If you're a tech-savvy person, you've probably heard of "Unicorns," but if you're still not sure what that term means, don't worry, we'll explain it to you.
A unicorn is a startup with a market valuation of over $1 billion; in other words, they are private technology companies valued at more than one billion dollars before going public on stock exchanges, before conducting an IPO (Initial Public Offering).
The main characteristic of a unicorn startup is innovation in its market. Let's face it, that's about as difficult as finding an enchanted mythological creature these days.
The term was coined in 2013 by Aileen Lee. Some examples of Brazilian unicorn companies include Uber, Loggi, Nubank, 99, TFG, and PagSeguro.
In addition to the numerous Unicorn companies already existing in Brazil, we have compiled a ranking of the TOP 5 startups that we should keep an eye on during the coming months of 2021.
They are:
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Neon
Founded in 2014, Neon Pagamentos is one of the leading fintech companies in Brazil. In September 2020, the fintech received a US$300 million investment, led by the American fund General Atlantic. There is great optimism in the market regarding new investments, which brings the company closer to becoming the next Unicorn.
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Query
The Dr. Consulta network of affordable clinics had an intense 2020. At the beginning of the pandemic, it saw a reduction in demand for its medical services due to movement restrictions and patients' fear of going out.
The company, however, invested in strict safety protocols across all its units and implemented a telemedicine operation in an impressive amount of time, which helped in the resumption of services.
Dr. Consulta also invested in the use of artificial intelligence and predictive algorithms to improve the efficiency of its centers, increasing medical productivity, which is another important point for the projected growth in 2021.
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Petlove
Currently, Petlove is the largest e-commerce site for pet products in Brazil, with a vast catalog that includes more than 20 items such as pet food, aquariums, litter, toys, treats, collars, and more.
In 2020, the company grew its business by 69%, with revenues in the range of R$ 500 million. Ten years ago, the company's revenue was R$ 4 million.
Also last year, the company acquired Vetus, which specializes in management systems for pet shops, clinics, and veterinary hospitals, and merged with DogHero.
Now, the next challenge is to become the most desirable Unicorn in Brazil.
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olist
Founded in 2015 in Paraná, Olist is a company that received investment from Softbank, the same source as Madeira Madeira's investments. In this case, the US$60 million investment was made in a promising startup in the marketplace sector, one of the fastest-growing segments in 2020.
Known as a "marketplace of marketplaces," the Curitiba-based startup helps small and medium-sized retailers sell their products across different channels – especially large marketplaces like B2W, Via Varejo, Mercado Livre, and Magazine Luiza.
The company capitalized on the acceleration of e-commerce last year and implemented a series of initiatives to grow alongside its customers. Today, the company already has more than 25 clients. It's a promising startup poised to become a Unicorn this year.
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Position X
Founded in 2013 to address one of the major issues in Brazilian transportation, Cargo X operates as a carrier that connects companies and truck drivers through technology. In 2020, it further expanded its areas of operation, also covering the marketplace and financial services sectors.
Another initiative is the Working Capital program, which began receiving more investment last year and aims to provide resources for partner transport companies to develop their businesses. Last year, the logtech company released R$ 400 million to these companies.
In terms of results, Cargo X expects a positive end to 2021, with anticipated revenue growth of 40%.
Conclusion
Even with 2020 weakening the business world, the companies listed in our TOP 5 managed to overcome the challenges of the economic crisis and emerge in 2021 with more resilience and strategy, further expanding their businesses and becoming strong candidates for the title of Brazilian Unicorn – 2021.
