BNDES Creates IoT Investment Fund

  • The fund may may exceed R $80 million
  • This fund will be specific to small and medium-sized companies

According to a report by Ourbitcoinnews, the National Bank for Economic and Social Development (BNDES) has announced for the creation of a fund that will focus exclusively on investments in IoT (Internet of Things) projects. As per the report, the fund may exceed R $80 million.

The report said that according to BNDES, the fund will be specific to small and medium-sized companies. It will be managed by its wholly owned subsidiary BNDESPar. This subsidiary invests directly in companies.

Qualcomm Ventures

The report said that the fund will have Qualcomm Ventures, an investment arm of the American group Qualcomm Incorporated. The institutions will start a Participation Investment Fund (FIP) in the category “Seed Capital” as per the report.

As per the report, the agency wrote that “BNDESPar may contribute up to R $ 40 million. It will have a limit of up to 25 per cent of the fund’s total committed capital. It also said that Qualcomm Ventures has expressed interest in investing the same amount of funds.

National Internet of Things Plan

As per the report, the investment period in the BNDES Internet of Things fund will be in the first five years. The term has been set at 10 years and is renewable for another 24 months.

The ‘National Internet of Things Plan’ was created earlier this year in Brazil by Presidential Decree No. 9,854. According to BNDES, proposals will be evaluated according to criteria defined in the Public Call Notice. It will include the history of the company and its managers. Other than this, there will be evaluation of staff, prospecting strategy, methodology, fundraising and fund costs.

Three phases of selection

The minimum equity of the interested companies must be at least R $ 120 million as per BNDES. The selection process will have three phases of elimination, classificatory, oral presentations and final selection.