Newsflash

Brazil Economy Brazil America Ventures - International Business Development and Venture Capital Advisory Services

  • Brazil is the 5th largest population in the world with a population of 200 million people.
  • Brazil recently edged past China to become the largest emerging market in the world (Morgan Stanley Capital Int’l Emerging Markets Index September 10, 2008)
  • Newly discovered and massive off-shore oil fields led to an invitation for Brazil to become a member of OPEC
  • In 2009 Wal-Mart will invest $1B in Brazil
  • The famed Silicon Valley venture capital firm Draper Fisher Jurvetson partnered with a leading Brazilian venture capital firm FIR Capital in Belo Horizonte with an initial capital contribution of $40M
  • Brazil is an undisputed global leader in clean and renewable energies with a concentrated emhasis on BioFuels.

Brazil Internet Usage

  • Google made Brazil their center for all South American and Latin American operations with most of its software development and engineering to be based in Belo Horizonte
  • Brazil leads all of Latin America and South America in the number of Internet users, well ahead of both Mexico and Argentina
  • Brazil is Google’s fastest growing market outside of the U.S. generating an estimated $500 million per year in revenues.
  • Brazil has the second largest user base of Google Gmail e-mail accounts
  • Brazil has the third largest number of broadband users in the Americas, behind only the U.S. and Canada. 
  • Internet users in Brazil have doubled in each of the past three years
  • 47% of Brazilian adult citizens have Internet access which represents 59 million Internet users over the age of 16 according to a March 2008 survey conducted by DataFolha and commissioned by F/Nazca Saatchi & Saatchi.  The survey also found that 53% of the people surveyed regularly post content on the Internet.
  • The average Brazilian Internet users spends 30.2 hours online a month, substantially higher that Latin America (28.6 hours) and worldwide (25.7 hours)
  • Internet penetration in Brazil based on population is 26.1% and expected to grow by more than 300% over the next 3-5 years.
  • Brazil is the worldwide leader in online E-Government especially in the areas of e-participation, electronic voting, online tax filing and e-procurement.
  • In 2007 more PC’s were sold in Brazil than TV sets

Brazil Mobile Usage

  • Mobile phone subscribers grew at an astonishing rate of 21% in 2007
  • Mobile subscriber penetration is 67% compared to 80% for the U.S.
  • Mobile subscribers in Brazil outnumber fixed line subscribers by more than 3 to 1     
  • Brazil is the 5th largest country for mobile phone penetration with China, U.S, Russia and India ahead of it.
 
Feb 6
Monday
Brazil America Ventures - International Business Development and Venture Capital Advisory Services
Frequently Asked Questions by U.S. companies

1. Why should we enter Brazil when we haven’t entered Europe, Japan, Korea or China?

As you know many companies mistakenly make their first international outpost in the most advanced and extremely competitive markets outside of the U.S. You have to ask yourself why?  We think the answer to this rhetorical question is that everyone enters Europe and Asia because that’s how it’s always been done with their former employers. What if you were to learn there is a unique opportunity in Brazil that is unlike any other international expansion opportunity?  Wouldn’t you at least investigate the chance for your company to be the First Mover Advantage Leader in the largest emerging market on the planet, a market that represents the highest Internet growth potential and in a country whose Internet users spend more time online than in any other country?

 

2. I think we’re still too small of a company to be thinking about international business development projects.  We need to stay focused on the U.S.
OK, as long as you don’t mind your competitors staking out their territory in Brazil ahead of you.  Or you might think of what the famed Greek statesmen Demosthenes is quoted with saying “Small opportunities are the beginnings of great enterprises”

 

3. Now that Google decided to make Brazil their headquarters for its entire South American and Latin American operations do you think that’s a good sign for our company to expand there?
Yes

 

4. How long is it likely to take before you are able to let me know what the basics about entering Brazil?
This process called the discovery phase typically takes no more than 3-4 weeks maximum.  Surely, you will want to know what the competitive climate is like in Brazil in order to make an informed business decision so that you can intelligently lessen your risks and exposure.

 

5. OK, then what happens next?
This is the best part. This is where we have serious pre-qualified meetings with potential joint venture partners and / or customers for your company. This initial Due Diligence stage typically takes anywhere from 4-6 weeks.