Houston, we have super startups on the way - Latin America ...
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OCTOBER’ 19 ISSUE #2
Houston,
we have… super
startups on the way
Come aboard our Brazilian Rocket Ships and boldly go where no
one has gone before: learn about the future plans of Conta Azul,
CargoX, Creditas, Ascenty, and QuintoAndar
INTERVIEW INFOGRAPHIC
"A unicorn in Latin America is the result of A view of the Brazilian
a solution to a huge problem," says Rodrigo investment ecosystem, according
Baer, from Redpoint eventures to stages and input values
EDITORIAL
Investments
fueling Latin
American LABS is a content platform
startups
about Latin America, focused on
economics, business, technology
and society. By providing deep
and accurate content about the
economic and technological
landscape of Latin America, both
in Portuguese and English, we help
entrepreneurs and the general
I
n this second issue of LABS public understand the region’s
Collection, we invite you to explore particularities.
the strategies and plans of some true
Brazilian Rocket Ships, the startups that
have become the standard-bearers for the MASTHEAD
new investment boom in Latin America. Thiago Romariz
They are a salient example of how great Head of PR and Content at LABS
thiago.romariz@ebanx.com
opportunities can emerge in the most
adverse of environments. Fabiane Ziolla Menezes
Editor-in-Chief of LABS
LABS–Latin America Business Stories– fabiane.menezes@ebanx.com
is a specialized hub that brings tailored
Anna Lima
content from Latam to the world, and Content strategist focused
tells the best stories about the region’s on LatAm at EBANX
businesses, economy, society, and anna.lima@ebanx.com
tech. From market to culture, LABS
Livia Perretto
Collections unveil some of the idiosyn- Content strategist focused
crasies of a region full of opportunities– on LatAm at EBANX
yet little understood. Enjoy reading! livia.perretto@ebanx.com
Translation by Axel Diniz
LABS TEAM
Project Design Lead by Leticia Mulinari
Cover Illustration by Felipe Mayerle
Powered by
2 LABS COLLECTIONS BRAZILIAN ROCKET SHIPS
A unicorn in Latin America is the
result of solving a huge problem
RODRIGO BAER, PARTNER AT REDPOINT EVENTURES, TALKS ABOUT
THE NEW BOOM OF INVESTMENTS IN BRAZIL AND LATIN AMERICA
Charting the investment
stars of Brazil
THE VENTURE CAPITAL INVESTORS OF THE COUNTRY,
ACCORDING TO THEIR STAGES AND INPUT VALUES
Brazilian Rocket Ships
THE STRATEGIES OF SOME TRUE BRAZILIAN ROCKET SHIPS,
THE STANDARD-BEARERS FOR THE NEW INVESTMENT BOOM
IN LATIN AMERICA
12 Launch window - THE YEAR 2019: A STARTUP ODYSSEY IN LATAM
16 Conta Azul - WANTS TO REACH 1 MILLION SMALL-SIZED COMPANIES
20 CargoX - WANTS TO DOUBLE IN SIZE BY 2020
24 Creditas - BEGINS ITS EXPANSION INTO LATIN AMERICA
28 Ascenty - WANTS TO GROW 50% THIS YEAR
30 QuintoAndar - WANTS TO BE IN EVERY CITY
What the Petrobras scandal has
to teach
LABS COLUMNIST DIEGO AMORIM ANALYZES WHETHER THE STRUGGLE
AGAINST CORRUPTION LED BY THE OPERATION CAR WASH WAS THE
CAUSE FOR THE FALL OF SOME OF THE BIGGEST BRAZILIAN COMPANIES
Culture on the spotlight
TIPS ON LATIN AMERICAN MUSIC, CINEMA, AND LITERATURE
LABS COLLECTIONS BRAZILIAN ROCKET SHIPS 3
INTERVIEW
A unicorn in Latin America is the
result of solving a huge problem
In an interview with LABS, the partner of Redpoint eventures
Rodrigo Baer talks about 2019 as a record-setting year for venture
capital in Latin America
BY FABIANE ZIOLLA MENEZES
R edpoint eventures is a venture
capital company that invests in
startups with resources from two
other partnered funds in Silicon Valley:
2019, a year that should set a record in
terms of investments in startups in Latin
America, especially in Brazil. Browse the
interview to see what he had to say:
Redpoint Ventures and e.ventures, both of
which started out towards the end of the LABS Since 2017 we have been seeing
1990s. Other global funds involved are from a new boom in investments focused
China, Russia, Germany, and Japan. on startups, with the birth of a second
Whereas Redpoint was one of Netflix’s wave of unicorns in Brazil and Latin
first investors in the United States and America. Some believe that this is due
manages a fund of close to $ 4 billion to to a maturing both of the ventures and
support more than 400 companies, e.ven- entrepreneurs. How would you describe
tures has a focus on businesses that bring this moment?
