EMBRAER S A : invests in a fund managed by MSW and strengthens its Corporate Venture Capital program

The company joins Moura Batteries, BB Seguros, and Age-Rio at MSW MultiCorp2 to boost startups that operate in the aerospace, agro, and cargo-logistics markets

São José dos Campos, Brazil, January 27, 2023 – Embraer announced today an initial investment in the MSW MultiCorp 2 of R$ 20 million (around US$ 4 million), to attract and boost innovative Brazilian startups that synergize with the company’s innovation strategy. Embraer has strengthened its role in promoting entrepreneurship in the Brazilian ecosystem, not only by making investments but creating partnerships with entrepreneurs interested in working collaboratively.

MSW MultiCorp 2 is managed by MSW Capital, a Venture Capital manager and a pioneer in Brazil specialized in Corporate Venture Capital. This is MSW’s second Multi-Corporate Venture fund. The model developed by the manager allows large corporations to invest in startups in a strategic and structured way. Upon entering the fund, Embraer joins Moura Baterias and BB Seguros in expanding the fund’s investment focus areas in Insurance and Energy for startups with digital and platform solutions for the aerospace, agro, and cargo-logistics sectors.

“Our mission is to co-create the future of Embraer, the invested, and the ecosystem through jointly designed innovation. In this way, via Embraer Ventures, we seek to leverage the company’s innovation strategy and we are excited to be able to collaborate even more with the country’s entrepreneurial force,” said Daniel Moczydlower, Head of Innovation at Embraer and CEO of Embraer-X.

MSW MultiCorp 2 will always invest as a minority in startups in seed and series-A stages with checks between R$3 million and R$15 million in businesses where it is possible to generate value with the impetus of Embraer and/or other investors in the fund. An Impulse Plan will be carried out for every investee company, a way in which the fund leverages the startup business and brings innovation to the corporations. Startups that fit this profile and in the indicated markets can send their decks directly to the manager.

From Richard Zeiger, co-founder at MSW: “Embraer is one of Brazilian companies that best represents entrepreneurship and innovation on a global scale. Having the opportunity to strengthen the company’s CVC program is a very important milestone for MSW and a privilege. This investment consolidates our MultiCoporate model, where we gather more than one corporation into a venture capital fund. And we go in search of the best entrepreneurs who are creating solutions in the markets in which corporations operate or aim to operate at some point.”

Photo:Embraer DAM (bynder.com)

Daniel Moczydlower, head of innovation at Embraer (center), alongside Moises Swirski and Richard Zeiger, co-founders of MSW Capital.

Embraer Ventures Fund

Embraer sees its Corporate Venture Capital Program (CVC) as an approach that allows for the promotion of adjacent and transformational initiatives, in an agile way, leveraging external resources and sharing risks to explore new business models and accelerate the development of emerging technologies.

Embraer Ventures allows the company to strategically invest in minority stakes in startups. In 2014, the company started the first CVC fund, FIP Aeroespacial, which has already been fully invested, and in 2018, the company invested in the Catapult Ventures Fund, headquartered in Silicon Valley, in the United States, expanding the geographic reach of investments in high technology and innovation. The investment in MSW MultiCorp 2 came to further strengthen the company’s CVC program as a whole, mainly in Brazil in investments in startups in earlier stages.

About Embraer

A global aerospace company headquartered in Brazil, Embraer (NYSE: ERJ) has businesses in Commercial and Executive Aviation, Defense & Security, and Agricultural Aviation. The company designs, develops, manufactures, and markets aircraft and systems, providing after-sales service and support to customers. Since it was founded in 1969, Embraer has delivered more than 8,000 aircraft.

On average, every 10 seconds an aircraft manufactured by Embraer takes off somewhere in the world, transporting more than 145 million passengers a year. Embraer is the main manufacturer of commercial jets with up to 150 seats and the main exporter of high value-added goods in Brazil. The company maintains industrial units, offices, service centers, and parts distribution, among other activities, in the Americas, Africa, Asia, and Europe.

About MSW Capital

MSW Capital is a venture capital manager specialized in Corporate Venture Capital that invests in early stage startups. It is the first manager in Brazil to look to corporations as business partners and to structure and manage multi-corporate or proprietary corporate venture capital funds. Dedicated to enhancing the relationship between corporations and startups, based on a relationship of trust and aimed at generating value for both. Among its main clients/investors are corporations such as Banco do Brasil, Microsoft, Bayer, Algar, Moura Batteries, Banco BV, Qualcomm, Monsanto, Age-Rio, BB Seguros and Embraer. And, among its main portfolio companies are Olivia, Car10, Carflix, Tbit, Árvore Educação, Taranis, and Fabric.

Share: