Investor Presentaiton

Conclusions & Recommendations Conclusions & Recommendations In spite of the challenging economic and political situation in Brazil in 2016-2017, impact investing in the country appears to have been fairly resilient, based on the following data: • Seven investors made their first impact investment in Brazil during 2016-2017, with four of these being Brazil-based. • Investors that reported deals in both 2014-2015 and 2016-2017 invested more capital in more deals than in the previous period. Impact investing also relatively diverse in Brazil, with a large number of sectors receiving investments in 2016-2017. On the other hand, impact investing still represents a small part of the Brazilian capital markets. The total invested in private equity & venture capital in Brazil in 2016-2017 was $6.8B, across 332 deals, according to industry research'. The size of the overall PE/VC market and the relatively high levels of socioeconomic inequality in Brazil suggest that there is considerable scope for impact investing in the country to grow further. However, for the sector to realize this potential, significant challenges remain. The challenges most commonly cited by investors relate to fundraising, ecosystem players and appropriate investment vehicles. Additionally, the high concentration of deals with ticket sizes below $250,000 and above $1m risks leaving those start-up impact businesses looking for resources in between these extremes and lacking access to capital. 1. https://exame.abril.com.br/economia/abvcap-investimento-do-setor-de-private-equity- somou-r-152-bi-em-2017/(exchange rate used: US$1 = R$3,90) 32 2

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