BNDES Sets up VC Fund

Brazil’s development bank will set up a new fund geared toward investing in biotechnology and nanotechnology companies. The BNDES will contribute up to 25% of its resources to the fund with the remaining coming from partner firms. Companies interested in accessing the fund’s cash can apply through the bank’s site. The model for the VC fund is analogous to what the BNDES has done in the private equity space. In August 2008, it set up 3 funds called Brasil Agronegocio, FIP Terra Viva and CRP VII, alongside a group of private equity firms including BRZ Investimentos, DGF Investimentos and CRP Cia. de Participacoes, all geared towards agriculture. It plans to do the same for the forestry and oil & gas sectors. The BNDES says it invests capital in 31 funds worth BRL8bn.