Start Growth, a venture capital manager founded in 2014, is launching a new front to support startups in the early stages: its own digital marketing operation integrated into the acceleration program.The goal is to solve a recurring bottleneck of companies that have already validated the product, but have not yet been able to structure sales strategies and attract customers.
According to a survey by CB Insights, 42% of startups end their activities due to lack of market and 29% due to capital problems. In Brazil, data from the Brazilian Association of Startups (Abstartups) show that 74% of emerging companies are in the initial phase, precisely the most vulnerable stage in terms of cash. It is in this scenario that Start Growth intends to act, offering a marketing and communication structure already ready, with lower costs than assembling a team of its own.
According to Marilucia Silva Pertile, co-founder of Start Growth and a mentor of startups, the decision was made after observing recurring difficulties in the portfolio. “I have realized that most startups we serve, especially initials, have the product ready, minimally validated, but can not invest in basic structure to sell and grow”, he says.
The executive explains that the proposal is to take a more active role within the selected companies. “We are offering startups that open the cap table for us a digital marketing operation within Start Growth, to accelerate this faster. The startup will pay a monthly fee much lower than it would have with its own structure, and at the same time will have a team dedicated to creating and executing strategies with us”, he says.
In practice, the manager will assemble a team specialized in media, digital marketing and communication, led internally. The model differs from a conventional agency, since Start Growth becomes part of the cap table and therefore shares the risk and return of the business. “We do not want to be compared to an agency, because the agency does everything packaged the same for everyone. Being in the cap table, it makes much more sense to fight for the results, to be really the growth”, says Marilucia.
She also points out that the solution seeks to reduce common delays in startups that try to structure marketing internally. “Recently we saw cases in which the startup took months to hire and train an analyst or to hit basic campaigns. At that time, the mouth of the funnel was empty. With our team, in six months we will already be validating hypotheses, accelerating and bringing qualified lead”, he highlights.
The financial weight of the structure itself
A survey based on average salaries in Brazil shows that setting up a minimum internal digital marketing team costs around R$ 25 thousand per month (R$ 6 thousand), a performance manager (R$ 10 thousand), a designer (R$ 5 thousand) and automation tools, paid media and CRM that add up to other R$ 4 thousand monthly. This value does not include labor charges, training time and learning curve.
In the model announced by Start Growth, the selected startups pay a significantly lower monthly fee, with access to an already structured and dedicated team. The differential, according to the manager, is in the alignment of interests: as Start Growth starts to compose the cap table, the return depends directly on the commercial success of the startup.
Global acceleration trend “hands-on”
The Start Growth strategy follows a trend observed in international acceleration programs.Y Combinator, in Silicon Valley, has created teams of growth, product and technology specialists who work directly in the invested companies, shortening the learning time.In Brazil, accelerators such as ACE and Darwin Startups have also expanded the offer of internal services, going beyond the check and offering support in sales, people management and technology.
This movement reflects a change in the profile of early stage investors. Financial capital remains essential, but is no longer enough to differentiate a program. According to the Global Accelerator Report 2023, more than 60% of global accelerators have started to offer complementary services such as marketing, legal and operations to increase the chances of survival of the startups invested.
With the new digital marketing cell, Start Growth is positioned in the same way, with a proposal adapted to the Brazilian reality: reduce costs and accelerate commercial results of startups in the early stage, precisely when the cash is shorter and the risk of mortality is higher.
The expectation of the manager is that the model will increase the attractiveness of the acceleration batch, currently with registrations extended until September 18, and strengthen the ability of startups to generate revenue soon after the initial validation of the product.