Evaluating the Social Value of Impact Investments: Vox Capital and Magnamed

Case Solution

Graziella Maria Comini, Juliana Rodrigues, Rosa Maria Fischer, Rosa Amelia Gonzalez
Social Enterprise Knowledge Network ()

Vox Capital pioneered an impact investment company in Brazil with the aim of creating a world where companies can generate positive social change. Vox Capital has decided to invest in companies that improve the current provision of essential services, such as the health sector, and that help reduce social inequalities in Brazil. In 2015, Vox Capital decided to invest in Magnamed, a 100% national Brazilian company that designs, manufactures and sells medical devices that depend on pulmonary ventilation for the care of hospital patients in need of critical care and the transport of patients specializes in ambulances . About 70% of the Brazilian population relied on the public health system (SUS) when they needed help, especially among low-income groups. But the SUS had a major problem, the lack of beds in the hospitals, mainly due to the lack of equipment and trained personnel to operate them. Vox Capital invested in Magnamed because its products could improve SUS and reduce inequalities in access and quality of healthcare. Their products were cheaper, easier to use and better adapted to the living conditions of our country (they have longer-lasting batteries and take up less space). Magnamed’s main markets were emerging markets, where the characteristics of the Brazilian teams were suited to local conditions. In 2017, the company announced bold internationalization plans with the opening of its first international factory with an investment of $ 2 million in the United States. The situation described in this case is fictitious and reflects some of the questions faced by Gilberto Ribeiro, a partner at Vox Capital. In this scene, during a public event, Gilberto was challenged by the moderator of the panel he was attending with the question: “What if the company [Magnamed] continues with its social approach to grow abroad?

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