Brazil's National Bank for Economic and Social Development (BNDES) and the Brazilian Innovation Agency (Finep) have selected Monashees Gestão de Investimentos to manage a new investment fund dedicated to artificial intelligence startups. The public call attracted 17 proposals, and the selection considered criteria such as track record, team, investment thesis, fundraising capacity, fund costs, and alignment with targeted companies. The initiative is part of the Brazilian Artificial Intelligence Plan and aims to mobilize up to R$ 500 million.
Manager Selection and Next Steps
Monashees finished first in the competitive ranking, followed by Bossanova in second place and Patria High Growth in third place. The selected proposal will now advance to contractual evaluation, fund regulation negotiation, and legal due diligence. If the firm is disqualified during this stage, the remaining candidates may be called in the order of classification.
Capital Commitments and Structure
The fund is structured as an equity investment fund (FIP) with an estimated mobilization target of up to R$ 500 million. BNDESPAR, a wholly owned subsidiary of BNDES, may commit up to R$ 125 million, while FNDCT/Finep may contribute up to R$ 80 million. Each anchor investor will be limited to a maximum 25 percent stake, ensuring public capital acts as a catalyst to attract private investors.
AI as a Core Business Requirement
The vehicle will support startups that use artificial intelligence as a central element of their business model and value generation, rather than as an accessory tool. Eligible companies must require substantial investment in data, models, computational infrastructure, and specialized professionals to develop and operate their AI solutions. The main challenge is to expand the number, revenue, and global presence of Brazilian startups that are genuinely intensive in artificial intelligence.
Strategic Sectors and Regional Diversity
Priority sectors include agro-industrial chains, health, infrastructure, sanitation, mobility, logistics, digital transformation of industry, bioeconomy, decarbonization, carbon market solutions, energy transition and security, and technologies related to national sovereignty, defense, cybersecurity, and public security. Regional diversity will also be considered when selecting startups. Of the total amount invested by Finep, 30 percent will be directed to companies located in the North, Northeast, and Center-West regions.
Venture Capital Push and Manager Background
Monashees was founded in 2005 by Eric Acher and Fabio Igel and recently launched the Gama Fund in partnership with Google to invest in AI startups. The appointment adds a venture capital instrument to Brazil's federal AI strategy, complementing existing support for research, data, and infrastructure. Since 2025, Finep and BNDES have issued calls for four funds, and the manager for the Conexões Startups FIP will be announced in November after receiving 19 proposals.
The selection of Monashees moves the initiative from a competitive selection phase to actual fund structuring, with the final volume depending on the participation of additional private and institutional investors. BNDES president Aloizio Mercadante said the fund will create conditions for new innovative companies, talent formation and retention, and productivity gains for the Brazilian economy. Finep president Luiz Antonio Elias added that Brazil must go beyond using foreign AI technologies and develop national capabilities aligned with its strategic interests.