According to the internal risk capital report published through the District Innovation Center, the Technological Corporations raised $ 96. 6 million last month, a drop of 84 % to the same month in 2022, where investments had reached $ 77. 8 million.

The soft point in terms of risk capital investments in Brazil last month, the construction of $ 45. 5 million guaranteed through Energytech organ of the Builing Builder Building UPD UPD. Which represented almost part of the total collected in everything The market in January.

According to the report, the number of deals closed also decreased, with 25 such deals concluded last month, as opposed to 117 in January 2022. Mergers and acquisitions (M)

Transactions in January were addressed to new less mature companies, according to the district report, and investor contributions are also lower. The studies indicated that 20 investments in the seed stadium closed in January, while 4 investments supported the new companies in the beginning with a single agreement that involves a sensible phase.

A complex scenario

Not long ago, the Brazilian risk capital area declared positive yield: in 2022, the first quarter experienced a 4% construction in investments, for a total of $ 2. 04 billion. However, in April, the Risk Capital Market in Brazil experienced a minimization of 5% to the same month of the previous year.

Gustavo Gierun, CEO and co-founder of Distrito, noted that 2023 will be “a challenging year” for startups and investors alike. According to the executive, factors contributing to this complex scenario include lower liquidity due to the global interest rate hike in 2022.

In addition, January has noticed layoffs in giant corporations and begins in a complex stage, reflecting the doubtful climate of the market, said Gierun. He added that doubts remain at this time and the way in which global interest rates will begin to facilitate, which means that reaus Treat with what is a complicated year to come in advance.

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