Startups Adapt to the Crisis

The current scenario has proved challenging for startups. Exclusively to Giro News, Gustavo Gierun, co-founder of the District innovation hub, reveals that the crisis will be a great filter for the sector. "Many startups had impacts of more than 70% on revenue and some started to have no revenue. On the other hand, some segments such as distance education, e-commerce, logistics, telemedicine and technology services saw their demands explode after the crisis." For the executive, despite the pandemic, there are opportunities in several segments. "Those who have the greatest capacity to adapt and understand the change in consumer behavior will benefit," he says. After the pandemic, the startup, innovation and technology sector is expected to continue to grow in the coming years. "2020 will be a year to rethink the market and the business model, and seek to adapt to new realities. Many adjustments will be made in this period and whoever survives will certainly be stronger." According to Gierun, there are characteristics of startups that will be important to overcome the crisis. "The main ones are resilience, adaptability or reconstruction and management - both people and the company itself," he notes. According to the executive, right now, the District is investing in technology to grow its community and make it more integrated. In turn, investors are seeking to understand the depth and extent of the crisis. "Most managers are focused on supporting portfolio startups before looking at new opportunities," says Gustavo Gierun. According to him, the most active venture capital funds in Brazil are capitalized and should gradually resume pace throughout the year. "In the world of technology there are always good opportunities, especially in a market that is still little explored and inefficient as is the Brazilian." Today, São Paulo represents the largest market for startups. "In the state, the most developed segments are Fintechs (13.5%), AdTechs (11.8%), Heathtechs (8.4%), Edtechs (7.9%) and RetailTechs (6.2%)", concludes the executive.