How fast can a startup raise BRL 1 million? According to CapTable, it’s a matter of hours. Brazilian equity crowdfunding platform has already raised BRL 30 million for startups this year and plans to convince its investors to bet more BRL 70 million until December.
The equity crowdfunding market, also known as “investment crowdfunding” in Brazil, has been growing steadily since it’s regulation by the Brazilian Securities and Exchange Commission (CVM) in 2017. Only in the first six months of 2021 startups have raised BRL 96,5 million through such platforms, says SMU Investimentos.
On Thursday, CapTable opened a new call for startups interested in fundraising through its services. The equity investment platform searches for startups willing to raise up to BRL 5 million — the limit established by CVM’s e current regulation.
CapTable was created by Paulo Deitos and Guilherme Enck in July of 2019, with Brazilian startups and innovation platform StartSe as one of its major partners.
“The pandemic helped change some behaviors and highlighted technology. Startups gained prominence. In addition, the interest rate reached historic lows. In other words, there was a flow of capital from safer to a little more riskier assets. The two scenarios created a strong interest for the assets we offer,” explains CapTable co-founder Guilherme Enck.
After startups’ registration, CapTable team analyzes the documents and discloses the opportunity to its investor base. Currently, the service has 4,300 active investors and is responsible for contributions to 31 startups.
Its fastest round so far was Trashin, an ESG and waste management startup based in Porto Alegre, Southern Brazil. In May, the company raised BRL 1 million from 206 different investors in only four hours. CapTable has also managed to pull another four “blazing fast rounds” this year, closing deals in less than a day.
“Our goal to raise BRL 70 million is bold, but well-founded. The innovation market has been an island of development in Brazil in recent years. We trust this acceleration curve will be confirmed,” says Enck.