Micro, small and medium enterprises (MSMEs) account for 52% of jobs with a signed portfolio in the private sector. Their collapse, and consequently more than 16 million jobs, requires cash. This need, especially at this time of crisis, can be met by a method still little known to the general public: investment crowdfunding or collaborative investment. To this end, both fintech companies and large banks are searching for solutions.
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The crowdfunding model works with the debt model
CrowdInvest and ABFintechs, which gather 26 platforms approved by CVM (Securities and Exchange Commission), urged by BNDES (National Bank of Economic and Social Development), produced and presented, in a few days, with good receptivity, a cast of creative solutions. The project has the support of Adolfo Menezes Melito, president of Crowdinvest, and Diego Perez and Paulo Deitos, directors of ABFintechs (Brazilian Association of Fintechs), who are also platform entrepreneurs within CrowdInvest.
“The initiative is also supported by renowned law firms such as Barcellos Tucunduva, Tozzini & Freire, Stocche Forbes, Godke, Gomes Altimari, and VBSO. In addition, in the last five years, 230 offers have been made (public offerings of securities), raising just over $39 million (R$ 200 million) for startups and real estate projects.
The main axis of the proposal is the use of the funds dammed from the BNDES card – currently issued by financial agents. Currently, 700,000 companies have the card and can “acquire” products and services previously registered at BNDES’ website by 30,000 national suppliers – about 300,000 items among machines, equipment, services, software and the like.
The proposal to operationalize the crowdfunding model works with the debt model, where for every $0.2 (R$1) lent by the crowd, $0.2 (R$1) is made available through the card, with funds from BNDES.
The initiative suggests the use of the BNDES Guarantee Fund and/or Sebrae Guarantee Fund for private investors. It also seeks to make a viable guarantee model for MSMEs – credit insurance, guarantee fund, and others, as already exists in other markets. The advantage is that, instead of the measures to release resources that currently rescue companies in a situation of near inactivity, this measure has repercussions on the credit market for MSMEs in the future.
Credit will also be available for startups in Brazil
However, this movement is not restricted only to big banks: startups are also looking to find solutions. ABFintechs, together with other companies in the segment, announced that it will send to the Central Bank a series of suggestions for measures to make credit possible for MSMEs in Brazil.
Some measures were detailed by Renan Schaefer, from the financial startup a55. They include very short-term measures, such as contributions by BNDES, FINEP (Financier of Studies and Projects) and the National Treasury in Credit Rights Investment Fund, in sub and mezzanine quotas to release liquidity to promote credit. That is guaranteed in part by future receivables from companies and guarantee funds; and partnerships with BNDES, FINEP, Caixa Econômica Federal, Banco do Brasil, Banks and Regional Development Agents with fintech companies to capitalize credit for MSMEs.
Whether on the side of large banks or of fintech companies and startups, efforts are focused on ensuring the survival conditions of MSMEs in Brazil. In addition, is helping to avoid a more serious impact on the economy. As professor of the MasterClass in Governance & New Economy, Courtnay Guimarães said: “in a tsunami you don’t surf, you survive”. Oxygen may be on its way.
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First published in GAZETA DO POVO, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
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