Market representatives and regulators from several Southeast Asian countries gathered in Malaysia for a World Bank conference to discuss, among other topics, the inclusion of small and medium-sized enterprises (SMEs) in capital markets.

ANBIMA was invited to showcase the different mechanisms available in Brazil for SMEs. “The evolution of Brazil’s capital markets has enabled the emergence of new sources of direct investment in the economy, driving the country’s economic development and technological innovation,” said ANBIMA CEO Zeca Doherty, who gave two presentations on the topic during the conference.

Two mechanisms were particularly highlighted in the presentations: crowdfunding and structured investment funds, especially FIDCs. Crowdfunding, regulated by the Securities and Exchange Commission of Brazil (CVM) in 2017, has since become a solid source of funding for startups and small companies seeking capital to finance innovative projects, particularly those unable to access traditional credit options.

To illustrate the market’s growth and significance, the amount raised through investment crowdfunding increased from R$8 million in 2017 to over R$130 million in 2022. “These transactions benefited sectors such as agribusiness, renewable energy, and technology companies, among others,” Doherty noted.

He further emphasized that the increasing sophistication of Brazil’s capital markets has paved the way for structured investment funds to support SME financing, particularly FIDCs. “This is an extremely important industry for SMEs, and the numbers speak for themselves,” he said, citing that FIDCs alone represent 9% of Brazil’s fund industry. The sectors financed by FIDCs are diverse, including agribusiness, commerce, and financial services.