Source: IBMEC

03/11/2020

Resource will be used to expand the regulatory risk management solution in Brazil.

An agreement signed between DataPolicy and Cedro-Capital, conferred a financial contribution of R$1.5 million to the initiative, at the end of October. The investment will facilitate expansion and development of the team, products, and acting in new areas of the startup, which was founded in the year 2017. The company, a Reghtech (startup that works on regulation through technology, offering strategies for risk reduction in specific niches and segments) that extracts and organizes data from the Union’s branches using artificial intelligence and monitors politicians, offers a platform that ensures easy access to regulations, which enables greater social political control and better participation in the democratic process.

The software, developed by the startup, evaluates the performance of politicians and stakeholders, and tracks laws, ordinances, and decrees from different federal and state regulatory agencies. The solution also monitors the progress of Law Projects in Committees and Rapporteurships in the legislative houses, an action that is considered strategic to the decision making of different companies, organizations, associations, unions, and cooperatives. The software has more than 14 million legislative procedures, both federal and state. In addition, more than 4.5 million acts of the Executive Branch were also extracted, and more than a thousand daily events of the Union’s branches are detected.

According to Eduardo Reis, political scientist and CEO of DataPolicy, “the tool uses the best of technology to empower companies and organizations and bring them closer to government decisions. He also explains that the algorithm scans public transparency data and indicates the regulations of interest to each user. This prevents the proceedings within the National Congress or Regulatory agencies from going unnoticed by those who may be affected by them. “This area of strategic and regulatory regulation is still small in the country. We have few companies concerned with developing platforms that meet the growing demand for a better mapping of the regulatory chaos we have around here, he comments.”

Investment

According to Alessandro Machado, partner at Cedro-Capital, Midwest Fund Manager, “Regtechs are booming worldwide, having reached in 2019 a total of USD 5 billion in investments, i.e., it is a sector that is booming from an investment perspective. In Brazil, this is especially relevant, given the amount of legislation that companies and individuals are subjected to.” The executive also argues that “the application of big data and analytics on open information from draft laws and regulations brings a technology that can transform the performance of the government relations and regulatory areas of companies, advisors and law firms.” DataPolicy employs 11 people on its staff. The startup’s goal is to increase the commercial area team to accelerate the company’s growth, improvements in user experience development on the platform, and product enhancement.

Scenario

In Brazil, more than R$60 billion are spent annually on services and solutions to solve regulatory problems in the tax area alone, according to IBPT. Every day, there are about 770 normative changes that can put companies and organizations at risk in Brazil. According to Analytical Research Cognizance[i], the RegTechs sector is growing because their product is cheaper due to technological advances. The global market for Regtechs is expected to grow 22.51% by 2026 accumulating a market value of about $12.43 billion.

DataPolicy

Founded in Brasilia in the year 2017, the startup was a finalist in Lemonade BSB 08 and winner of Accelerator Day for Taxtech & Comextech 2018 (Thompson Reuters and support from AB2L).