The month of March gave people something to talk about. And it's not just because it's Women's Month. On the 5th, the Economic Affairs Commission (CAE) approved the complementary law project (PLP)252/2023, that creates a new investment model to encourage the growth of startups.
When it comes to startups and development, the news is good. Today, in Brazil, there are about 20 thousand startups in operation and the outlook is that only 2 thousand will survive. According to the Brazilian Service of Support for Micro and Small Enterprises (Sebrae), 9 out of 10 companies of this type cease their activities in the first years of operation.
It is no news to anyone that the Brazilian entrepreneurial landscape is a true arena of lions and, without incentives, these statistics will not change anytime soon. Therefore, even walking at a snail's pace, we need to celebrate every achievement, and this PL is certainly one of them.Brazil needs new policies to leverage the entrepreneurial potential we have.
The project approved in the CAE changes the Legal Framework for StartupsComplementary Law 182, of 2021to create the Convertible Investment Agreement in Share Capital (CICC), inspired by the Simple Agreement for Future Equity (Safe), a standard contract model used in the international market. The great gain lies in the fact that the invested amounts do not integrate the share capital applied in the startup. This means that the person who invests is exempt from operational risks, such as labor and tax debts.
But what is the difference between the CICC and the convertible loan for equity participation, most used method today? Well, due to its nature of debt, the convertible bond establishes a deadline for the reimbursement of the funds contributed by the investor and allows for the conversion of the amounts into equity participation in the company. The new investment model proposed by the law does not have this characteristic.
The PL is authored by Senator Carlos Portinho (PL-RJ) and is now proceeding to the Senate Plenary on an urgent basis. Subsequently, it will be forwarded for analysis by the Chamber of Deputies, to then be directed to the sanction of the President of the Republic. According to Portinho, the new model provides more legal security and tax transparency for both startups and investors. With that, the proposal would create a favorable environment for the investment market in startup companies, mainly for those in the early stage.
These changes open new paths and opportunities for growth and can cause a positive domino effect in the ecosystem (so we hope). By facilitating and making the investment process more accessible and transparent, atraímos mais pessoas físicas a se tornarem investidores- anjos. Currently, in the country, this number is still very low: there are only 7.963, according to research conducted by Anjos do Brasil, and only 10% are women.
Looking at this market and strengthening its potential is to understand that it is a fundamental sector for the development and productivity of the entire modern economy
