Unlocking Brazil's Productivity
Meet Raio Seed Fund II
Fund II Thesis
Investing in seed-stage, tech-enabled companies with innovative business models that push the productivity level across all sectors in the Brazilian economy
- Looking for solid teams fixing inefficiencies in large and expanding sectors
- Average holding period of 4 years, exiting mostly through local M&A and secondaries
Our Track Record
8M
Fund I Size (USD)
02
Exits
20
Investments
Clarice.AI
Closet Bobags
Doji
Grana
Instanteaser
Jaleko
Meetrox
Membran-i
Mightygreens
Mywork
NG.cash ⚡
Ouvidor Digital
Petchef
Purple Metrics
Quantzed
Quero Meus Direitos
Redação Online
Simbi
StopClub
Super Autor
Trampolin ⚡
Fund II Rationale
Seed-stage investing in Brazil is a multi-vintage opportunity that springs from the country's low productivity across all sectors, combined with a large and highly digital population
- Low productivity > pain points and bottlenecks > large and highly digitalized market > opportunity for innovators
- By utilizing already-developed technology to boost innovative business models, Brazilian startups can either disrupt or complement established businesses in traditional markets
Key Highlights
Our CEO breaks down our pitch deck below
About Raio Capital
Raio Capital is a VC firm from Rio de Janeiro, Brazil. We are a team of 5 partners with diverse skills that complement each other when analyzing potential investments with depth and clarity. We seek teams committed to solving real problems and creating lasting value.
Our approach is long-term – we believe success is the result of continuous work, built with care, where authentic relationships thrive, and processes are incremental.
We value honest and close interaction with our stakeholders. We want them to feel comfortable sharing their ideas and challenges, knowing we are here to listen and support without formalities or barriers.
Through authentic relationships, we aim to foster business growth and deliver returns to our investors. ⚡
Founding Team
FAQ
There different aspects to be analyzed here. (1) the Brazilian VC market is still young, and even the most well-known firms are still proving themselves from a return standpoint. (2) in order to affirm there is adverse selection, one would have to be able to analyze the deal flow going to all firms and establish the quality of what's incoming. (3) funding rounds are not that competitive in Brazil and there is a lot of co-investing (which we have done with some of the most well-known players). (4) the work of establishing high-quality networks with founders, other VC firms, family offices, innovation centers, among others, is key to any VC firm. (5) there are many great investment opportunities that are below the radar in Brazil. That is to say that, even though we are a young firm and began with limited access to quality deal-flow, the reality now is different. We have grown in reach and our deal flow has been constantly improving. This, combined with a differentiated analysis process, is leading to a healthy and solid portfolio.
We are, obviously, believers in VC as an asset class that any professional investor should be exposed to. Investing is all about trade-offs and finding asymmetries. In a high interest rate environment, where it is possible to get high returns at a low risk, firms are pressed since capital is more expensive. So, while LPs might be driven to allocate in fixed income opportunities, whoever invests capital into private companies tends to find lower valuations. We believe that a well-constructed portfolio should have predetermined allocations for different asset classes, geographies and managers. Having a portion of your portfolio dedicated to illiquid investments requires planning for the long term, entering into multiple vintages, and establishing long-term relationships with GPs. The current moment in the Brazilian market is set to provide one of the best vintages for well-prepared VC investors.