Impact Investing in Brazil

For my benefit as much as your own, let’s briefly revisit my role in Brazil. More on this in my first post. As a Village Capital (VilCap) representative here in Sao Paulo, I am working directly with its portfolio company QMagico. This edtech startup is one of 10 social businesses accelerated by Artemisia Negocios Sociais in a Village Capital-like peer support process, and one of two VilCap investees in Brazil. This post as well as the remaining five months of my foray into the impact investing field in Brazil go out to them!

What? QMagico uses a platform with static content coupled interactive exercises and data analysis features to flip YOUR classroom into a blended learning paradise. But, really, all edtech jargon aside, think a Brazil-grown Khan Academy-inspired online learning platform covering the national curriculum and complete with a suite of features for a personalized learning experience. Some sources of inspiration for QMagico and like-minded edtech businesses include the U.S.-based Education Elements, Knewton and Grockit. Like most successful businesses, QMagico has been observing its market, picking the top ideas of best practices observed, and weaving it into an innovative product offering and business model of its own. QMagico’s CEO Thiago, previously a founder of two educational NGOs, deliberately opted for a for-profit business model to go after more scalable impact.

Why? Because improvements in education, especially aimed at primary and secondary schooling, drive economic and social development. On the macro level, they promote sustainability of investment and drive innovation. Social development effects materialize in better overall public health, lower population growth rates, greater human rights and liberties, a safer society with less poverty and more equitable opportunities for its citizenry. Oh, the enthusiasm of us development kids…

How? Any a critical-thinking skills-equipped person would question the potential social impact for the Bottom of the Pyramid (BoP) of anything that relies on technology reserved for those who can afford it. Fair enough, not all Brazilian schoolchildren have access to computers and the Internet, actually far from it. To address the issue, Qmagico spares no effort to scout complementors in the education sector, be it NGOs, foundations or government entities, to help it deliver its product with the technology needed for its utilization to suit.

For an interesting source on applying learning management systems in the classroom, check out the Blend My Learning blog.

To close, here’s the feel-good educational video of the day: