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Control of the crowdfunding Fintech Captable was acquired by Startse with the support of Patria

February 16, 2022
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Pipeline Valor
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Crowdfunding platform wants to increase business with corporate venture capital
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When Pátria closed a R$75 million investment in the edtech startup Startse in November, it set a condition. Part of the capital should be used to buy control of the crowdfunding platform CapTable, where StartSe was a minority shareholder (40%). The edtech company has just completed the transaction, buying part of the shares held by CapTable's executive partners.

The negotiations were with co-founders Paulo Deitos Filho and Guilherme Enck, who sold part of the shares but remain relevant partners and running CapTable's operation.

Accustomed to big checks, Pátria has been moving closer and closer to the universe of startups. After the Startse deal, it bought 40% of Kamaroopin, the VC manager run by Pedro Faria, ex-Tarpon - and should buy the other 60% within an 18-month window. It is through this vehicle that it will make equity purchases. But Pátria has also been strengthening the relationship of its current portfolio of private equity firms with startups.

"The Startse transaction was with seed money from Pátria, but it will go into the Kamaroopin portfolio. We already have some dry powder, but we are raising a new fund," explains Gil Karsten, partner at Pátria. "We can make investments through that manager but we also see a lot of synergies with the 40 or so private equity companies, all of which have some digital transformation value lever. In CapTable, they can find opportunities for a corporate relationship but it can also be a commercial relationship."

CapTable already works with two corporate venture capital (CVCs) of companies in Pátria's private equity portfolio, helping to find startups that have specific solutions to the companies' "pains." "CapTable started out in the initial part of the investments, which is crowdfunding, and is now moving into other layers, such as corporate venture, advisory services for M&As, we have tested the idea of a personal advisor for this type of asset, and we hope to soon be operating in the secondary market as well," says Pedro Englert, partner at Startse.

The investment tickets on the platform start at R$ 500, depending on the round. There have already been R$67 million raised through CapTable for 44 startups, with 6,000 individual investors. "Last year, we alone made 33% of the startup crowdfunding market, more than the second and third place combined," says Deitos.

He points out that one of the advantages for startup companies has been the speed of fundraising. "In the traditional funding model, it easily takes a year, on the platform a few months with money already in the box," he compares.

The fastest funding on the platform was from Zletric, which raised R$ 5 million in 88 minutes. The startup closed in January a merger with Ecovagas, startup Estapar. "These cases show that the idea that crowdfunding is adverse selection is being broken. It has become a good alternative, not the last alternative," assesses Englert.

Deitos' schedule in recent weeks was of meetings with four or five venture capital funds a day - before, it was difficult to be served by VCs, who turned up their noses at the funding model. CapTable's proposal is to bring the funds earlier to these companies and open a co-investment in crowdfunding, using the coattails of an institutional investor to attract more individuals.

Karsten doesn't see high interest rates scaring off this investor and changing the current dynamics of the market. "It only changes for those looking at the very short term, but understanding this VC market is a long-term education process, not a gold rush," he says. "Interest rates will not be 12.5% for 10 years and those who want to seek an internal rate of return of 25% to 30% a year will seek opportunity in the private world," adds the executive, citing the most pessimistic projection of the market for the Selic rate, today at 10.75%.

Translated with www.DeepL.com/Translator (free version)

Las opiniones compartidas y expresadas por los analistas son libres e independientes, y de ellas son responsables sus autores. No reflejan ni comprometen el pensamiento u opinión de Latam Fintech Hub, por lo cual no pueden ser interpretadas como recomendaciones emitidas por la platafomra. Esta plataforma es un espacio abierto para promover la diversidad de puntos de vista sobre el ecosistema Fintech.

When Pátria closed a R$75 million investment in the edtech startup Startse in November, it set a condition. Part of the capital should be used to buy control of the crowdfunding platform CapTable, where StartSe was a minority shareholder (40%). The edtech company has just completed the transaction, buying part of the shares held by CapTable's executive partners.

The negotiations were with co-founders Paulo Deitos Filho and Guilherme Enck, who sold part of the shares but remain relevant partners and running CapTable's operation.

Accustomed to big checks, Pátria has been moving closer and closer to the universe of startups. After the Startse deal, it bought 40% of Kamaroopin, the VC manager run by Pedro Faria, ex-Tarpon - and should buy the other 60% within an 18-month window. It is through this vehicle that it will make equity purchases. But Pátria has also been strengthening the relationship of its current portfolio of private equity firms with startups.

"The Startse transaction was with seed money from Pátria, but it will go into the Kamaroopin portfolio. We already have some dry powder, but we are raising a new fund," explains Gil Karsten, partner at Pátria. "We can make investments through that manager but we also see a lot of synergies with the 40 or so private equity companies, all of which have some digital transformation value lever. In CapTable, they can find opportunities for a corporate relationship but it can also be a commercial relationship."

CapTable already works with two corporate venture capital (CVCs) of companies in Pátria's private equity portfolio, helping to find startups that have specific solutions to the companies' "pains." "CapTable started out in the initial part of the investments, which is crowdfunding, and is now moving into other layers, such as corporate venture, advisory services for M&As, we have tested the idea of a personal advisor for this type of asset, and we hope to soon be operating in the secondary market as well," says Pedro Englert, partner at Startse.

The investment tickets on the platform start at R$ 500, depending on the round. There have already been R$67 million raised through CapTable for 44 startups, with 6,000 individual investors. "Last year, we alone made 33% of the startup crowdfunding market, more than the second and third place combined," says Deitos.

He points out that one of the advantages for startup companies has been the speed of fundraising. "In the traditional funding model, it easily takes a year, on the platform a few months with money already in the box," he compares.

The fastest funding on the platform was from Zletric, which raised R$ 5 million in 88 minutes. The startup closed in January a merger with Ecovagas, startup Estapar. "These cases show that the idea that crowdfunding is adverse selection is being broken. It has become a good alternative, not the last alternative," assesses Englert.

Deitos' schedule in recent weeks was of meetings with four or five venture capital funds a day - before, it was difficult to be served by VCs, who turned up their noses at the funding model. CapTable's proposal is to bring the funds earlier to these companies and open a co-investment in crowdfunding, using the coattails of an institutional investor to attract more individuals.

Karsten doesn't see high interest rates scaring off this investor and changing the current dynamics of the market. "It only changes for those looking at the very short term, but understanding this VC market is a long-term education process, not a gold rush," he says. "Interest rates will not be 12.5% for 10 years and those who want to seek an internal rate of return of 25% to 30% a year will seek opportunity in the private world," adds the executive, citing the most pessimistic projection of the market for the Selic rate, today at 10.75%.

Translated with www.DeepL.com/Translator (free version)

Las opiniones compartidas y expresadas por los analistas son libres e independientes, y solamente sus autores son responsables de ellas. No reflejan ni comprometen el pensamiento o la opinión del equipo de Latam Fintech Hub y, por lo tanto, no pueden interpretarse como recomendaciones emitidas por la plataforma. Esta plataforma es un espacio abierto para promover la diversidad de puntos de vista en el ecosistema Fintech.

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