By Angelica Mari @ Startups.com.br
A venture builder Dream2B attracted US$ 10 million in investments to accelerate the internationalization of Brazilian startups at an early stage of development and boost their own global expansion.
Canadian fund investment Victory Square Technologies (VST) will be targeted at startups in future acceleration classes, as well as companies that are already in Dream2B's portfolio. Both the fund and the venture builder will have a variable percentage of the companies that stand out in the acceleration program, with checks ranging between US$ 250 thousand and US$ 5 million.
With the ability to invest, Dream2B enhances its value proposition. Headquartered in Vancouver, Canada and present in São Paulo and Florianópolis, the venture builder has already supported around 50 Brazilian companies to establish a presence in North America. The program includes immersions in Canada with travel expenses paid by the venture builder, as well as mentoring, business development and connections with companies, institutions and investors.
“[The investment] complements the thesis we already had, further increasing our reach”, says the founder and CEO of Dream2B, Regina Noppe, in an interview with Startups. According to Regina, the fact that Victory Square has a global presence also helps. “While our entry platform is in Canada, our goal is to expand globally.”
Global mindset
VST and Dream2B knew each other since the venture builder was founded in 2015. “Our relationship developed organically and mutually, as [the fund] began to realize the quality and seriousness of our work and our ability to attract great entrepreneurs ”, says Regina.
Conversations about a potential investment had been taking place between the parties for the last three years, according to the CEO. “We didn’t open a fundraising round, I always had in mind that I would only raise funds with an investor who has the same vision and is a complete fit with us – and that’s what happened with VST”, he adds. In the last 6 months, negotiations accelerated and with travel to Canada becoming more flexible, Regina traveled to the country to close the deal.
Commenting on the factors that led her to conclude that Victory Square was the ideal partner for Dream2B, Regina says that, in addition to capital, the most important factor was the possibility of offering continued international expansion to startups in the venture builder's portfolio .
“With this partnership, after our program, startups that are ready for expansion will be able to count on strong investments made by our fund, and also count on a first-class team that can open doors for them globally”, says the CEO.
Regina says her admiration for Victory Square chief executive Shafin Diamond also counted points. “He has a global mindset and believes in portfolio diversification beyond what the vast majority [of the investment community] are looking at. He is a visionary and this is reflected in the success of his portfolio”, he adds.
Before closing a deal with VST, Dream2B had some conversations with Brazilian funds, but concluded that a global partner would be a better option. “Having an investor abroad has always been our priority due to the nature of our business, which focuses on international expansion”, highlights Regina.
Companies that Dream2B has supported through seven acceleration cycles include the artificial intelligence company Date H, which moved its headquarters to Canada and also became a venture builder. Other startups that went through the program include biotech SafeTest – which was also supported by Victory Square – as well as HRtech Solids and the ZeroBank, blockchain. The portfolio also includes companies active in virtual and augmented reality, as well as cannabis.
New batch from Dream2B
For the seventh batch of acceleration, the venture builder will select up to 10 Brazilian startups operating in the areas of artificial intelligence, blockchain, Web3, with a focus on digital health, cleantech and immersive technology. In addition to fluency in English, representatives from participating companies need to be able to scale globally and have an international expansion plan.
In addition to the chance to receive an investment, participating startups will be able to apply for a startup founder visa that grants permanent residency, through a partnership between Dream2B and the Spark Centre. Brazilian startups that meet the acceleration program criteria can sign up until March 31st, and the startups to be accelerated will be announced until April 4th.
