We know all about the BRIC Economy (Brazil, Russia, India and China), and thanks to comments by many readers about Brazil; let us compare the venture capital & private equity industry across these 4 economies.
The Brazilian Wonder Economy is coming
As many have suggested and my apology not including it in our first article, I was very much like to publish an article on its own on Brazil. Brazil offers great opportunities for financial professionals and other industries such as CleanTech and Natural Resources; furthermore, the announcement to host Olympics will add significant opportunities to the nation’s infrastructure industry. If you are looking for a career in venture capital, Brazil is certainly an emerging destination.
Venture Capital remains as a relatively new industry; and to be honest, there are not many home grown Brazilian venture capital firms; but interestingly, is to see a significant growth of US and European even Japanese and Korean financial institutions and investment firms setting up their investment division in Brazil as a base both for Brazil and for the rest of Latin America.
Skills in demand in Brazil: Brazil has escaped the recession relatively well, especially compared to the rest of the economies in Latin America, which relies heavily on the US.
Certain professionals are in high demand in Brazil, investment professionals, especially those who understand Latin American companies; analysts or experts who understand and can assist in commercialization of many Brazilian innovations; particularly in technology sectors; also cleantech and renewable energy sectors where Brazil is the global leader in quite a number of technologies.
The Olympics will require a large number of engineers mainly civil and also those with urban planning exprience. Tourism and avaiation industries will also drive opportunities for Brazil.
What does this mean for Venture Capital and Private Equity Industries?
I think Brazil will attract a lot of investments from global VCs and PEs, the PEs are likely to participate in large number of infrastructure and also potential privatization projects. Other areas identified by our respondents in US and Europe in Brazil include: Telecommunications, which is a very fast emerging industry in Brazil; Tourism including eco-tourism and real estate opportunities; natural resources which have attracted many foreign strategic investors and sovereign wealth funds. Brazil is also looking out to global markets for talent and also seeking international financial professionals to expand its venture capital & private equity industry; this certainly means great opportunities for career seekers.
Over time, Brazilian firms are expanding their own home-grown venture capital and private equity groups; especially when its currency is currently one of the strongest in the world; it wants to use this unique opportunity to invest in international markets; particularly in US and Asia. In the 1990s, Japanese investors had invested significant resources into Brazil, and this has helped them to form strong ties with many Asian economies as well.
Amongst our surveys, many industry analysts believe Brazil will eventually have a considerable venture capital industry; and some have suggested it could be the best amongst the BRIC Economy; because of its political stability, access to IT and other professional talent; the Olympics will take Brazil to the next level of international expertise; I personally believe it will create the same impact as the Seoul Olympics; which took Korea into a new generation of industrialization. If you are looking for the “Next Big Thing” in Venture Capital Industry; consider Brazil; if you have experience in the financial services industry, look out for opportunities in Brazil.