together Internet and mobile media, with BAER The materialization of those bigger
a lengthy portfolio in that sense. It was rounds and of those unicorns is really a
with this dossier that the company landed reflection of something that happened
in Latin America in 2012. five, seven years ago, when the first large
In Latin America, Redpoint eventures venture funds were raised. The first big
has already invested in startups such as fund was by Monashees in 2011, then came
Creditas, Gympass, Olist, Pipefy, Rappi, Kaszek Ventures, also in 2011; and later
and the list goes on… More than 30 compa- Redpoint, in 2012. And this created a seed
nies have received their investments since and A Series portfolio at the time that has
then—and they have BRL 1.2 billion under matured [and transformed] five or seven
management, according to the interview years later, in C and B Series of rounds.
with Romero Rodrigues at Neofeed. And it is because of this that today we
Five years ago, the company also brought see that proliferation of unicorns and that
in Itaú Unibanco to create Cubo Itaú, is really just the maturing of venture capi-
which is currently the biggest innovation tal investments that had scalability. There
and entrepreneurship hub in the region. are 30 companies per portfolio [in] each
Rodrigo Baer, one of Redpoint even- [of those funds], so we end up talking
tures’ partners, spoke with LABS about of 100 companies that are surviving
4 LABS COLLECTIONS BRAZILIAN ROCKET SHIPS
“The materialization of those bigger
rounds and of those unicorns is really a
reflection of something that happened
five, seven years ago, when the first
large venture funds were raised”
RODRIGO BAER,
PARTNER AT REDPOINT EVENTURES
mortality rates and that today have be-
come a significant number of companies
that are able to feed bigger funds.
Photo: Redpoint eventures
LABS Is thinking about business with
a global DNA something common
for those startups attracting large
investments?
BAER I believe that it depends a little on
the history of each company. Some of the
businesses need to be truly global to jus-
tify bigger investments. Other businesses, LABS In other words, what came first?
such as those that deal with banks and Did thinking globally attract invest-
health insurance operators, for example, ments from major funds or vice versa?
could technically be big enough in Brazil BAER Once again, that depends a little on
to justify [big investments]. the history of each one of the companies.
Having said this, a large part of the Gympass began looking abroad for bigger
markets in Latin America are still very rounds internationally. In the case of
incipient and lagging behind in relation Nubank and Creditas, it is the opposite, for
to Brazil. That is why both Nubank and they are companies that would naturally be
Creditas and other companies that are huge in Brazil and would use those bigger
raising this bigger rounds have begun resources to begin looking abroad.
to look for opportunities in Mexico, What is important is that to look abroad
Argentina, Colombia, as a way to expand eats up a lot of resources, so it is only in
the addressable market, even as a means rare cases that it would be viable to do so
to justify large investments. without big rounds of investment. Both
At the same time, a company like Pipefy things go hand in hand: the possibility of
that is quintessentially a global company generating bigger rounds and, because of
from its very first day, given the opportu- that, expand abroad, and the thought of be-
nities in the country, is still too small to coming more global. People only begin to
sustain venture capital investments. dream when they envision that possibility.
LABS COLLECTIONS BRAZILIAN ROCKET SHIPS 5
LABS Why are unicorns important for levels of the chain. We ended up creat-
Brazil and Latin America? ing a pipeline in which companies like
BAER They are the consequence of giant SoftBank will enter.
problems that are being solved in a far
more efficient manner by startups. And LABS Has the arrival of those funds
if that is occurring, those companies will made you operate differently or map
earn a lot of money and, as a consequence, out new strategies? Which ones?
will be worth a lot of money. And so, BAER It changes things a little. There are
unicorns are but a consequence of solving new funds entering at an early [stage] that
a huge problem. And I don’t even need will become more competitive businesses
to repeat that Latin America is not only and quicker rounds, and I believe that this
a giant market, with 600 million people is super healthy for the ecosystem and
and a significant GDP, but also a place of for the entrepreneur. We will have more
Homeric problems. abundance of capital in A, B, and C Series,
On the other hand, for the ecosystem of and that allows for companies to operate
startups to begin having unicorns, that is a more rapidly, that the entrepreneur not
big deal: to make the global capital market waste six months raising funds.
to look to Brazil and Latin America, be- Now, the entry of growth and length
lieving that here we can build big technol- funds, these do have a very big impact on
ogy companies. the ecosystem, because they shift the hori-
zon. Before we would look to companies
LABS Does the fact that you have been that came out smaller, because it wasn’t
pioneers in Latin America place you at possible to have rounds of $ 300 million, $
an advantage over other funds arriving 400 million, or $ 500 million to continue
now, such as SoftBank? funding the growth of those companies.
