Brazil’s GovTech Fund, jointly managed by KPTL and Cedro Capital, has opened applications for startups developing technologies that modernize public services, offering investments ranging from R$2 million to R$5 million. Announced in September 2026, the initiative targets innovative businesses addressing challenges in public administration, government efficiency, and citizens’ quality of life. The investment drive forms part of the fund’s strategy to expand its portfolio and strengthen Brazil’s public-sector technology ecosystem.
Investment Criteria and Eligible Startups
The fund is primarily seeking startups generating more than R$70,000 in monthly revenue, with annual revenue capped at R$20 million. Eligible companies can operate under business-to-government (B2G), business-to-business (B2B), or hybrid models, provided their solutions address challenges relevant to the public sector. Selected businesses may also receive follow-on investments beyond their initial funding commitments.
The investment mandate covers healthcare, education, public safety, housing, urban mobility, infrastructure, and climate resilience. Additional areas include smart cities, citizenship, regulatory technology, urban planning, and public administration. Rather than restricting investments to companies selling directly to government agencies, the fund also considers technologies that generate measurable public benefits through private-sector customers.
Strengthening Regional Innovation Ecosystems
The selection process prioritizes startups operating in Rio de Janeiro, Rio Grande do Sul, Goiás, and São Paulo. These states participate in the fund through their respective development and research financing institutions, creating commitments to allocate part of the capital to regional businesses. In São Paulo, particular attention is directed toward companies connected to FAPESP’s Innovative Research in Small Businesses (PIPE) program.
This geographic approach combines venture capital financing with regional economic development objectives. By supporting businesses across several innovation ecosystems, the fund aims to expand the availability of technology solutions addressing public-sector needs. Regional commitments also help channel investment toward startups developing solutions for challenges encountered by local administrations and communities.
Existing Portfolio and Investment Activity
The GovTech Fund currently holds investments in eight startups spanning multiple technology sectors, with one exit process underway. Its portfolio includes Jovens Gênios, an education technology company offering adaptive learning supported by artificial intelligence and gamification. The company recently secured R$11.8 million in funding through a round led by the fund, supporting plans to increase its student reach from 1.3 million to 10 million by 2029.
Another portfolio company, Augen Engenharia, develops technology for monitoring and improving water treatment operations. Following a R$4 million investment from GovTech, the company was acquired by Biosolvit in a transaction representing the fund’s first exit. The final transaction value remains dependent on performance milestones through 2027 and could range between R$36 million and R$48 million.
Other investments include Prosas, Kinebot, i4sea, Colab, StartGI, and GRTS, which address challenges ranging from funding-program management and workplace analytics to climate risk assessment and government procurement. Together, these businesses illustrate the fund’s emphasis on technologies with applications across public and private institutions. The portfolio also demonstrates how the investment strategy extends beyond conventional government software providers.
Fundraising Strategy and Expansion Plans
The fund has secured R$107 million and aims to increase that amount to R$150 million by the end of 2026. Its investor base includes regional development institutions, while Potencia Ventures has also joined as an impact-focused investor. Additional fundraising is expected to support a broader investment strategy, with the fund targeting an increase from eight portfolio companies to 18 over the coming years.
According to Adriano Pitoli, head of the GovTech Fund at KPTL, its investment pipeline already includes more than 1,400 startups. The new application process is designed to identify additional businesses as emerging technologies create opportunities to improve public services. Generative artificial intelligence is among the developments contributing to the growing range of potential investments.
The GovTech Fund’s latest investment call reflects its ambition to finance technology companies that can improve government operations and address wider public challenges. With investment checks reaching R$5 million, the initiative provides growth-stage startups with access to capital while reinforcing regional innovation priorities. Its planned portfolio expansion and fundraising targets position the fund to broaden its involvement in Brazil’s evolving government technology market.