Having an idea and putting it on paper is just one of the stages of innovation. When implementing any stage of innovation planning, from a multinational to a small inventor, raising funds is a crucial phase in the search for the economic and financial viability of a project.

To be successful, the project must be significantly attractive to funding agents. With the increasing relevance of innovation in everyday corporate life, leading to increased productivity, business competitiveness and wealth generation for the country, supporting innovation has been a priority for several funding agents in Brazil.

Strategic resources: Finep

THE FINEP – Study and Project Financing Agency is a public company linked to the Ministry of Science and Technology and its mission is:

Promote and finance innovation and scientific and technological research in companies, universities, technological institutes, research centers and other public or private institutions, mobilizing financial resources and integrating instruments for the country's economic and social development.

FINEP's support covers the entire CI&T cycle, from basic research to the development of products, services and processes in companies. Its activities are carried out through several instruments:

• Repayable financing (loans with special conditions for companies);

• Non-Refundable Financing for Scientific, Technological and Innovation Institutions,

• Other forms of support for innovation (economic subsidy, investment operations and venture capital).

The support modalities can be offered directly by Finep or in a decentralized manner, through financial agents or state partners.

Main innovation challenges for Finep

Finep has funding of R$5 billion, plus an additional US$1.5 billion. The company finances various items, such as machinery, equipment (even imported ones) and its own staff. For Finep, the impact and novelty of the technology determine the interest rate. Financial support can be customized according to the degree of innovation and risk. Want a tip? The more innovative the project, the greater the support can be.

Finep itself highlights that it is a myth that innovation is synonymous with cutting-edge technology: among the lines supported by the institution are financing for the differentiation of products, processes and services; cost reduction; and even the dissemination of technologies.

Priority sectors include health and quality of life, chemistry, agribusiness and food, aerospace and defense, and oil and gas.

The main challenges that Finep intends to face through the promotion of innovation are:

• Provide the Brazilian economy with the capacity for innovation to face national and global challenges;

• Encourage the implementation of continuous R&D activities in companies;

• Support the insertion of innovative companies in national and global markets;

• Increase the competitiveness of Brazilian companies and institutions;

• Reverse the external vulnerability of national companies and institutions in technology-intensive segments;

• Stimulate the participation of private capital in innovation;

• Support innovations that promote sustainability.

Inovacred

An essential tip is the new Inovacred program: a financing line whose objective is to encourage small and medium-sized companies (revenue up to R$90 million per year) that want to develop a new innovation project, that is, they intend to invest in the development of new products and services or improve existing ones.

The great advantage of Inovacred is that it offers extremely attractive conditions in terms of interest, which average around 8 to 9% per year, a rate much lower than the vast majority of existing financing lines, even if we consider the programs with reduced interest from BNDES or other government banks.

Whether for large companies, which are looking for alternative ways to launch new products, or for smaller companies that want to open up the market, seeking resources is a daily challenge.

From the idea to the prototype and market test, the values applied can be fatal for the business. Therefore, understanding the objectives of the source that provides resources is a relevant and strategic point.

We, at 4C Innovation, are a company focused on implementing the innovation process, executing the project and supporting the search for funding resources. Check out our model that takes entrepreneurs on this journey of innovation, guiding them through important issues such as the market, technology and the finances of their project. With this, the product project begins with fundamental information for success, making your dream come true!

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