Tuesday, February 02, 2010
Emerging companies in the biotechnology and nanotechnology sectors are going to receive a boost. The creation of a venture capital fund has been passed by the Brazilian Development Bank (BNDES). According to the BNDES, the two sectors have been selected in keeping with the institution’s strategy of supporting technological innovation in the country’s industrial matrix, as a means of guaranteeing the competitiveness of Brazilian companies.
The bank will participate by means of its subsidiary BNDES Participações (BNDESPAR), and will own up to 25% of the fund’s committed equity.
The venture capital fund will be established under the BNDES’ Investment Funds Program, launched in July last year. In the first phase, in August 2008, the program selected three private equity funds: BB Brasil Agronegócio, FIP Terra Viva and CRP VII.
According to the BNDES, the investment targets for the second and third phases are being selected. The bank intends to choose funds linked to assets in forestry and oil and gas. The BNDES currently takes part in 31 investment funds, with committed equity of approximately 8 billion Brazilian reals (US$ 4.4 billion).