BAER Everyone that enters ends up having So we began looking to companies
some kind of advantage, because this is a that were becoming bigger, with a longer
game of reputation and contact networks. horizon of investments, because it ends
You create success stories that become a up delaying the time that we take to
reference that will make the best entre- leave [the investment and the company’s
preneurs want to work with you. But I corporation]. On the other hand, they are
don’t believe that we compete directly companies with a bigger impact on soci-
with SoftBank. We are in quite different ety, that will generate more value. ■
Photo: Redpoint eventures
6 LABS COLLECTIONS BRAZILIAN ROCKET SHIPS
Tailored content from
Latin America to the world.
LABS is a content platform about
Latin America, focused on economics,
business, technology and society. By
providing deep and accurate content
about the economic and technological
landscape of Latin America, both
in Portuguese and English, we help
entrepreneurs and the general public
understand the region's particularities.
LABS.EBANX.COM
LABS COLLECTIONS BRAZILIAN ROCKET SHIPS 7
TECHNOLOGY
Charting the investment
stars of Brazil
ANGELS ACCELERATORS PR
Average
investment BRL 150k BRL 180k BRL
Average dilution
per round 5-15% 5-10%
Source: Jupter / MSW Capital / Fundo BR Startups / Angels & VCs.
8 LABS COLLECTIONS BRAZILIAN ROCKET SHIPS
In September of this year, the Brazilian innovation platform Jupter helped support the elaboration of a detailed
view of the startup investor ecosystem in Brazil, created by MSW Capital and Fundo BR Startups. The work was
also overseen by the Angels & VCs group, which brings together several leaders of the Brazilian ecosystem.
In this board, you can see most of the venture capital investors of the country, according to their stages and input
values. The board is constantly updating and may still change. Check out version 3.0 provided by the creators to LABS:
PRE-SEED + SEED SERIES A SERIES B
BRL 250k - BRL 5M BRL 15M BRL 40M
10-25% 15-25% 20-50%
LABS COLLECTIONS BRAZILIAN ROCKET SHIPS 9
10 LABS COLLECTIONS BRAZILIAN ROCKET SHIPS
TECHNOLOGY
The year 2019: A startup
Odyssey in Latin America
Since 2017, an elite group of 15 of the region’s startups
were valued at $ 1 billion or more
BY FABIANE ZIOLLA
MENEZES
T he term “unicorn” was coined by
the American investor Aileen Lee
at Cowboy Ventures, a term that
refers to a special group of tech compa-
could be considered unicorns, although
this criterion has gradually changed
over the years. LABS considered uni-
corns to be privately held companies
nies that could reach a market value of $ 1 that received investments, declaring a
billion or more—the figure was randomly market value of $ 1 billion or more fol-
chosen, most likely because it seemed like lowing the funds received; companies
a challenging goal at the time. In an article that conducted an IPO and went on to
written in 2013, Lee estimated that a mere have a unicorn valuation; and also com-
0.07% of startups would accomplish such panies that were acquired by others,
a feat. There were only 39 unicorns in the reaching the unicorn status due to such
world at the time. Nowadays, there are acquisition.
315 unicorns, according to the CB Insights Numbers like those of unicorn
platform. startups in Latin America don’t seem
Since 2017, a group of 15 unicorns to match the low economic growth
emerged in Latin America (read the and political uncertainties present in
complete chronology on the next page), the region’s countries. But there is no
according to a survey completed by contradiction between one and the oth-
LABS which took into consideration er. Startups are characterized by their
the data from the following sources: tendency to detach from the rest of the
the Brazilian Platform for Innovation sector or economy, given their disrup-
Distrito, the Latin American Venture tive and highly scalable nature.
Capital Association (LAVCA), and CB “Unicorns are the result of people
Insights itself. One of those newly-mint- solving a large problem. And I don’t
ed unicorns in Latin America is Nubank, even need to insist on the fact that Latin
a startup that this year gained entry into America is not only a giant market, with
the elite group of decacorns—compa- 600 million people and a significant
nies valued at $ 10 billion or more. GDP, but also a place of Homeric prob-
According to the original term coined lems,” observes the partner of Redpoint
by Lee, only privately held companies eventures, Rodrigo Baer.
“To have startups at such a valuation
level [that of unicorns] also shows to
“Unicorns are the result of people solving a large the whole world that Latin America and
problem. And I don’t even need to insist on the Brazil are maturing and that invest-
ing here is worthwhile,” adds Daniel
fact that Latin America is not only a giant market, Quandt, who coordinates the Distrito
with 600 million people and a significant GDP, but Dataminer, the database of Distrito.
A common characteristic among Latin
also a place of homeric problems” American unicorns and the region’s
super startups as they get closer to the
RODRIGO BAER, PARTNER OF REDPOINT EVENTURES unicorn status is the sixth sense they
demonstrate in attracting investments.
LABS COLLECTIONS BRAZILIAN ROCKET SHIPS 11DESPEGAR (ARG) – During its IPO in Nasdaq, after raising $ 332
2017 TO 2019: SEP 2017
million.
