FINEP

FINEP runs two parallel tracks. The non-reimbursable track gives grants to universities, research institutes, and non-profit foundations for basic and applied research. The reimbursable track extends credit — often at subsidized rates indexed to Brazil's TJLP long-term interest rate — to for-profit companies developing new products or processes. Loan terms can stretch beyond 10 years with grace periods, making it effectively patient capital for hard-tech startups.

FINEP and BNDES are distinct federal entities with complementary mandates. BNDES handles large-scale infrastructure and industrial development lending, while FINEP focuses exclusively on science, technology, and innovation. They frequently co-sponsor joint public calls and co-finance projects, particularly in industrial innovation programs where a single company might take a BNDES infrastructure loan alongside a FINEP innovation credit line.

FINEP does both directly and indirectly. It extends direct reimbursable loans to startups and makes direct equity investments in select cases. Since 2000, FINEP has also acted as a limited partner in Brazilian venture capital and private equity funds, seeding the local VC ecosystem. The agency has backed funds managed by firms like Confrapar, DGF Investimentos, and TMG Capital, alongside unnamed seed-stage vehicles.

Sirius is a fourth-generation synchrotron light source located in Campinas, Brazil — one of only a handful of its class worldwide. FINEP funded and owns the facility because it doubles as national scientific infrastructure and a commercialization platform: pharmaceutical, agricultural, and energy companies use its beamlines for drug design, catalyst development, and material testing. The asset sits on FINEP's balance sheet and generates no commercial rent, but its beamline time allocations directly shape FINEP's grant priorities.

The National Scientific and Technological Development Fund (FNDCT) receives constitutionally mandated resource flows from federal sectoral levies, including a percentage of industrial production taxes, oil and gas royalties, and contributions from sectors like telecoms and energy. This structure insulates FNDCT resources from annual congressional budget negotiations, giving FINEP a semi-autonomous, resilient funding base that runs counter-cyclically during economic downturns.

FINEP's reimbursable loans are restricted to companies registered and operating in Brazil — foreign firms must have a Brazilian subsidiary with local R&D activity to qualify. Non-reimbursable grants follow an even stricter rule: only Brazilian research institutions and universities may apply directly, though international collaboration partners can participate through joint proposals led by a Brazilian institution.

FINEP's strategic direction is set by its President and executive board under the oversight of the Ministry of Science, Technology and Innovation (MCTI). The FNDCT's governing committee, which includes representatives from academia, industry, and government, approves the thematic calls and sectoral priorities that determine where billions of reais flow each year. Operational investment decisions — specific loan approvals, grant awards — rest with FINEP's career technical staff in Rio de Janeiro.