Indicator Capital, BNDES and Qualcomm Ventures launch the first fund in Latin America with a focus on Internet of Things (IoT)
May 2021 – Indicator Capital, the National Bank for Economic and Social Development (BNDES) and Qualcomm Ventures LLC announced today the launch of the early-stage venture capital fund Indicator 2 IoT FIP Fund, with a first-close of R$ 240 million, focused on Internet of Things (IoT) and Connectivity in Latin America. The fund has seven major investors: in addition to the creators of the public bid, BNDES and Qualcomm Ventures, additional funds were raised from Banco do Brasil, Multilaser, Motorola, Lenovo and Telefônica Ventures / Vivo, among other institutional and corporate investors.
Aimed at startups that develop services and products related to IoT and Connectivity, the fund promotes the National IoT Plan, accelerating technologies from strategic sectors for the country, such as Agriculture, Health, Industry 4.0, Smart Cities and Mobility. With this funding, Indicator Capital becomes the largest Brazilian venture capital manager in Latin America specializing in IoT.
According to Thomas Bittar, one of the three founding partners of Indicator, “the closing of the product was disputed, and we were unable to accommodate all investors. For this reason, we prioritized the most strategic to help us accelerate the formation of the national IoT ecosystem. Our objective was to launch a fund with at least R$ 120 million, but the high demand made it possible to close the fundraising with twice the original amount”, he adds.
The fund is the result of a joint initiative by BNDES and Qualcomm Ventures, investment arm of Qualcomm Incorporated, a world leader in next-generation wireless technologies that, in December 2019, launched a public call for tenders to select a manager to structure the newly created investment fund. Together, BNDES and Qualcomm Ventures made an initial investment of R$ 85 million.
According to Bruno Laskowsky, Capital Markets Managing Director of BNDES,
“The success of this fundraising demonstrates how the allocation of public funds can be enhanced by acting in partnership with private investors to foster strategic sectors for the country such as IoT ecosystem”.
“As a world leader in wireless technology innovation, Qualcomm has an important role in the development and implementation of 5G worldwide and has created a robust ecosystem of innovations that should allow for very positive transformations in the way we live and how companies operate. The Internet of Things is a fundamental part of this strategy and Qualcomm Ventures is proud to be an anchor investor in the Fund that will support startups developing transformative solutions for the advancement of IoT in Latin America”, comments Carlos Kokron, Vice President, Qualcomm Technologies Inc. and Executive Director, Qualcomm Ventures Americas.
With a duration of 10 years, the fund will invest in up to 30 companies in the initial stage (Series A), through investments of, on average, R$ 10 million. “We intend to make seven investments by the end of 2021, playing a leading role in IoT in Latin America. We are working with great dedication to place Brazil definitively on the global map of Internet of Things, alongside leading countries in technology”, adds Derek Bittar, founding partner of Indicator Capital.
Complementarity of the partners enhances the success of startups
One of the manager’s great differentials is the combined experience and complementarity of the three founding partners of Indicator Capital – Derek Bittar, Fabio Iunis de Paula and Thomas Bittar – for decades working in different investment segments and carrying out complete investment and venture capital cycles successfully. Indicator Capital is dedicated to creating joint value for entrepreneurs and investors, through its proprietary Building Value Together® methodology.
This unique approach solves one of the main difficulties of a venture capital fund: adding value at all stages of the investment cycle in the startup. Derek Bittar works in the first stage of the investment process, so that the fund selects the best investment opportunities for startups; Fabio Iunis de Paula applies the best venture capital practices to help accelerate startups and turn them into successful companies; and Thomas Bittar works to support mergers and acquisitions to fund entrepreneurs in all their transactions, aiming the return on capital.
Indicator Capital’s decision to invest in IoT and Connectivity was due to the combination of the unique moment of global digital transformation and the potential of the technological ecosystem in the country for new investments. The strategy is supported by the maturity of the National IoT Plan in recent years, and by the evolution of the Internet of Things concept, factors that put Brazil in a position to embrace this technological revolution.
The National IoT Plan was developed based on the study “Internet of Things: An action plan for Brazil”, in an initiative led by BNDES and the Ministry of Science, Technology and Innovations (MCTI). Its objective is to accelerate the implementation of the Internet of Things as an essential tool for the sustainable development of the Brazilian society, transforming people’s lives. According to the study, its positive impact on the Brazilian economy is expected aggregate US$ 200 billion by 2025.
“From Silicon Valley, we monitor the main technological trends, maintaining relationships with world leaders in the sector, and helping Brazilian startups internationalize their businesses at the right time. We apply our proprietary Building Value Together® methodology, contributing significantly to the development of startups. For this reason, we believe that, from these investments, great national technology players will be born in the next 5 to 10 years”, reinforces Fabio de Paula.
Source: Indicator Capital