Sai do Papel adds venture debt to R$20M fourth fund
What's the deal? Sai do PapelDealroom has a profile for this one. Try Dealroom →, a Rio de Janeiro innovation group, has reached its fourth venture capital fund with R$20 million under management — and is shifting to a venture debt model. Chief executive Carlos Junior told Startups the vehicle now goes beyond equity, adding debt structures to give investors more liquidity and portfolio startups more stability.
How it works? The firm structured a convertible loan yielding above Brazil's CDI benchmark but below bank debt rates, with capital redemption available from the first year. For founders, terms include a one-to-five-year grace period, below-market cost, and no collateral, unlike traditional bank credit.
Why now? The change reflects lessons from the fund's history since its first R$2 million vehicle in 2017. Of nearly 30 portfolio companies, fewer than 10% were written off — but half returned little, growing without becoming attractive for acquisition or paying dividends.
What's the endgame? The portfolio now targets scaling rather than validation. Its companies bill between R$1 million and R$2 million a year and grow 50% to 100% annually. "The money we put in is money more for scaling and not for validating," Carlos said.
The thesis is multi-sector and includes the real economy, not just tech startups; investments include headphone maker Kuba. Companies outside the thesis can still get backing through club deals, where the startup sets the terms.
The bigger picture: Investing is one of several fronts for the group. It runs the Arca Hub, which recently moved to a 700m² space in Copacabana's Shopping Cassino Atlântico with more than 70 workstations. Sai do Papel also helps run the Maravalley innovation hub and co-organises the Rio Innovation Week, expected to draw around 200,000 attendees between August 4 and 7.
The signal: Sai do Papel's pivot points to a wider rethink among boutique investors backing solid but non-blockbuster startups. When equity exits stall, hybrid debt structures offer a way to return capital without waiting on an acquisition that may never come.
Read more: Startups
