Roundtable on legal framework for Impact Investing in Brazil

29th of April 2014: Roundtable on legal framework for Impact Investing in Brazil in cooperation between the University of St.Gallen and Insper, and moderation by  Prof. Peter Sester

From left to right:  Luisa Ribeiro, Rodrigo Menezes, Peter Sester, Luis Eugênio Junqueira Figueiredo, Ana Luisa da Riva

On the 29th of April the Hub office of the University of St.Gallen and Insper organized a roundtable on the challenges of the legal framework for Impact Investing in Brazil. The moderator of the event was Prof. Peter Sester, who holds the Chair of International Business Law and of Law & Economics at the University of St.Gallen. The event was attended by representatives of various Impact Investing related institutions. 

Angélica Rotondaro from the HSG Hub São Paulo opened the session by welcoming the participants and presenting the speakers to the audience, followed by an outline of the roundtable’s objectives by Professor Sérgio Lazzarini (Insper). 

Rodrigo Menezes from Derraik & Menezes Advogados, a Brazilian full service law firm, initiated the roundtable by explaining the challenges and the importance of a regulatory framework for Impact Investing in Brazil. He reviewed the current situation of the entrepreneurs and investors as the most relevant agents for the regulatory framework and pointed out the three major drivers for change: improvement of the existing legislation, dismantling bureaucracy, and legal security. He finished his session with  two provocative questions: “Do we need a change in the regulatory environment of impact investing or in the regulatory environment in general?”  and “Do people [entrepreneurs] know the mechanisms that are already available to them to facilitate their businesses?”. Next, Ana Luisa da Riva, director of the Semeia Institute, presented the current situation of the protected areas in Brazil and the high potential to generate positive impact by engaging the government to establish an adequate legal framework that stimulates and supports both entrepreneurs and investors. She also indicated the role of Semeia in studying successful foreign cases, generating data, and testing models in order to foster further regulatory framework development and adaptation. Luisa Ribeiro, the founder of Papaya Ventures, a startup accelerator, elaborated on the mission of accelerators. She started by explaining the business model and how startups can be supported. Subsequently, she outlined the phases that accelerator and startup have to pass jointly in order to develop the business. Luiz Eugênio Junqueira Figueiredo, Vice President of ABVCAP (Brazilian Private Equity & Venture Capital Association), talked about the organization’s mission in promoting the development, sustainable growth and market integration of long-term investments. In addition, he presented ABVCAP’s executive committee of regulation, its project Projeto 600, the accomplishments so far and the future plans. 

Peter Sester wrapped up the roundtable by picking up the key points of each of the speakers and stressing the implications for the legal framework for Impact Investing in Brazil. Afterwards, the floor was opened for discussion and comments. 

A special thanks goes once more to all our speaker that enriched the current discussion on legal framework with their valuable insights.