The decrease in production and productivity appear to be short-term negative impacts for the Brazilian economy; who can blame a worker taking time out to support his team for a tournament that only comes around every four years. On the bright side, a over one million jobs were created in order to host the cup games. Employees may expect to keep their work as Brazil prepares to host the Summer 2016 Olympic Games. The hospitality, retail, and media sector has thrived, now, more workers have been better trained and been using more advanced technology. The improved and expanded infrastructure will definitely bring long-term economic benefits for the Brazilin economy.
So where does crowdfunding lie between all of this? Has the World Cup increased the amount of capital being invested in Brazil through crowdfunding? Will there be an increase in domestic and international investors?
As the Germans are still celebrating their fourth World Cup win, it is still too soon to determine the direct impact the World Cup had on the Brazilian crowdfunding industry. However, there are many indicators, which point towards positive implications.
Crowdfunding is no new concept to Brazil, as it has been reputably present since the summer of 2010. Government regulations permit for a flexible and flourishing crowdfunding ecosystem. It is said that financial laws have similar principles to crowdfunding, thereby making it a simple procedure for people to borrow and lend capital. However it seems as though Brazil has not been exploited yet.
The potential lies domestically and internationally. There is a great domestic appetite present, just as much as there is international interest for Brazilian culture and innovation. This interest has most definitely grown over the past month.
There are currently, an estimated total of thirty Brazilian based crowdfunding platforms; many of which have sprung up since 2011. This ‘explosion’ of platforms in the country has led to much media and business attention.
Many US and European based crowdfunding platforms have started translating their websites into Portuguese to attract investors from Brazil. It seems that it is “a recognition of the importance of the Brazilian groundswell of interest,” as stated by crowdfunding journalist Janet Gunter. Unfortunately, not many Brazilian platforms have been translated into English, or any other language at that matter, nor have many platforms incorporated international payments systems yet. But, many sit appears that these restrictions will soon change.
Brazil will not stop at its own borders. Once larger platforms have the ability and capacity to take operations abroad, there are plans to integrate the rest of the South American continent, especially Latin America.
The future of crowdfunding in Brazil looks bright. The 2016 Olympic Games will hopefully further inspire the crowd to invest in Brazil and bring long-term economic growth and stability.
Bobb, S. (2014). Mixed Opinions About World Cup Impact on Brazilian Economy. voanews.com
Gunter, J. (2011) Brazil: Crowdfunding Potential. globalvoicesonline.org
Kiernan, P. (2014). World Cup Hit Brazil's Economy Hard. wsj.com
Photo Credits: Mike Vindran: bit.ly/p/5QxSDg
Jasmien is currently studying a bachelors in Business Studies from Cass Business School in London while interning at Crowd Valley. Originally from Belgium, she grew up in Switzerland, Ethiopia, USA, and Japan.
She is very passionate about the start-ups, entrepreneurship, technology, and travelling; she aspires to one day become an entrepreneur.