A CHRONOLOGY OF PAGSEGURO (BR) – During its IPO in Nasdaq, after raising $ 2.27
LATIN AMERICAN billion. After its debut, the company went on to be valued at $ 9
UNICORNS billion.
Since 2017, 15 of 315 unicorns 99 (BR) – When purchased for $ 600 million by the Chinese firm
in the world emerged in Latin DiDi Chuxing, reaching a market value of $ 1 billion.
America, according to a survey
completed by LABS which took NUBANK (BR) – Reached before announcing the contribution of
into consideration the data JAN 2018 $ 150 million during the sixth round of investments since its
from the following sources: the founding, in 2013. The contribution was led by DST Global fund.
Brazilian Platform for Innovation In July of 2019, it received $ 400 million in an investment round
Distrito, the Latin American by the American TCV fund. Nubank reached a market value of
Venture Capital Association $ 10 billion.
(LAVCA), and CB Insights. One MAR 2018
of those newly-minted unicorns ARCO EDUCAÇÃO (BR) – During its IPO in Nasdaq, after raising
in Latin America is Nubank, a $ 194.5 million. The value made the company surpass $ 800
startup that this year gained million in its debut. On the following day, with a valuation of its
entry into the elite group of de- shares, Arco went on to be valued at $ 1 billion.
cacorns—companies valued at $
10 billion or more. ASCENTY (BR) – When Digital Realty, an American company of
data centers, announced the purchase of Ascenty for $ 1.8 billion
or BRL 7 billion.
RAPPI (COL) – After raising $ 250 million in a round led by DST
Global, the Russian investor Yuri Milner, with the participation
from the Sequoia and Andreessen Horowitz funds; the company
went on to be valued at $ 1 billion.
SET 2018
STONE (BR) – During its IPO in Nasdaq, after raising $ 1.5 billion.
OCT 2018
IFOOD (BR) – When it announced a contribution of $ 500 million
from Naspers Ventures and Innova Capital, this last one from the
NOV 2018 entrepreneur Jorge Paulo Lemann, having planned an expansion
of operations in Brazil and Latin America.
MOVILE (BR) – With the ascension of iFood, its controller, Movile
also became a unicorn. In addition to iFood, Movile also has
JAN 2019
investments in SpoonRocket, in Sympla, and in PlayKids.
PRISMA MEDIOS DE PAGO (ARG) – When the private equity com-
pany Advent International bought 51% of the payments leader
company in Argentina for $ 700 million.
AUTH0 (ARG) – May of 2019, when the Argentine startup offered
the management of identities as a service (the Identity-as-a-
Service or IDaaS), it also announced a round of $ 103 million, lead
MAY 2019 by Sapphire Ventures.
LOGGI (BR) – When it received a contribution of $ 150 million, led
JUN 2019
by SoftBank and Microsoft.
GYMPASS (BR) – When it received a contribution of $ 300 million,
led by SoftBank and by the American fund General Atlantic.
QUINTOANDAR (BR) – When it received a contribution of $ 250
million, led by SoftBank and by the American fund Dragoneer.
SET 2019
12 LABS COLLECTIONS BRAZILIAN ROCKET SHIPS“To have startups at such a valuation
level also shows to the whole world
that Latin America and Brazil are
maturing and that investing here is
worthwhile”
DANIEL QUANDT, DISTRITO DATAMINER COORDINATOR
Photo: Distrito
years. Now things have changed,” says
Bruno Ceschin, CEO at Jupter, the
innovation platform that is the branch
of Founder Institute in Brazil and that
became the partner of Bossa Nova
“Working with the mapping of start- Investimentos, the biggest micro-ven-
ups and venture capital, we see that it’s ture capital managing firm in the
not enough for a startup to have a good country this year.
idea, to have a good business model, if Some weeks ago, Ceschin helped
it doesn’t have the ability to establish support the 3rd version of a view of the
the necessary relationships to attract startup investor ecosystem in Brazil
capital and make viable the scalability Map, created by MSW Capital / Fundo
of its business. Companies have that. BR Startups, which shows the growth
And the more investments the startup of players not only about to become
brings in, the easier it is to attract new unicorns, with rounds of B Series and
investments, because the startup earns above, but also in the initial stages of
the confidence of the market,” explains investment. “Nowadays, if the entrepre-
Quandt. neur is talented and is doing something
From the other side of things—that that makes sense, he will obtain money
of investors—the availability of more and support,” says Ceschin.
and more risk capital, primarily in the Even after having received less
seed and pre-seed stages, is due to the than 1% of the $ 254 billion in venture
recent global shift towards lower in- capital investments in the world in
terest rates—even in Latin America—a 2018, according to the data provided by
shift that has led families and organiza- Americas Market Intelligence (AMI);
tions in general to search for improved Latin America has seen how the total
returns in higher-risk investments, just volume of those investments has been
like startups. increasing on a yearly basis.
