With just one year of operation, the PPA Acceleration Program (Platform Partners for the Amazon) has much to celebrate. The 15 accelerated businesses throughout 2019, selected from among 81 registered in a call prepared for this purpose, together promoted the preservation, restoration and/or sustainable management of 873,000 hectares of the Amazon Forest.
The businesses generate 251 direct jobs, and 67% of them have women in the lead. In all, 43 municipalities and five states are positively impacted by its activities, benefiting 110 communities.
The accelerated group today forms a network of impact entrepreneurs in the Amazon, with opportunities for cooperation and networking.
“Already in its first year of operation, the PPA Acceleration Program gained recognition and became a reference for the ecosystem of business and impact investments in the Amazon. We won the 4th Incubation and Impact Acceleration Challenge of Anprotec (National Association of Entities Promoting Innovative Enterprises), and we were considered the best program in the northern region. We consolidated a good business portfolio and stood out in articles published by Forbes, Folha de São Paulo, Pequenas Empresas Grandes Negócios magazine, Exame magazine, among many others, which brought us national recognition”, assesses Mariano Cenamo, director of new business at the Idesam, the institution that implements the Acceleration Program.
Strengthening the ecosystem of business and impact investing in the Amazon
The Program invested R$ 1,870,000.00 in accelerated businesses in 2019. Some startups participated in a business round with investors, which raised more R$ 1,100,000 invested by USAID, Conexsus, NESsT, SITAWI and Denis Minev in the Manioca businesses , Ração +, Peabiru Forest Products and Amazon Vegetable Casings.
For 2020, the call that selected the 15 businesses participating in the new acceleration group received 201 entries, more than double the number of the previous year. Several of the entrepreneurs also participated in a business round with investors, which totaled R$ 4.8 million invested in nine of the 15 projects in the class of 2020: In Floresta, Coex Carajás, Oka Sucos, Prátika Engenharia, Tucum Brasil, Academia Amazônia Teach, NavegAM, Manioca and Onisafra. The investors were SITAWI, USAID, Conexsus, Fundo Vale, Instituto Humanize, FIIMP, Grupo Rede Amazônica and Althelia Funds, almost all members of PPA.
This expansion in the number of subscribers and the amount dedicated by investors to these businesses points to the strengthening of the Program. The 15 selected to participate in the acceleration in 2020 are already preparing to start the journey this month.
The new business portfolio is more diversified, including initiatives located in the states of Amazonas, Pará, Mato Grosso, Rio de Janeiro and Santa Catarina. For the first time, Call for Business opened the possibility of registration for companies headquartered in other regions of the country, as long as they are willing to open an address in the northern region within six months after the beginning of the Program.
The initiatives are connected with 14 of the 17 Sustainable Development Goals (SDGs) for the 2030 Agenda. The selected businesses bring solutions in: sustainable agriculture and livestock, forest management and production, environmental products and services, education for the conservation of the environment, mitigation and adaptation to climate change, among others.
“The Acceleration Program is an important model for the Amazon, because it is preparing entrepreneurs and social businesses to have sustainable growth and, at the same time, produce results involving communities and preserving the forest. If we want models that replace an economy of illegality or not sustainable, we need to support businesses, startups, ideas that move in this direction. And this program is doing that”, assesses Ted Gehr, director of USAID Brazil, a strategic partner of PPA.
Innovation and networking
One of the peculiarities of the PPA Acceleration Program is its customization in accordance with the needs of entrepreneurs in the Amazon. And also the co-creation with an extensive network of partners and with the first accelerated group. Some of the entrepreneurs had already participated in other acceleration journeys, but reported that none of them was so attentive to the region's peculiarities.
A network of supporters and partners has also supported and actively participated in the design of the Program, which is constantly evolving and adapting to business needs. Companies, civil society organizations and private social investors (philanthropy) participate in this network.
“We believe in strengthening the Amazon region's economy by supporting businesses with impactful solutions based on sustainability. The PPA Acceleration Program is an excellent opportunity to strengthen innovative initiatives that generate income and value biodiversity. These are businesses with inclusive and fair practices, which preserve the environment and increase the economic development of the entire region,” says Márcia Côrtes, sustainability manager at Instituto Humanize.
This mix of companies, organized civil society and philanthropy is also present among the investors mobilized for the business roundtables promoted by the Program. For early stage ventures, it is often difficult to find investors who work with tickets for smaller amounts, which makes it difficult for businesses in early stages to access resources, which need smaller contributions to run. This is also an important contribution of PPA to these startups, as indicated by Andrea Resende, director and head of impact investing at SITAWI.
“SITAWI has a history of partnering with PPA and other projects focused on impact investing and sustainable development in the Amazon. Supporting the development of new sustainable business models in the region is one of our priorities. This work of PPA, of bringing together different types of investors and capital to make financing these businesses possible, is fundamental, because companies and businesses will only become big if they have the first, second check. We are happy to further expand SITAWI's participation in this new round, with technical support in the selection and evaluation of businesses and as the main investors”, he assesses.
>> Discover the businesses selected for acceleration in 2020
About PPA
The Partners for the Amazon Platform (PPA) is a platform for collective action, led by the private sector, that seeks to build innovative, tangible and practical solutions for sustainable development, conservation of biodiversity, forests and natural resources in the Amazon. It operates through four thematic groups (GTs): (1) Entrepreneurship, impact investing and sustainable business acceleration; (2) Strategic investment opportunities, based on tax incentives and bioeconomy; (3) Partnerships between companies and communities in local value chains; (4) Interface with public policy and legal responsibilities.
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