It is a well-known fact that the market has been evolving at such a rapid pace that it is seeking efficient alternatives to make investments viable. The same is true of the start-up world, where there is always a need to create mechanisms in the Brazilian legal system that can support new scenarios.
At the end of last year, Complementary Law 155 brought significant changes to this scenario by regulating the so-called "angel investor", initiating a series of discussions on the possibilities and implications of this change.
Now, a new tool is taking over the debate: the Crowdfunding. A form of collective financing regulated by the CVM (IN CVM 588) on July 13, which already existed in countries such as Germany, the United States, France and Italy.
The novelty has an impact on the business plans of many startups, as it could accelerate the growth of this market by making it easier to raise capital.
How will it work?
An electronic participatory investment platform will be created, where small companies will be able to make a public offering for the distribution of securities. In other words, investors or groups of investors will be able to invest a total of 5 million reais per year in certain startups.
Who can receive investment?
This type of investment can be made by small companies, which according to the CVM are those with a gross annual income of up to 10 million reais.
Who can invest?
Investors must be registered and qualified with the CVM and may invest up to ten thousand reais per calendar year.
The idea is that these amounts received as investment are used to exploit the company's economic activity, thus creating a market leverage mechanism for business development.
First and foremost, startups should prepare themselves with well-structured articles of association, confidentiality agreements, memoranda of understanding between partners, internal regulations, internal standards for quality control and management, as well as a good contractual and labor risk prevention policy. All of this is an investment that starts at an early stage and ensures that a great idea doesn't become a future nightmare for the partners.