Opening business in Brazil is a decision that many foreign investors make for several reasons. First of all, Brazil is one of Latin America’s largest economies, ranking first with a GDP of 1.83 trillion BRL in 2022 (source: Bloomberg).
On top of that, the young population is one of the most consumerists, not mentioning the Brazilians’ interest in technological innovation in several sectors. For this and other reasons, the number of startups in Brazil is growing in the most varied segments.
Incidentally, Brazilian startups were featured in the ranking of the world’s largest accelerator, which includes startups owned by Jeff Bezos, founder of Amazon, and the Monashees fund. More details are available on the Europartner blog, an accounting company specialized in starting businesses in Brazil!
The Y Combinator ranking of the world’s most valuable companies.
This February, Y Combinator, the largest global accelerator of startups, released its annual ranking of the most valuable companies in its portfolio in 2023. More than 400 startups were evaluated, and two Brazilian companies are on the list.
In addition to the fintech Stark Bank, the car rental company Kovi features amidst the fastest-growing giant startups in the world. Namely, Y Combinator’s ranking considers startups’ market value based on their last investment round in the private equity class of companies. And Brazilian companies are on this list.
The Startups Kovi and Stark Bank
The rental company, which appears at position 151st in the ranking, is a rental startup dedicated to renting vehicles to app drivers. However, the startup has plans to expand its operations by also offering the car service model on a subscription basis.
The Brazilian startup Stark Bank provides assistance with banking services, focusing on unicorn companies. At 201st position, the fintech offers products such as billing management via Bank slip and Pix (Instant Payment Transfer System), and a corporate card with limits on expenditures per currency, establishments, country, and periodicity of operations. Other services available are payroll and customized payment approval flow.
Did you know?
All listed companies in the category presented valuations higher than 150,000 USD. The accelerator also selected the publicly traded startups and the breakthrough ones, which are characterized by their fast market growth.
How to start a business in Brazil with startups?
There are some basic startup strategies that you can follow to help get your business up and running:
1. Identify problems and solutions in the market
The first step in starting a business is to identify a problem and a solution. This is because successful startups start with business ideas that meet the needs of a group of customers. But your idea doesn’t always have to be original. For instance, you can update existing products or services in a way that is better for the consumer:
- changing the appearance of the product;
- adding a new feature;
- finding a new use for a product that customers already have approved.
2. Prepare a business plan.
Once you have an idea, start creating a business plan that depicts your products and services in detail. Then, list information about the intended segment, target audience, operations, financials and a market analysis
3. Safe funding for your startup.
A startup’s cost is different for each and every entrepreneur. However, regardless of your expenses, you will probably need to obtain initial funding from your own means, funds from angel investors, or bank loans.
4. Make sure you follow all the legal steps when opening your startups
Prior to officially entering the market, you must take the correct legal steps to have the best chance of success, including:
- company name registration,
- obtain CNPJ (National Register of Corporate Taxpayers),
- brand registration,
- opening of a Corporate bank account
- formalizing a legal representative in Brazil.
Moreover, get the support of competent companies and professionals to support you in managing your business in Brazil. Therefore, search for experienced lawyers and accounting firms such as Europartner.
We have the necessary structure to help you open your company in Brazil with efficiency, agility, commitment and transparency. Contact us and see how we can help your business grow.
