What is innovation within the innovation market?

According to the dictionary, the word 'inovar’ means 'Introduce novelty in; do something like it was not done before’. And what would be new in the Brazilian innovation market beyond the applied technologies? The decentralization of investments. To get an idea, only 32% of the technology innovation businesses led by black people received contribution 'second study conducted by BlackRocks Startups in partnership with the consultancy Bain & Company.

Identifying and valuing startups led by black people, who think from high-tech solutions such as 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 conducted by IBGE, makes about R$ 1.46 trillion in the economy, a number greater than the consumption data of the entire Brazilian “A” class.

“In recent years we have seen not only the emergence but also a growth of startups founded by black people in Brazil. increasingly 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 of science, strategist and business designer who works in the creation and development of startups.

Another alarming fact is that in our country, whose 55.5% of the population is black, only 25.1% of startup entrepreneurs are black and brown, according to data collected in the study 55.5% Startups Map 2021’s, 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 that of the one currently registered.

In addition to private initiative, the public also has its role, with the creation of specific public policies that encourage the development of innovation ecosystems for afro-entrepreneurs, focusing on entrepreneurial education, support infrastructure and tax incentives. “O market has realized that black entrepreneurs ahead of startups have built relevant businesses and that it is strategic and profitable to support them, both through programs and by investing in”, points Daiane

Advances and achievements

Despite these challenges, there are important advances. BlackRocks Startups, Ginga Afrotech Hub and Google for Startups, with Black Founders Fund Brazil, are examples of initiatives that seek to support black entrepreneurs. “E we have already seen results from these programs. Uppo, a startup of corporate benefits, managed to capture more than 1 million in just 3 weeks via the Eqseed platform. We are also seeing startups of black people on the lists of promising and expanding businesses, as is the case of MuvRental and Biti9”, points out Daiane.

Highlight areas and opportunities for investment

O mapeamento da BlackRocks mostra que as startups negras estão predominantemente nos setores de educação, saúde, e finanças, com outras em crescimento no and e-commerce, tecnologia e turismo. Esse cenário oferece oportunidades valiosas para investidores que buscam impacto social e retorno financeiro, especialmente em startups que atendem necessidades específicas de comunidades negras e periféricas, muitas vezes desassistidas pelo mercado tradicional.

Inspiration for new entrepreneurs

The trajectory of successful startups led by black people reinforces that black entrepreneurship has immense potential and inspiring stories. These examples can be beacons 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 to see how these businesses are developing solutions for markets that are sometimes not monetized by companies that already exist in the market, as TrazFavela, a logistics and delivery service for the peripheral regions of Salvador, and Diaspora.Black, a platform focused on promoting black culture”, exemplifies the business strategist.“Another aspect is how they manage to build communities around their businesses, ensuring brand relevance and customer engagement, things that are essential for the success of companies in the world we live in,” highlights.

This combination of challenges, achievements and potential offers a rich panorama for investors and entrepreneurs committed to diversity. In addition, it proves that the consumption of the black population is a territory little thought and explored, but the data and the entrepreneurial movement show that the opportunities are many for those willing to collaborate with the innovative solutions necessary for the economic and social development of these areas.

Therefore, it is important, when thinking about innovation leadership more broadly, to strengthen businesses from or designed for black communities, and to understand the specific dynamics of this consumer market and the supply chain so that they generate significant impact on the national economy.