Abstract
Each source of financing in the market has its own characteristics, with different benefits and costs. Therefore, there are more and less appropriate sources of financial resources for each company, depending on its needs. With this in mind, this chapter presents a list of the main sources of financing by stages of the life cycle of Brazilian startups. Definitions, investment processes, challenges that need to be overcome and cases of Brazilian companies that use each source are discussed. Knowing the differences between funding sources is extremely important for entrepreneurs to make decisions about which type of capital is the best option to finance their businesses.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
ANPEI. (2009). Guia Prático de Apoio à Inovação. São Paulo. Retrieved from http://proinova.org.br/download.php?arquivo=Guia_Pratico_de_Inovacao_2014.pdf.
Benson, D., & Ziedonis, R. H. (2010). Corporate Venture Capital and the Returns to Acquiring Portfolio Companies☆. Journal of Financial Economics, 98(3), 478–499. https://doi.org/10.1016/j.jfineco.2010.07.003.
BNDES—Banco Nacional de Desenvolvimento Econômico e Social. (2018). Inovação BNDES. Retrieved October 20, 2018, from https://www.bndes.gov.br/wps/portal/site/home/onde-atuamos/inovacao/inovacao/!ut/p/z1/04_iUlDg4tKPAFJABpSA0fpReYllmemJJZn5eYk5-hH6kVFm8T6W3q4eJv4GPv4-7uYGjj7u_p7BwQEGJk5m-l5gjQj9IBPw64iA6oAqh1P6kUZFvs6-6fpRBYklGbqZeWn5-hGZefllicmJ-foF2VGRAMw9nB8!/.
Buscapecompany. (2018). Nossa história. Retrieved October 15, 2018, from https://www.buscapecompany.com/portal/buscape-company/sobre-nos/nossa-historia/%3E.
Cherobim, A. P. M. S., Mendonça, A. T. B. B. de, Woehl, S., & Nascimento, T. C. (2011). Capital de risco no Brasil: a atuação do fundo de capital semente CRIATEC. Análise, 22(2), 189–201. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&profile=ehost&scope=site&authtype=crawler&jrnl=15162680&AN=91534292&h=lv%2BNRmdnoyZPzWLpZx8zknz4pBIkW14JqzljAk8nRmJoDqGRIKYFfKan%2FBC0FGV8kxLldypQmnRvbm47umVc3Q%3D%3D&crl=c.
CNPq. (2015). Institucional. Retrieved July 15, 2015, from http://cnpq.br/o-cnpq;jsessionid=99EC9A41298C2B58D37CE816CFB.3C946.
Das, S. R., Jagannathan, M., & Sarin, A. (2003). Private Equity Returns: An Empirical Examination of the Exist of Venture-Backed Companies. Journal of Investment Management, 1(1), 1–26. https://doi.org/10.2139/ssrn.298083.
Dushnitsky, G., & Lenox, M. J. (2006). When Does Corporate Venture Capital Investment Create Firm Value? Journal of Business Venturing, 21(6), 753–772. https://doi.org/10.1016/j.jbusvent.2005.04.012.
FINEP. (2015). Sobre a Finep. Retrieved July 17, 2015, from http://www.finep.gov.br/a-finep-externo/sobre-a-finep.
Gompers, P., & Lerner, J. (1998). The Determinants of Corporate Venture Capital Successes: Organizational Structure, Incentives, and Complementarities. Cambridge, MA. https://doi.org/10.3386/w6725.
Hall, B. H. (2002). The Financing of Research and Development. Oxford Review of Economic Policy, 18(1), 35–51.
Harris, R. S., Jenkinson, T., & Kaplan, S. N. (2014). Private Equity Performance: What Do We Know? The Journal of Finance, 69(5), 1851–1882. https://doi.org/10.1111/jofi.12154.
Hashimoto, M. (2014). Os desafios do Investimento Anjo no Brasil. Retrieved from http://www.anjosdobrasil.net/2014/02/os-desafios-do-investimento-anjo-no.html.
Kaplan, S. N., & Schoar, A. (2005). Private Equity Performance: Returns, Persistence, and Capital Flows. The Journal of Finance, 60(4), 1791–1823. https://doi.org/10.1111/j.1540-6261.2005.00780.x.