“We have been talking for some- According to LAVCA, the five primary
time about the seed funding gap here venture capital (VC) and corporate ven-
in Brazil, and I think that in terms of ture capital (CVC) investments of the
financial volume there’s still a gap, but region in 2018 exceeded $ 100 million
the number of players that are at this in each round and summed up to $ 1.2
stage [angels, accelerators, pre-seed, billion, more than the total invested all
and seed] has increased significantly year in 2017. In 2018, the registered total
[…] One of the reasons for the ex- was of $ 1.9 billion in investments, with
istence of such a gap were the high a round of $ 500 million received by
interest rates in Brazil. It wasn’t worth Movile for iFood being the biggest one
it to take such a high risk, for such (see the infographic about the volume
a long period of time, because those of investments in Latin America on the
investments were of five, seven, ten next page).
LABS COLLECTIONS BRAZILIAN ROCKET SHIPS 13THE INVESTMENT BOOM IN LATIN AMERICA
Both the amount invested and the number of deals are grow-
ing in Latin America, and 2019 should set a new record year.
It is in this environment that some companies are achieving
unicorn status; that is, a market valuation of over $ 1 billion.
Total invested via VC (in US$ million) 1,976
2000
1500
1,141
1000
526 594 500
387 425
500
143
group invested BRL 760 million (close
to $ 187 million).
0
2011 2012 2013 2014 2015 2016 2017 2018 The figures of Brazil, the most mature
ecosystem in Latin America, also set
the tone for what this year will most
Number of Deals
500
463 likely be for the region. If in the first
six months of 2019, risk capital funds
400
(including together the modalities of
249 venture capital and of private equity)
300
186 182 197 already invested BRL 7.4 billion (close
200
111 119 to $ 1.8 billion) in 115 startups in the
69
100 country, according to the Brazilian
0
Association of Private Equity and
2011 2012 2013 2014 2015 2016 2017 2018 Venture Capital (Abvcap) and the con-
sulting firm KPMG.
Source: LAVCA Both organizations believe that the
investments total in both modalities
(VC and PE) should reach BRL 14.8
SoftBank’s debut is already billion by the end of the year in the
setting records in 2019 country—9% more than in 2018.
The data provided by LAVCA for this “I believe that we are in the correct
year should only be made available path for this next phase in the mar-
next year, but the debut bets by the ket’s evolution. Much has been said
Japanese conglomerate SoftBank in the about stretched-out valuations and the
region already equal the figures of last possibility of capital availability in the
year and indicate that 2019 will have a coming years, which would certainly
new record. compromise this next step, since the
In April, the fund was responsi- evolution of startups on track to the late
ble for the biggest investment ever stage requires bigger rounds of capital.
made in a Latin American startup: $ 1 Yet I see the workforce as the funda-
billion (close to BRL 4 billion) in the mental bottleneck in Brazil, especially
Colombian delivery platform Rappi. in the technological aspect,” explains
Other investments followed—whether Pietro Bonfiglioli, CEO at Fischer, a
exclusively or lead by the Japanese venture builder with a focus on fintechs.
firm—in the physical activity platform
Gympass, the fintech Creditas, the It has never been so expensive
property rental platform QuintoAndar, to be a unicorn
and in the Brazilian home products According to the latest Unicorn Report
platform MadeiraMadeira, all of them from PitchBook and innovation plat-
totaling $ 891 million (BRL 3.65 bil- form Plug and Play, which arrived in
lion). Without taking into account the Brazil in September in a partnership
acquisition of shares equivalent to 8.1% with Elo, the 187 active unicorns in the
of Banco Inter, in which the Japanese United States during the first semester
14 LABS COLLECTIONS BRAZILIAN ROCKET SHIPS“It wasn’t worth it to take
such a high risk, for such a
long period of time because
those investments were
of five, seven, ten years.
Now things have changed”
BRUNO CESCHIN, CEO AT JUPTER
Photo: Jupter
of 2019 raised more than $ 600 billion During the first semester of 2019, the
in market value. The stock market de- average contribution received by start-
buts of Zoom, Pinterest, Lyft, and Uber ups that reached the status of unicorns
are also included in this total. Seems was of $ 126.1 million in the US. The
like a lot? The figure is, actually, a bit consecutive funding received after
lower than the peak of $ 603.3 billion reaching the initial unicorn status os-
reached in 2018. cillates between $ 130 million and $ 175
For those that follow innovation million, according to Unicorn Report.
closely, this small difference indicates In other words, it has never been so
that there is a growing consistency in expensive to be a unicorn.
the North American ecosystem, which Even if the availability of resources
is the most mature in the world, and for the scalability of startups has never
that a new record may be reached by been so high, the way to assess the
the end of this year. returns on these investments may be
“We anticipate more unicorns in changing.
emerging regions, such as the Asia- More and more, those consistent
Pacific region, but the center of gravity companies—those that reached or are
remains primarily in North California. about to reach the breakeven point—
Hence, I hope that a greater production are expected to attract the attention of
of unicorns may be located around that investors, more than the classic disrup-
center of gravity. Although, the method tion model that begins with a great idea
will be different,” affirms Saeed Amidi, but that never truly takes off.
