Brazilian startups are changing their business model and adopting direct sales to ensure liquidity.

247 - The way Brazilian startups structure the monetization of their products and services is undergoing a profound transformation. According to... Startups Report Brazil 2024According to data released by Sebrae, the traditional subscription model (SaaS) has lost momentum, with a 10% decline in the last year. In contrast, direct sales — where the customer pays for the solution at the time of purchase — registered a significant increase of 39%.

This change indicates a strategic repositioning in the face of a more demanding market. In an environment with less tolerance for long-term contracts and greater pressure for quick results, startups are adopting more flexible business models capable of generating immediate returns for both clients and investors.

“The subscription model offers predictability, but today the market demand is for solutions with immediate impact,” says Cristina Mieko, head of startups at Sebrae. “We are seeing a more discerning consumer and a more selective investor.”

The decline in SaaS is occurring amidst a global reassessment of the sector. After years of accelerated growth, especially during the pandemic, the software-as-a-service segment is facing a period of adjustment. Funds such as Bessemer Venture Partners and Iconiq Capital have already pointed out in recent reports a disparity between optimistic projections and the results delivered. In Brazil, the reality follows the same trend.

Cristina Mieko emphasizes that the new investment cycle focuses on financial sustainability and operational efficiency. "What was previously tolerated as a cash burn to grow quickly has now become a target for cuts," she states. "The result is that many startups have begun to revise their monetization models and migrate to formats that require lower CAC (customer acquisition cost) and offer a more immediate return."

Another important driver in this transition is the advancement of artificial intelligence. With the use of this technology, many startups are abandoning contracts based on the number of users and adopting usage-based pricing—whether by transaction, volume of data processed, or performance. "We are seeing a redesign of the models," explains Cristina.

In this context, models based on recurring license charges, without a direct link to the value generated for the customer, have lost attractiveness. Preference has shifted towards fairer and more scalable formats, driven by the actual use of the solution.

Furthermore, in saturated markets or those requiring specific solutions—such as healthcare, education, and agribusiness—consultative approaches or performance-based models are gaining ground over traditional subscriptions.

Finally, the change also requires a reconfiguration of performance indicators. Instead of focusing solely on metrics such as MRR (recurring monthly revenue) and churnAs startups begin to more closely monitor indicators such as margin per contract, average ticket per direct sale, and operational efficiency. "The market is more mature, and entrepreneurs need to be surgical: choosing the monetization model that solves the customer's real pain point and sustains business growth," concludes Cristina Mieko.