Computing company Microsoft’s corporate venturing arm, Microsoft Ventures, has launched an investment fund in Brazil in partnership with corporate venturing unit Espirito Santo Ventures that aims to invest up to BRL 300m ($127.8m) in local startups.
The fund, which will be known as Brasil Aceleradora de Start-ups, will begin with an investment base of BRL 10m ($4.3m) which will expand later. Microsoft Ventures and Espirito Santo Ventures will be joined by US-based wireless telecommunications company Qualcomm and AgeRio, a publicly funded entity tasked with incentivising investment in the state of Rio de Janeiro.
Brasil Aceleradora de Start-ups will invest between BRL 120,000 ($51,000) and BRL 3m ($1.3 million) in each startup, and will target businesses operating in sectors including education, defence and cyber security, healthcare, oil and gas, energy, aerospace, agriculture and environment, finance, telecommunications, mining and information technology.
Espirito Santo Ventures is making the investment in behalf of sister company BES Investimento do Brasil, the Brazilian investment banking unit also owned by Portugal-based financial services firm Espírito Santo Financial Group. The unit’s only other Brazilian investment since its formation was in Super Bac, a sustainable biotechnology developer.