BS2 Ventures has been equipped with nearly $17m and is targeting startups that can help its parent bank serve SMB customers.
Brazil-based bank Banco BS2 officially launched a R$100m ($16.7m) corporate venture capital arm to strengthen the services it provides for small and medium-sized businesses (SMBs).
BS2 Ventures is targeting startups looking to address pain points in the corporate finance market, as well as those with products that may not be financial but can connect to a company’s financial processes. It will also consider technologies that are disruptive to existing banking practices such as credit, payments, foreign exchange and insurance.
The unit intends to invest the capital in the next 18 months, providing an average of R$5m for upwards of 12 to 15 companies. It also plans to make limited partner investments in three or four VC funds that are a good strategic fit.
Vinicius Bandeira de Mello (above), head of M&A and corporate development for Banco BS2, said in a release announcing the launch, that the bank expects to have allocated 20% of its initial capital by the end of this year.
BS2 Ventures has so far backed two Brazilian startups, real estate crowdfunding platform Bloxs and customer experience service provider Somos Young, as well as seed stage-focused VC fund Norte Ventures.
Several of Brazil’s large banks already maintain CVC funds, including Bradesco (Inovabra), Banco do Brasil (BB Ventures) and Banco BV, whose head of CVC, Eduardo Brussi, featured on GCV’s 2024 Rising Stars list.
