International Tech Hubs 3rd ed. - Digital Magazine plugd:in

BDO LLP | INTERNATIONAL TECH HUBS THIRD EDITION

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THE INVESTOR ANGLE A small but significant group of international companies are investing in fintech and hardware – the likes of Ericsson, Samsung and Huawei are some of the major players who are driving the frictionless infrastructure for Brazil’s technology industry. But another significant source of investment are private equity (PE) funds and family offices investing in certain types of start-ups and small, growing businesses. In the fintech industry, for example, digital payment start-ups such as Stone and PagSeguro have achieved high IPOs in recent years on the back of PE funding. The BCB, having made itself more accessible to non-traditional players, is now looking for businesses that can deliver high returns over a fixed period and provide more competitive consumer. Rather than focusing on seasoned businesses in traditionally stable, long-standing sectors such as manufacturing, the investment bankers’ attention is turning now to tech companies and disruptive start-ups with the potential to deliver high returns because they can provide a new type of service or solution with the potential to be adopted at great scale. In terms of international investment, the US and Europe have historically been the major players, and US and UK interest today tends to focus on fintechs and smaller businesses. But there is also growing interest from Asia, especially from Chinese companies looking to invest more from an infrastructure point of view, largely as a result of the need for greater data protection and the potential opportunities arising from the 5G technologies to come.

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