Ljungqvist, A., & Richardson, M. (2003). The Cash Flow, Return and Risk Characteristics of Private Equity. Cambridge, MA. https://doi.org/10.3386/w9454.
Luna, F., Moreira, S., & Gonçalves, A. (2008). Financiamento à Inovação. Políticas de Incentivo à Inovação Tecnológica no Brasil (pp. 229–262). Brasilia: IPEA.
Maçaneiro, M. B., & Cherobim, A. P. M. S. (2011). Fontes de financiamento à inovação: incentivos e óbices às micro e pequenas empresas – estudo de casos múltiplos no Estado do Paraná. Organizações & Sociedade, 18(56), 57–75. https://doi.org/10.1590/S1984-92302011000100003.
Mason, C. M., & Harrison, R. T. (2000). Influences on the Supply of Informal Venture Capital in the UK: An Exploratory Study of Investor Attitudes. International Small Business Journal, 18(4), 11–28. https://doi.org/10.1177/0266242600184001.
Minardi, A. M. A. F., Bortoluzo, A. B., & Moreira, L. do amaral. (2015). O impacto do crescimento dos fundos de PE e VC no desempenho dos investimentos (pp. 1–17). 15o Encontro Brasileiro de Finanças.
Morais, J. M. (2008). Uma avaliação de programas de apoio financeiro à inovação tecnológica com base nos fundos setoriais e na lei de inovação. In Políticas de Incentivo à Inovação Tecnológica no Brasil (pp. 67–105). Brasilia: IPEA. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&profile=ehost&scope=site&authtype=crawler&jrnl=15162680&AN=91534292&h=lv%2BNRmdnoyZPzWLpZx8zknz4pBIkW14JqzljAk8nRmJoDqGRIKYFfKan%2FBC0FGV8kxLldypQmnRvbm47umVc3Q%3D%3D&crl=c.
Park, H. D., & Steensma, H. K. (2012). When Does Corporate Venture Capital Add Value for New Ventures? Strategic Management Journal, 33(1), 1–22. https://doi.org/10.1002/smj.937.
Salerno, M., & Kubota, L. (2008). Estado e inovação. Políticas de Incentivo à Inovação Tecnológica no Brasil (pp. 13–64). Brasi: IPEA.
SEBRAE. (2014). Evolução do saldo líquido de criação de emprego formal no Brasil pelos pequenos negócios. Brasília.
SEBRAE—Serviço Brasileiro de Apoio às Micro e Pequenas Empresas. (2018). Startup Sebrae. Retrieved October 20, 2018, from http://www.sebrae.com.br/sites/PortalSebrae/ufs/sp/programas/startup-sp-sebrae,59bb8c2864761610VgnVCM1000004c00210aRCRD.
Siegel, R., Siegel, E., & MacMillan, I. C. (1988). Corporate Venture Capitalists: Autonomy, Obstacles, and Performance. Journal of Business Venturing, 3(3), 233–247. https://doi.org/10.1016/0883-9026(88)90017-1.
Sykes, H. B. (1990). Corporate Venture Capital: Strategies for Success. Journal of Business Venturing, 5(1), 37–47. https://doi.org/10.1016/0883-9026(90)90025-O.
Titman, S., & Martin, J. (2010). Avaliação de Projetos de Investimentos Valuation. São Paulo: Bookman.
Winborg, J., & Landström, H. (2001). Financial Bootstrapping in Small Businesses. Journal of Business Venturing, 16(3), 235–254. https://doi.org/10.1016/S0883-9026(99)00055-5.
Zeisberger, C., Prahl, M., & White, B. (2017). Mastering in Private Equity—Transformation via Private Equity, Minority Investiment & Buyout. New Delhi: Wiley.
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2019 The Author(s)
About this chapter
Cite this chapter
Carrete, L.S., de Faria, A.M. (2019). The Financing of the Startup Life Cycle. In: Oliveira, Jr., M., Cahen, F., Borini, F. (eds) Startups and Innovation Ecosystems in Emerging Markets. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-10865-6_5
Download citation
DOI: https://doi.org/10.1007/978-3-030-10865-6_5
Published:
Publisher Name: Palgrave Macmillan, Cham
Print ISBN: 978-3-030-10864-9
Online ISBN: 978-3-030-10865-6
eBook Packages: Business and ManagementBusiness and Management (R0)