The global volume of venture capital investments decreased in 2023, reflecting a trend towards greater caution by funds in the face of economic uncertainties and changes in risk appetite. In this selective scenario, Brazilian startups seeking capital need to demonstrate much more than just a good idea to investors who expect structured financial planning, proven traction, and strategic execution.
According to Marilucia Silva Pertile, CEO and co-founder of Start Growth, a venture capital specializing in technology businesses, the new reality requires a more professionalized profile from startups. “Funds want to understand how the company plans to use the money, what results it has already achieved, and the path to sustainable growth. There is no longer room for bets based solely on potential,” says the executive, who also mentors entrepreneurs and holds a degree in Business Administration, with specializations in Startup Valuation, Commercial Management, and Strategic Planning.
According to CB Insights research, 35% of startups shut down due to the inability to raise funding, often due to a lack of clarity in their business model. Start Growth, which has invested over R$40 million in recent rounds, advises entrepreneurs to present concrete data, such as CAC (Customer Acquisition Cost), LTV (Lifetime Value), MRR (Monthly Recurring Revenue), and churn rate.
Since 2014, Start Growth has already helped dozens of companies overcome the ‘death valley’, a stage where the business has potential but has not yet achieved financial stability. Among the recent successful cases are the fintech SmartSave, which automates the habit of saving through digital microeconomies, and the HRtech Pontomais, with over 1 million active users.
The acceleration method developed by the manager, the Start Growth Method, foresees a cycle of up to three years between the initial investment and preparation for a new round. The approach goes beyond capital and includes direct support in the areas of marketing, sales, financial management, and operational structuring. ‘The startup seeking investment needs to be ready for a long-term partnership. This means management maturity, scalability, and market vision,’ emphasizes Marilucia.
The warning becomes even more relevant as global data indicate a retraction in investments. According to the Global State of Venture Capital 2023 report, the volume of investments has dropped in different regions, making selection criteria more rigorous. For investors, the differentiator lies in execution, not just in the idea.
Startups interested in raising funds with Start Growth should be in the early stage but with a validated product and initial sales already made. The business model must demonstrate scaling potential, especially in the verticals of fintechs, martechs, HRtechs, and edtechs.
In the most recent rounds, including those focused on solutions in artificial intelligence and data, over R$20 million in investments were made between 2023 and 2024. "The market still has available capital, but it will be directed to those who prove they are ready to grow. Investment is not a prize for good ideas, it is a bet on those who have execution capability," Marilucia concludes.
