Brazil stock exchange B3 tests online platform to simplify and accelerate startups' fundraising

A partnership between the B3, the venture capital fund Redpoint eventures and the British fintech Globacap promises to accelerate investments in early-stage Brazilian startups

B3, the Brazilian Stock Exchange
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  • The platform helps startups and SMEs to raise, manage and sell shares faster;
  • Globacap already has about £ 1 billion under management from more than 8,000 investors who have invested in more than 60 global companies;
  • Brazilian startup Ribon raised $ 100,000 through the platform;
  • B3 is now studying to bring the solution to Brazil.

Brazilian stock exchange B3 has partnered with venture capital fund Redpoint eventures and fintech Globacap to test an online platform that helps startups and Small and Medium Businesses to raise, manage and sell shares faster on a single platform. In the pilot project, Brazilian startup Ribon, a socialtech of individual donations from Redpoint’s portfolio, raised $ 100,000 through Globacap’s platform.

With this partnership, B3 expects to boost the Brazilian entrepreneurial ecosystem and, of course, be closer to that ecosystem. “This is yet another B3 project to be closer to Brazilian startups. We have already invested in Redpoint’s venture capital fund and we have tried to bring startups to be our suppliers, just as we have tried to be solution providers for them. And obviously, we want them to do their fundraising, especially the IPOs, at B3,” explains Tarcísio Morelli, director of B3’s Tariff and Market Intelligence.

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Globacap is a UK fintech regulated by the Financial Conduct Authority (FCA/UK) that uses blockchain technology for fundraising, managing shareholder positions (cap table), managing shares and stock options for employees, among others. Globacap already has about £ 1 billion under management from more than 8,000 investors who have invested in more than 60 global companies through the platform.

At the Globacap interface, startups register the necessary documentation for fundraising – such as company presentation, financial reports, contracts, among others – and coordinate the entire fundraising process. The startups are able to send a kind of invitation for potential investors to view the company’s presentation. Globacap’s platform includes investors from 55 countries.

READ ALSO: Brazilian socialtech Ribon is recognized among the most innovative in the world by the Bill and Melinda Gates Foundation

“This makes the fundraising easier as all potential investors access the same set of documents. And, if they want to invest, the entire process is automated, I mean, the financial settlement, quotas, the securities that support this investment. The asset property is in a blockchain managed by Globacap, so at any time the investor can check the position of his investment too. Thus, the entire process is facilitated and automated by the platform,” explains Morelli.

Rafael Rodeiro, Ribon‘s founder and CEO, the first Brazilian startup to raise funds using Globacap in Brazil, approved the experience. “We believe that bringing Ribon to the blockchain will help us to scale more quickly in the future. The fundraising process was stagnant in the 1980s, despite this accelerated digitization times that we live in,” he explains.

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To validate the new fundraising tool, Ribon tested the platform by issuing a convertible promissory note and investors anywhere in the world can participate with contributions of at least $ 10,000. After the pilot project is concluded, B3 is now studying to bring the solution to Brazil.

Latin American startup ecosystem on the rise

The Latin American startup ecosystem is experiencing a good moment. Last year, more than $ 4 billion of venture capital funds were poured – and more than half of this, $ 2.3 billion, was invested in Brazilian startups. The second country that most attracted investments were Mexico, which received $ 831 million.

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