By Paulo Deitos, co-founder of CapTable
According to Bill Gross, timing is the biggest reason for a startup's success. Knowing when the timing is right means understanding when the consumer is ready to support an idea and, also, when the market presents an opening for a particular solution proposed by a startup. CapTable presents elements that demonstrate a favorable timing for its growth and that justify its existence.
In Brazil, there is no pervasive investment culture in the startup space — a fact that highlights a market gap that CapTable has been filling. In just the past five months, our investment platform has raised over 5 million Brazilian reais, bringing the possibility of exponential gains to more than a thousand investors and enabling the growth of innovative companies. Moreover, CapTable does not introduce an unfamiliar concept to investors — it simply provides a cohesive and secure environment, connecting startups and investors, appreciating invested capital, and fostering the growth of new startups.
Furthermore, our data demonstrates a growing democratization of investment crowdfunding. As evidence of this, we have investors in every state in Brazil, with Rio Grande do Sul, São Paulo, and Rio de Janeiro being the three largest states by total investment amount. Another figure that excites me is the growth in the number of female investors on our platform. In a sector typically dominated by men — who account for 83.1 percent of the total value invested through CapTable — women believed in the "O Amor é Simples" project, where they were responsible for 30 percent of the invested capital.
Why invest in startups?
The financial market in Brazil is sending clear signals that investors need to explore differentiated forms of investment. Traditional investments such as savings accounts and CDBs have become less advantageous, as the SELIC rate — which is closely tied to the returns on these instruments — saw a significant decline in 2019.
I believe that investing in equity stakes in high-growth-potential technology companies is, perhaps, what offers the greatest possibility of achieving outsized returns. CapTable was created with the goal of allowing a group of people to invest — at widely varying amounts — in companies that need resources to fund their operations. This is known as investment crowdfunding, which ensures that this type of investment is not restricted to large investors and investment funds.
What lies ahead?
Looking at future developments, ABS president Amure Pinho believes Brazil is entering its "second cycle." A significant portion of Brazilian startups was characterized by offering software solutions to sectors more receptive to technology. This second cycle is represented by more traditional segments — generally more resistant to digital transformation. Sectors such as industry, agribusiness, and healthcare are expected to come into focus.
Attentive to this new cycle and grounded in recent research conducted with our investors, CapTable identified that the fintech and agrotech segments are the most sought after by our investors. Stay tuned, as CapTable will soon bring the opportunity to invest in these sectors. Participation will be open to any investor, and the investment process is straightforward — carried out entirely online.
Visit the CapTable website now, create your account, and don't miss this opportunity!