CEO and founder of Plug & Play Tech The new unicorns of Latin America,
Center, in the report. according to what experts shared with
According to Amidi, the next giant LABS, are in the first group, alongside
companies in the tech industry “will Zoom (which already debuted with
be a pure disruption of traditional profits in April of this year in Nasdaq,
business models by way of technology valued at BRL 15.9 billion) and Pinterest
application, rather than essentially (that completed its IPO on the same day
being driven by a new type of technol- as Zoom, with similar results in terms
ogy or market.” of profits, and valued at $ 12.8 billion).
This disruption of traditional activ- Lyft and Uber are, for the time being, in
ities requires capital. A lot of capital. the second group. ■
LABS COLLECTIONS BRAZILIAN ROCKET SHIPS 15ACCOUNTING
Conta Azul wants to
reach 1 million small-sized
companies by 2025
On track to becoming a unicorn, the Brazilian startup is revolutionizing the
role of accountants and offering small-sized companies the chance to say
goodbye to bureaucracy
BY FABIANE ZIOLLA
MENEZES
T o serve 1 million of small-sized
Brazilian companies, those with
revenues of up to BRL 3.6 million
a year, by 2025 is the goal of Conta Azul,
Six months later, the startup an-
nounced an investment of BRL 60
million in the development and launch
of Conta Azul Mais, the first part of its
a Brazilian accounting startup that accounting cloud platform, as well as
was founded seven years ago by three the acquisition of Wabbi, the virtual
young entrepreneurs from Joinville, the storage startup.
largest city in the state of Santa Catarina, If the monthly task of balancing a
Southern Brazil. “With that number, we client’s accounts (which includes the
can place Conta Azul among the top fulfillment of obligations, calculation of
companies of the segment in the world,” taxes, and generation of the necessary
reveals Vinicius Roveda, CEO and books) can take from 20 to 25 hours,
cofounder of the startup, alongside José the new platform promises to reduce
Sardagna and João Zaratine, to LABS. the time to a single hour. Recurring
The first big step in that direction was demands, such as the generation of tax
taken in 2018, the best year in the start- invoices and payment sheets, are auto-
up’s history until now. mated. And, more importantly, the en-
In April of last year, Conta Azul trepreneur and accountant can view all
received a contribution of BRL 100 the information in real time, something
million. These resources came in the that, according to Roveda, isn’t offered
fifth and biggest round completed by as a solution elsewhere in the market.
the company so far, categorized as a D In addition, the platform is also
Series and which was led by Tiger Global integrated into a series of financial in-
Management, a company from New York stitutions, such as Bradesco and Banco
that had already invested in Conta Azul do Brasil; fintechs, such as Stone; and
in 2015. In the agreement with investors, others that offer a series of solutions to
the company accepted the commitment services made available by Conta Azul.
to doubling its size in 2018 and maintain- Conta Azul Mais consolidated an im-
ing its growth at a rate of 100% in the portant turning point within the company
three following years. that began in 2017 and focused on engag-
ing not only with small-sized companies,
but also attracting those from the other
“Our primary focus is to help the smaller side of the spectrum—accountants—as
enterprises to have control of their businesses” partners of the startup. “Our primary
focus is to help the smaller enterprises to
VINICIUS ROVEDA, CEO AND COFOUNDER OF CONTAAZUL have control of their businesses and, at
the same time, to renew their relationship
with accountants, which can have a more
active consulting role, that of intelli-
gence,” explains Roveda.
16 LABS COLLECTIONS BRAZILIAN ROCKET SHIPS“It's for that reason that the impact of our work
can be huge for the country. The company that
economizes time and improves management,
grows and creates jobs”
VINICIUS ROVEDA, CEO AND COFOUNDER OF CONTAAZUL
Why considering small-sized normative instructions, constitutional
businesses makes all the sense amendments, decrees, and official
in the world declarations, changed on a daily basis
Conta Azul’s mission would be quite in Brazil.
easy, if it wasn’t located in Brazil. In There is also the challenge of the
a 2017 study by the Brazilian Institute lack of financial education and the
of Planning and Taxation (IBPT), consequences that this has for busi-
it was revealed that, since the new nesses: a third of micro and small-sized
Constitution of the country estab- companies are accustomed to going
lished in 1988, an average of 769 poli- out of business before completing two
cies, among laws, provisory measures, years for that reason.
