According to the dictionary, the word ‘innovate’ means ‘introducing novelty; doing something as it was not done before’. And what would be new in the Brazilian innovation market beyond the technologies applied? The decentralization of investments. To give an idea, only 32% of technological innovation businesses led by black people received funding – according to a study carried out by BlackRocks Startups in partnership with Bain & Company.
Identifying and valuing startups led by black people, who think from high technology solutions like AI and deeptechs to those that solve urgent problems of the black and peripheral population would give access to investors and investment funds to an audience that, according to a survey by IBGE, drives around R$ 1.46 trillion in the economy, a number larger than the consumption data of the entire ‘A’ class in Brazil.
‘In recent years we have not only seen the emergence but also a growth of startups founded by black people in Brazil. More and more we see this profile of entrepreneurial person using technology to scale solutions and results in relevant markets and, often, blue ocean’, explains Daiane Almeida, who is a master in sciences, strategist and business designer working on the creation and development of startups.
Another alarming data is that in our country, where 55.5% of the population is black, only 25.1% of startup entrepreneurs are black and brown, according to data from the ‘BlackOut – Startup Map 2021’ study, a number that indicates that if the Brazilian population were represented in the innovation ecosystem, the number of black startups should be at least double the current one.
In addition to private initiatives, the public sector also has its role, with the creation of specific public policies that encourage the development of innovation ecosystems for Black entrepreneurs, focusing on entrepreneurial education, support infrastructure, and tax incentives. “The market has realized that black entrepreneurs leading startups have been building relevant businesses and that supporting them is strategic and profitable, both through programs and investment,” points out Daiane.
Advances and achievements
Despite these challenges, there are significant advances. BlackRocks Startups, Ginga Afrotech Hub, and Google for Startups, with the Black Founders Fund Brazil, are examples of initiatives seeking to support black entrepreneurs. “And we have already seen results from these programs. Uppo, a corporate benefits startup, raised over 1 million in just 3 weeks through the Eqseed platform. We are also seeing startups led by black individuals on lists of promising and growing businesses, such as MuvRental and Biti9,” Daiane points out.
Highlighted areas and investment opportunities
The mapping by BlackRocks shows that black startups are predominantly in the fields of education, health, and finance, with others growing in e-commerce, technology, and tourism. This scenario offers valuable opportunities for investors seeking social impact and financial returns, especially in startups that meet specific needs of black and peripheral communities, often underserved by the traditional market.
Inspiration for new entrepreneurs
The trajectory of successful startups led by Black individuals reinforces that Black entrepreneurship has immense potential and inspiring stories. These examples can be lighthouses for new Afro-entrepreneurs, who find in the startup ecosystem a space for innovation and transformation, with the possibility of achieving sustainable growth and recognition.
“One of the most interesting aspects is seeing how these businesses are developing solutions for markets that are sometimes not profitable for existing companies in the market, as TrazFavela does, a logistics and delivery service for the peripheral regions of Salvador, and Diáspora.Black, a platform focused on promoting Black culture,” illustrates the business strategist. “Another aspect is how they manage to build communities around their businesses, ensuring the brand’s relevance and customer engagement, things that are essential for the success of companies in today’s world,” highlights.
This combination of challenges, achievements, and potentials offers a rich landscape for investors and entrepreneurs committed to diversity. Furthermore, it proves that the consumption of the Black population is an often overlooked and unexplored territory, but data and the entrepreneurial movement show that there are many opportunities for those willing to collaborate with the innovative solutions necessary for the economic and social development of these areas.
Therefore, when thinking about innovation leadership more broadly, it is important to strengthen businesses originating from or designed for Black communities and understand the specific dynamics of this consumer market and supplier chain so that they generate significant impact on the national economy.
