CVC foresees investments of R$ 300 million, in four years, through a fund managed by Citrino
In order to develop new mechanisms to take advantage of different and innovative investment opportunities, TOTVS – one of the largest technology companies in Brazil – announces a commitment to invest in Corporate Venture Capital (CVC). The objective is to allocate R$ 300 million, over the next four years, to investments in startups with high growth potential and capacity for innovation, through acquisitions of minority stakes.
The investment fund will have discretionary management by Citrino, an asset manager authorized by the CVM (Securities Commission). TOTVS will participate in the fund by appointing members to an advisory committee that will assist Citrino in evaluating investments and in the growth of investees.
“In recent years we have greatly expanded our scope of action, considering our three business dimensions – management, techfin and business performance. This has increased the number of interesting companies on our horizon. At the same time, there is a boom in startups developing new business models and new technologies. The fund's consolidation is a way to unite these two ends and develop a more sophisticated business environment”. Says Dennis Herszkowicz, CEO of TOTVS. “Investing in companies with high growth potential and total focus on innovation through minority stakes is an interesting new resource for TOTVS”, he adds.
Regarding priority segments, the fund should focus on investments in startups operating in the areas of healthcare, retail, manufacturing, financial services, agriculture and education. The fund will prioritize companies with high potential for innovation that work with the development of SaaS (software as a service) and/or with data management and traffic.
“The CVC will give us an additional option of strategic and financial investment, in a minority format, different from the M&A model we have already worked on. Citrino will act as an independent manager and with the power of decision, we understand that this is the ideal path”, concludes Herszkowicz.
