According to the dictionary, the word 'innovate' means 'to introduce novelty into; to do something as it was not done before'. And what would be new in the Brazilian innovation market beyond applied technologies? The decentralization of investments. To give an idea, only 32% of technology innovation businesses led by Black people received funding – according to a study conducted by BlackRocks Startups in partnership with Bain & Company.
Identifying and valuing startups led by black people, who think about everything from high-tech solutions like AI and deeptechs to those that solve urgent problems for the black and peripheral population, would give investors and investment funds access to an audience that, according to a survey carried out by IBGE, generates around R$1.46 trillion in the economy, a number greater than the consumption data for the entire Brazilian “A” class.
“In recent years, we have seen not only the emergence but also the growth of startups founded by black people in Brazil. We are increasingly seeing this type of entrepreneurial person using technology to scale solutions and results in relevant markets and, often, in blue ocean markets,” explains Daiane Almeida, who has a master’s degree in science, is a strategist and business designer who works in the creation and development of startups.
Another alarming fact 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 collected in the study 'BlackOut – Mapa das Startups 2021', 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 what is currently registered.
In addition to the private sector, the public sector 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. "The market has realized that Black entrepreneurs leading startups are building significant businesses and that supporting them is strategic and profitable, both through programs and investments," 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 that aim to support Black entrepreneurs. And we have already seen results from these programs. Uppo, a corporate benefits startup, managed to raise over 1 million in just 3 weeks through the Eqseed platform. We are also seeing Black-owned startups on lists of promising and expanding businesses, such as MuvRental and Biti9, points out Daiane.
Highlighted areas and opportunities for investment
BlackRock's mapping shows that Black startups are predominantly in the education, health, and finance sectors, with others growing in e-commerce, technology, and tourism. This scenario offers valuable opportunities for investors seeking social impact and financial return, especially in startups that address the 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 people reinforces that Black entrepreneurship has immense potential and inspiring stories. These examples can serve as 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 seeing how these businesses are developing solutions for markets that are sometimes not profitable for the existing companies, such as TrazFavela, a logistics and delivery service for the peripheral regions of Salvador, and Diáspora.Black, a platform focused on promoting black culture, explains the business strategist. "Another aspect is how they manage to build communities around their businesses, ensuring brand relevance and customer engagement, which are essential for the success of companies in the world we live in today," he 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 a little considered and explored territory, but the data and the entrepreneurial movement show that there are many opportunities for those willing to collaborate with the innovative solutions needed for the economic and social development of these areas.
Therefore, it is important, when thinking about innovation leadership in a broader sense, to strengthen businesses originating from or designed for Black communities, and to understand the specific dynamics of this consumer market and the supply chain so that they can generate a significant impact on the national economy.
