Brasilia, October 20, 2023.
The Venture Capital firm has teamed up with Ligocki Entretenimento to launch the country’s first investment fund dedicated to the entire Brazilian audiovisual sector; the initial goal is to raise R$100 million.
Cedro Capital is expanding its investment operations in an innovative way by entering the audiovisual industry in partnership with Ligocki Entretenimento. Together, they launched Funcine Cedro Ligocki, Brazil’s first investment fund dedicated to the entire audiovisual sector chain, with an initial fundraising target of R$100 million.
Funcine Cedro Ligocki aims to invest in various areas of the audiovisual sector, including the acquisition of stakes in companies, investments in audiovisual productions such as films, series, documentaries and animations, as well as infrastructure and facilities such as studios, equipment and exhibition halls. The diversification of the portfolio proposed by the Fund tends to give the investor a better chance of achieving a financial return than if the funds were invested in a single project.
The audiovisual sector has undergone significant transformations in recent decades, driven by technological advances, changes in media consumption habits and the growing demand for quality content on digital platforms.
At Cedro, which has been investing in startups for 10 years, it will be the first vehicle of its kind. “It’s a chance to invest a portion of your income tax in the Brazilian audiovisual chain and get a financial return and brand exposure in return,” says Bruno Brito, managing partner of the management company
Created in 2003, the FUCINES – funds for financing the national film industry – opened up the possibility for investors to deduct their income tax in order to promote the national cultural industry. In the case of individuals, up to 6% of their income tax and, in the case of companies, up to 3%.
“Cedro Capital is an asset management firm that operates outside the Rio-São Paulo axis, combining an innovative outlook with experience in Venture Capital. In addition to being able to identify promising companies, he dives headfirst into the development process, walking side by side with the entrepreneurs to turn each project into a success,” said Marcus Ligocki Jr, managing partner of Ligocki Entretenimento. Among other high-profile projects, Marcus produced Pureza, a feature film starring Dira Paes and winner of 30 national and international awards. His expertise and talent will contribute to the development of successful audiovisual projects in this partnership.
Funcine Cedro Ligocki aims to be a differentiated investment vehicle to support the Brazilian audiovisual ecosystem in expanding the reach and profitability of its works. “As Brazil is a country that creates empathy around the world through its unmistakable cultural personality, investing in increasing the competitiveness of its audiovisual industry, which represents the most influential means of communication in the contemporary world, means amplifying Brazil’s Soft Power,” said Marcus Ligocki Jr.
In this first phase, the fund’s goal is to raise R$100 million and, from there, carefully select the projects to follow up, aiming for significant results for investors, entrepreneurs and the Brazilian economy.
Investors in this type of fund benefit from the tax deduction provided for in the Audiovisual Law. Legal entities taxed under the Real Profit regime have the benefit of investing in Funcine with the funds they would have paid in taxes (tax benefit of up to 3% of the Income Tax due). In other words, the investment in Funcine quotas can be 100% deducted from the Income Tax due.
The audiovisual sector is an intrinsic part of a country’s identity. It promotes culture, economy, creativity, personal expression and education. Its importance transcends national borders, connecting people from all over the world through a universal language. Therefore, investing in and supporting this sector of the economy means investing in Brazil’s development and in its global interlocution in this increasingly interconnected world.
“When an investor gets involved in the audiovisual sector, it contributes to business development and stimulates additional economic activity in the country. This is because the film market drives other commercial transactions, as each film produced generates demand for various services, creating a significant impact on economic activity,” Marcus emphasizes.