The SGB Sector in 2017

Capacity Development: Brazil

Brazilian accelerators and incubators relied primarily on government and philanthropic funding

Funding Source
Median Contrbution
Number of Respondents
Government
60%
Philanthropy
50%
Venture Fees
18%
Consulting Revenue
33%
Investor Fees
35%
Equity Returns
15%
Other
64%

In 2017, ANDE published a report called Landscape Study of Accelerators and Incubators in Brazil, which analyzed the characteristics of 53 accelerators and incubators in Brazil.

Approximately one-third of respondents guarantee financing to some or all the businesses supported, with equity being the most common form of investment. The most common sources of funding for operations are government, philanthropy, and venture fees, with each being cited by almost half of the respondents. On average, the funding sources that make up the largest portions of operating budgets are government (median contribution 60 percent) and philanthropy (median contribution 50 percent).

The report recommended that, given the current macroeconomic and political situation in Brazil, accelerators and incubators should consider diversifying their funding sources. This could be done by exploring possibilities for corporate partnerships or expanding the use of venture fees or equity stakes. In addition, organizations investing in the entrepreneurial ecosystem should pay attention to the specific role and needs of accelerators and incubators when defining funding priorities.