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Jun 8, 2015 2:37 PM ET

Archived: Crowdfunding and Brazil – the perfect storm

iCrowdNewswire - Jun 8, 2015

Catarse, Queremos!, Vakinha, Kickante, Startando, Juntos com Vc (Garupa), Bicharia, Social Beers, IdeaMe, Impulso, Salve Esporte, Sibite, Broota and EuSócio are but a few of the crowdfunding platforms currently operating in Brazil according to the Brazil Crowd Funding Association. Brazil seems so perfect for equity crowdfunding one would think the whole phenomenon was custom created for Brazil.

  1. Brazil is the fifth largest country in world in population and number of internet users.  About 108 million people out of a growing population of 204 million (53%) use internet. Over 71 million Brazilians are active on Facebook alone.
  2. In a 2014 article the Americas Society / Council of the Americas estimated that there are 6.3 million small-and-medium-sized enterprises (SMEs) in Brazil – SMEs defined by Brazil’s National Development Bank as having annual revenues of less than $39 million per year.
  3. Brazil is a country overwhelmed by bureaucracy. Archaic corporate regulatory systems, inadequate tax structures, sky high interest rates and very little or no access to capital, yet SMEs contribute an estimated 20% of Brazil’s annual GDP and 50% of all employment.
  4. Entrepreneurship, technology and women have become driving forces behind the growth of SMEs. A 2014 report estimates that over 500,000 women attempted to buy a franchise in Brazil. The federal government launched a programme to spur the growing role of technology partnering with private accelerators to invest in tech startups and a 2013 survey found that 80% of respondents thought opening a company was a desirable career path.

This all adds up to the perfect storm for crowdfunding to explode in a country where the employment engine is starving for efficiencies and most of all, access to capital. Brazil today is a combination of a very large SME market with a growing entrepreneurial population that is better educated and willing to take risks looking for greater rewards. A global and interconnected population with a rapid adoption of technology.

And access to capital isn’t the only factor driving the growth of Brazil’s crowdfunding ecosystem. Many—particularly the nation’s youth—are turning to crowdfunding as a means to express their views on social and political issues. Meanwhile, Brazil’s crowdfunding ecosystem is already healthy and growing. The World Bank report noted that South America’s largest economy now has 17 crowdfunding platforms, including Catarse. The site bills itself as the “biggest crowdfunding community in Brazil”.

iCrowdNewswire, the leading crowdfunding press release, content marketing and social media services newswire announced an expansion into the Brazil market today. (More…)

Via iCrowdNewswire
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