Investment in Technology Based Small Enterprises - RSTEC

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The purpose of this fund is to make equity investments in small technological enterprises in the Brazilian State of Rio Grande do Sul. The majority of the investments will be in start-up companies, in sectors such as the internet, telecommunications and software. The MIF, as a key investor in this fund, has a major role to play in the development of technology-based enterprises in southern Brazil. This fund will also be the first experience in using venture capital as a financing tool in the early stages of enterprise creation in Brazil. The co-investors, SEBRAE and BNDESPAR, are key players in the sector of the Brazilian Small and Medium Enterprises. It is envisioned that the fund will attract private investors, increasing its capital from its current $9 million to $12 million. Despite its few months in operation, the fund has a promising pipeline of operations and its investment committee has already approved five operations.