Brazilian VC Sector Pushes to Rename 'Risk Capital' as 'Investment Capital' to Boost Appeal

The Portuguese Private Equity and Venture Capital Association (APCRI) is advocating for a change in terminology from 'capital de risco' (risk capital) to 'capital de investimento' (investment capital) aiming to make the venture capital sector more attractive to investors. APCRI highlights that the existing phrase "risk capital" carries negative connotations that discourage potential investors, despite data showing strong performance in companies receiving such investments. An ISCTE study presented by APCRI indicates that firms backed by private equity and venture capital generate an average turnover 12.3 times greater than the national average and employ about 15.1 times more staff, with nearly half their revenue coming from exports. The sector reportedly contributes an annual turnover of €21.7 billion and supports 177,000 jobs, alongside an average corporate tax payment of €2.2 million per company in 2023. Stephan de Moraes, APCRI's president, calls for enhanced investment conditions and faster government measures to establish a fund of funds managed by the Portuguese Development Bank and to incentivize institutional investors to engage with private equity and venture capital focused on national companies. The proposal seeks to align with international standards and better reflect the controlled nature of investment risks in the sector, potentially reshaping investor perceptions in Brazil and similar markets.