The new fund, called BB Ventures 2, will target AI startups alongside the Brazilan bank's usual focus on fintech, agritech and govtech.
Brazilian financial services firm Banco do Brasil has set up another corporate VC fund, BB Ventures 2, that will add investing in AI to the company’s original focus of backing fintech, agritech and govtech startups.
The R$115m ($20m) fund will be run by MSW Capital, a Brazilian investment firm that expands its remit beyond multi-corporate vehicles into managing dedicated funds for large companies.
The new fund brings in and additional focus on AI to Banco do Brasil’s usual startup funding remit. It will also participate in later-stage rounds, including series B financings, alongside its existing late seed and series A activity.
Cheque sizes are expected to range from R$5m to R$15m, with flexibility to invest up to R$25m in some deals. MSW expects the fund to complete at least six investments over the next three years, while reserving capital for follow-on rounds.
The new BB Ventures 2 fund is in addition to the BB Ventures corporate venture fund that Banco do Brasil established in 202o. Last year the bank doubled the capital in that fund to R$500m ($94m).
