Executives from global investment firms outline what the country must do to strengthen its business environment
08/21/2025
“If you build it, they will come.” The line made famous by the 1989 film Field of Dreams is repeated several times during a lively conversation at the Nonno Ruggero restaurant in the Hotel Fasano, São Paulo. But this is not a gathering of film buffs or art critics. Organized exclusively for Valor by the team behind the mega innovation event SP2B, the lunch brought together executives from some of the world’s largest investment companies.
The guests were Michael Safdie of Springhill Ventures (Israel), Jason Tan of Jeneration Capital (Hong Kong, Asia), and Pogos Saiadian of Greyhound Capital (Europe). Brazilian host Bernardo Zamijovsky, of VR Investimentos and one of the curators of SP2B, welcomed the group. Later that evening, Ricardo Kanitz of Spectra Invest (Brazil) joined them for a debate at SPHall.
On both occasions, the executives discussed how Brazil can become more attractive to international investors, particularly those interested in digital transformation ventures.
In short, the country faces four main challenges: high interest rates, exchange rates that disadvantage start-ups, a shortage of engineers, and the absence of models and organizations that integrate government and private capital under a unified innovation strategy.
As in the film, in which a farmer builds a baseball field on his land after hearing a mysterious voice—ultimately drawing legendary, long-deceased players to a historic game—the perception is that if Brazil lays the necessary groundwork, investors will come.
Below are the main topics discussed at the meeting:
Shortage of professionals
Between 2015 and 2022, approximately 6,500 Brazilian scientists left the country to work abroad, according to the Center for Strategic Studies Management, affiliated with the Ministry of Science, Technology, and Innovation. The main reasons are a lack of investment and frozen scholarships. In information technology, particularly among engineers, training remains insufficient. An estimated 159,000 graduates are needed each year, but only 53,000 currently complete their studies. This gap could result in a shortage of 106,000 professionals by 2029.
“We are exporting engineers, even though there is a shortage in the local market,” says Mr. Zamijovsky. Many remain in Brazil but are under contract with Big Tech companies, he adds.
In Southeast Asia, the problem is similar. In Indonesia, for example, too few engineers graduate, says Mr. Tan. To avoid this risk, countries such as China, India, and Israel invested heavily in training programs—and succeeded, he notes.
In Hong Kong, talented professionals can even obtain citizenship in just one year through a government program. “You have to start with the people. Otherwise, the [investor’s] money comes into the country, but it doesn’t stay.”
Local or global?
Even with the war in the Middle East, geopolitical risk has not affected the investment environment in Israel, says Mr. Safdie. The reason? “All companies are created with an international focus, mainly on the U.S.,” he explains, both in terms of consumers and fundraising.
“In terms of raising capital for Israeli high-tech companies, in the first half of the year alone we reached $10 billion—the same as the United Kingdom, close to China, and above India,” says Mr. Safdie, who is the son of a Brazilian father and speaks Portuguese fluently.
Is it mandatory for entrepreneurs to have an international outlook from the outset? “It depends,” replies Mr. Safdie. “If it’s a B2C company, definitely not, because there is a huge consumer market in Brazil. But if you look at the B2B market, you still need to focus abroad.”
Entrepreneurial qualities
“We look for three things,” says Mr. Saiadian. “One is being customer-obsessed. We notice this when we talk to the entrepreneur and they mention the customer and the problem to be solved several times. The second is being product-obsessed, with a focus on details and quality. Finally, it’s being very execution-oriented and moving quickly.”
Brazil operates in cycles, with several funds arriving simultaneously and then departing. “It becomes a desert.” Execution, he stresses, is even more important in these periods.
Interest rates and currency
“The volatility of our exchange rate is one of the biggest obstacles to attracting foreign investment in Brazil. We have experienced one of the most extended cycles of the dollar’s appreciation against other currencies, which has lasted more than 15 years. Many investors believe it will last forever. This perception drives capital away from Brazil to other emerging markets,” says Mr. Kanitz.
For Brazilian investors, the challenge is the interest rate, says Mr. Zamijovsky. “Even though the return on venture capital is attractive, the interest rate is 15% per year.” By comparison, the rate is 4.5% in Israel and 3% in China.
Quantity and price
Brazil has an advantage in the volume of customer purchases provided by its vast population, but the same does not apply to prices, notes Mr. Saiadian. Digital banks, for example, already have hundreds of millions of customers, demonstrating their numerical strength, but there are limits to what they can charge.
Greyhound Capital invested in a Japanese company that added new features to its software to the point where some customers now pay $1,000 per month for the service. In Brazil, customers value new features, but the ceiling is typically around $35.
Public and private
The innovation chain in Brazil will only be complete when there are models that integrate government and the private sector. This is a consensus position.
In Israel, according to Mr. Safdie, the Office of the Chief Scientist acts as an intermediary with an annual budget of approximately $500 million. The United Arab Emirates and Saudi Arabia have created incentive programs for companies that set up operations in the country or hire local staff, says Mr. Tan.
“It is essential to establish an international hub, such as Silicon Valley in the U.S. That is what we are going to try to do. São Paulo meets these conditions,” emphasizes Mr. Zamijovsky.