A Brazilian platform is launched to invest in startups

CapTable's goal is to allow small investors to become partners with small but promising companies.

CapTable debuted on July 10, with an investment of $ 40 million, a figure that even impressed its founders. The platform allows investments in technology-based startups, as crowdfunding fintechs do to support causes or people.

The startup has the support of Startse, a business network that aims to integrate entrepreneurs, investors, mentors, and other digital professionals connected to the digital world.

CapTable’s goal, according to co-founder Guilherme Enck, is to allow small investors to become partners with small but promising companies. The minimum investment is equivalent to $ 265. “We are going to work with people who today invest in stocks or funds, but who accompany the growth of startups and want to grow along with them,” he says.

This company is a pioneer in a market that the Brazilian Securities and Exchange Commission ─institution that oversees the capital market in the country─ recently regulated in 2017.

CapTable works as a form of crowdfunding known as “crowd-equity.” In this modality, a large number of people invest small sums of money to be able to promote large-scale projects.

In Brazil, crowdfunding platforms that exist today, such as Catarse.me and Vakinha.com.br, have emerged with the same purpose, but focus on non-profit causes and fund initiatives of individuals and non-governmental organizations.

In contrast, CapTable allows you to participate in business growth and be a member of them. “Think of 99, which emerged as a small company to find taxis and today is a billion-dollar company,” says Enck. “The differential of CapTable is to allow small investors to connect with new companies that have real potential to gain market share and obtain profits for all those who have invested.”

In Latin America, another fintech company similar to CapTable would be PlayBusiness, a platform that allows investing in startups and franchises.

Upon entering the platform, the investing candidate faces the projects of the companies that were selected by CapTable for financing. Currently, Inbeauty is part of the portfolio. This company conducts research in nanotechnology for cosmetics. There are also startups as CON, creator of an application that helps in the production of content for the small retail area of ​​the food area (restaurants, bakeries, bakeries, cafes); Trasing, which manages the waste and connects the companies that generate solid waste with recycling cooperatives and specialized companies; and Eirene Solutions, which operates in the field of agro-industry to optimize the use of chemical products.

“The investor will get to know the company thoroughly, through financial documents, an accounting system, and the complete business plan,” explains Guilherme Enck.

The investor who decides to participate in the business will fill out a detailed record to complete the process. Each company has its financing objective. If this objective is achieved (or at least two-thirds of it), the transaction is completed, and the investor receives a convertible debt at the time the company becomes a corporation; The maximum term for this is five years, while the financing has a 90-day deadline. If at that time, the minimum funding is not reached, CapTable reimburses the money in full to the investors.

The idea of ​​the company arose after a meeting between Enck and Paulo Deitos. They had worked together in a real estate investment company a few years ago. Enck left to open his own business in the area of ​​mergers and acquisitions, and Deitos also left the company for a new operation.

The partners detected an opportunity in Brazil to create the business. Enck only worked with companies with revenues between $ 50 million and $ 1 billion, but he frequently received contacts from new companies in search of investors. On the other hand, individuals with ample resources available and in search of opportunities contacted them often.

Deitos initially worked with fintechs and technological platforms. When they met, they came up with the idea of ​​joining their experience, using a tech basis to bring together investors and new companies. “When we discussed this with Peter Englert of Starse, he said he would like to participate, the perfect storm was formed,” says Enck.

Now the goal is to popularize investment in startups. “This segment has always been connected to large players, such as venture capital and investment funds, but now it is available to everyone,” says Enck.