Photo: Conta Azul
LABS COLLECTIONS BRAZILIAN ROCKET SHIPS 17“When you have a
20 million market,
you don’t have to leave.
Our mission is to make
Conta Azul available for
all small businesses”
Photo: Conta Azul
VINICIUS ROVEDA, CEO AND
COFOUNDER OF CONTAAZUL
At the same time, it is precisely those depending on the size of the company
micro and small-sized companies that and the set of demands.
are responsible for generating more “The transformation of this market
than half of the jobs available in the has arrived with quite some force
country. "It's for that reason that the during the past two years, but we
impact of our work can be huge for the have a window of five to seven years
country. The company that economizes in which we will live a new reality,”
time and improves management, grows anticipates Roveda.
and creates jobs," says Roveda.
This year, the innovation platform New plans, new headquarters
Distrito listed the startup among those In May of this year, Conta Azul
companies that will soon become changed headquarters, from an office
unicorns—that is, those companies that of 2 thousand square meters to a much
reach $ 1 billion or more in market value. bigger one of 9 thousand square me-
Conta Azul already has 10 thou- ters in Ágora Tech Park (Inovaparq),
sand partnered accounting offices and in Joinville.
the goal is to double this amount by The new space came at the right
2021—Brazil has 69 thousand active time. “Our biggest investment, given
accountants, according to the Federal that we are a technology company, is in
Accounting Commission. On the other human capital and the biggest part of
side of the spectrum, more than 800 such an investment was made in 2018.”
thousand small-sized companies have The company should finish 2019 with
gone on to using Conta Azul. 500 employees.
The platform charges no fees for the For now, there are no expansion plans
partnered accountant, but is rather paid for other Latin American countries.
for by those small-sized companies in- “When you have a 20 million [companies]
terested in the services. There are four market, you don’t have to leave. Our mis-
plans to choose from, with prices that sion is to make Conta Azul available for
range from BRL 89.90 and BRL 199.92, all small businesses,” says Roveda. ■
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LABS COLLECTIONS BRAZILIAN ROCKET SHIPS 19LOGISTICS
CargoX wants to
double in size by 2020
The only logistics startup among those forecast to become unicorns,
the company is a technological bridge between 300 thousand freight
drivers and 9 thousand shippers in all of Brazil
BY FABIANE ZIOLLA
MENEZES
T he Brazilian CargoX is the only
logistics startup among those
considered by CB Insights and
Distrito as a company to become a
revenues. "Our average growth and
revenue rate is more or less 20% per
month," says Carvalho.
Four projects launched this year
unicorn in the next few years. With should help CargoX reach that objec-
revenues at home of BRL 500 million tive. The first of those is the CargoX
in 2018, more than three times that of Benefits Club, which has partners with
the previous year, the company has Dpaschoal, Omnilink, Graal, and Rede
not revealed its forecasts for 2019, yet Siga Bem—all of them belonging to
it disclosed that it wants to double the the group BR—and offers a series of
number of employees, today at 350, by discounts and advantages for truck
the end of next year. For that to take drivers that work for the startup.
place, according to the COO Daniel The big objective of the program is
Carvalho, it will be necessary to double to transform the base of 300 thousand
20 LABS COLLECTIONS BRAZILIAN ROCKET SHIPS“Our average growth
and revenue rate is
more or less 20%
per month”
Photo: CargoX
DANIEL CARVALHO, COO AT CARGOX
truck drivers already registered in the The third project launched by
platform of active drivers. These driv- CargoX this year was the Cargo Force,
ers would need to frequently transport a marketplace for freight companies
goods for CargoX. “The base of actives that use the platform. Through it, the
doubled in a year, from 10 thousand to startup’s partnerships, which are most-
20 thousand and it is growing at huge ly small-sized companies, are being
monthly rates,” emphasized Carvalho. presented to shippers—a name that
All the benefits of the club show an CargoX gives to the companies that
estimated economy of BRL 14 thousand own the shipments being transport-
per year for each truck driver. ed—including giants like Unilever and
Along with the club, CargoX also Votorantim.
launched, in partnership with the BR
Group, the first Truck Driver Office. Up to BRL 300 million to win over
The space is located in the city of the small freight companies of
Santa Bárbara do Oeste, in São Paulo, agribusiness
and receives close to 250 drivers per The marketplace is accompanied by a
month, although it has the capacity to big initiative in 2019: the launch of the
receive even more. BRL 100 million fund to finance work-
“There the truck driver can rest, he ing capital for freight companies in
has the right to take a shower, to clean agribusiness—a sector that responds
his clothes, heat up his food, etc. It is to more than 20% of Brazil’s GDP and
a way for people to value that commu- in which CargoX wants to enter head
nity which today is essential for the on. Today, the company is already a
country, even if, thinking about it, it is reference in transportation of the seg-
so undervalued,” emphasizes Carvalho. ments of drinks, metallurgy, home and
The goal of the company is to open construction, and also retail.
