Startups broaden their focus on the end consumer and diversify their business models in Brazil.
A report by Sebrae shows that, despite the dominance of the B2B model, there is significant growth in startups focused on the end consumer in the country.
247 - The B2B (business-to-business) business model, in which companies offer products and services to other companies, is still the main focus of Brazilian startups, representing 50,9% of the total. But this dominance is beginning to be challenged. According to... Startups Report Brazil 2024According to a study published by Sebrae, there is a growing presence of initiatives aimed at the end consumer (B2C), in a movement to diversify the ecosystem.
According to the report, this growth in B2C represents a strategic repositioning by some startups, which have begun to see opportunities in new markets and revenue channels. This movement also indicates a faster response to changes in consumer behavior and a search for greater control over the sales process.
“The expansion of B2C initiatives shows that the ecosystem is more agile and attentive to market transformations. Response times are shorter, and many startups now operate with quarterly targets to test their fit with the end consumer,” says Cristina Mieko, head of startups at Sebrae.
The predominance of B2B in the country, however, remains anchored in structural factors. Startups that develop management software, cloud solutions, or tools geared towards specific sectors such as healthcare, logistics, and education find it easier to validate their products with corporate clients. These clients tend to have more predictable purchasing cycles, higher-value contracts, and lower acquisition costs – important characteristics for early-stage startups.
On the other hand, the renewed interest in B2C is partly due to technological advancements, which have significantly reduced development and operating costs. This has made it more viable to reach niche audiences with customized and scalable digital solutions. “For those entering B2C, the focus must be clear: validate whether the product solves a real problem and whether there is consumer adoption. Without this, there is no sustainable growth,” emphasizes Cristina.
She further emphasizes that tools such as OKRs (Objectives and Key Results) have been fundamental in guiding the growth of consumer-facing businesses, allowing for rapid adjustments based on learning and traction indicators.
The Sebrae report confirms that the Brazilian innovation ecosystem remains dynamic and evolving. The growing presence of B2C startups does not replace the B2B model, but points to a more balanced and resilient scenario, with more growth and diversification options for entrepreneurs.