another 30 spaces like that one by the Through the fund, the startup offers
end of 2020. a type of loan that is linked to the
LABS COLLECTIONS BRAZILIAN ROCKET SHIPS 21“Today, 40% of our operations are with self-employed
truck drivers and another 60% with small-sized
transportation companies, that reach a total of
110 thousand in Brazil”
DANIEL CARVALHO, COO AT CARGOX
intermediation of services through the but rather a technology company
platform. The value that the freight in transportation that brings with it
company pays CargoX for the deliver- efficiency as a whole for the system,”
ies completed through the interface of explains Carvalho.
the platform is increased with interest “Today, 40% of our operations are
rates, which vary according to the risk with self-employed truck drivers and
of the loan. another 60% with small-sized trans-
“We offer not only working capital, portation companies, that reach a
but also the technology and means total of 110 thousand in Brazil,” adds
for that transport company to expand the COO.
its business […] It is a great partner- By the end of 2020, BRL 300 million
ship, which strengthens our objec- should be available for small trans-
tives as a company, that are not mere- portation companies by the startup
ly to be a transportation company, through that fund for working capital.
Photo: Shutterstock
22 LABS COLLECTIONS BRAZILIAN ROCKET SHIPS“The South [of Brazil] is where we have a
lot of space to expand and where we are
looking for partners, among transportation
companies and shippers, to grow”
DANIEL CARVALHO, COO AT CARGOX
Latin America only in the long run
Photo: CargoX
CargoX operates in all the regions of
Brazil, yet following the concentration
of the country’s highway network,
which is very strong in the Southeast
Those resources come from the and Northeast, and then in the South
last contributions received. In of the country. “Of those regions, the
August of 2018, CargoX complet- South is where we have a lot of space
ed its fifth round of fundraising. to expand and where we are looking
The injection of $ 60 million in for partners, among freight companies
capital was led by Blackstone and shippers, to grow,” explained the
and by the Hudson Structured COO of the startup.
Capital Management fund. Latin America is part of the strategic
Since its foundation, in 2016, the plan of the company, but only in the
company with its headquarters long run. The primary focus of the
in São Paulo received a total of startup remains Brazil, the third larg-
$ 96 million in contributions, est transportation market in the world,
derived from investors such as only behind the United States and
Goldman and Sachs, Qualcomm China—countries in which, according
Ventures, and the multinational to Carvalho, “there is already quite a
Agility Logistics, headquartered bit of investment in technology, even
in Kuwait. CargoX also counts for companies that do similar things”
with the expertise of two key to those of CargoX.
executives in the directing body "Brazil is the best possible laborato-
of the company: Oscar Salazar, ry [to create and test solutions], due
the ex-CTO of Uber; and Eddie to both its size and complexity of its
Leshin, cofounder of Coyote (the market,"says Carvalho. According to
American startup with similar him, the big objective for CargoX is to
operations to those of CargoX in transform the Brazilian transportation
the USA). market into an online market. ■
LABS COLLECTIONS BRAZILIAN ROCKET SHIPS 23© Shutterstock
LENDING
The Brazilian fintech Creditas
begins its expansion into
Latin America
The startup wants to be the first and foremost partner of the consumer during
those big purchases, offering cheap credit as equity for automobiles, real estate
property, and salary
BY FABIANE ZIOLLA
MENEZES
F ounded in 2012 under the name
BankFácil by the Spaniard Sergio
Fúrio, Creditas was actually born
five years later, after a contribution of
Brazilian fintech reached its turning point.
In 2018, Creditas received $ 55 million
in a C Series round that was led by the
Swedish fund Vostok Emerging Finance.
BRL 60 million led by IFC, a branch of The contribution, which also had the
the World Bank, and was also the target participation of Santander InnoVentures, a
of investments by the fintech Naspers in fund by Santander bank, and of Amadeus
Latin America. Other pioneering funds in Capital Partners, was important for the
the region that had already invested in the scaling of the fintech throughout the year,
company in 2016, such as Redpoint even- sustained by the products that already
tures and Kaszek Ventures, also participat- existed regarding the concession of credit
ed in the first round. Yet it was only after as equity for real estate and automobiles.
the next two rounds of investment that the It was the year in which Creditas really did
24 LABS COLLECTIONS BRAZILIAN ROCKET SHIPSIt is very important to work in
localization, and i believe that much of
our success here is due to that.
BERTRAND CHAVEROT,
“It is not exactly defined with DIRECTOR OF UBISOFT
which product, but we will
debut in Mexico in 2019,”
FABIO ZVEIBIL, VP OF BUSINESS
DEVELOPMENT IN CREDITAS
Photo: Creditas
Photo: Creditas
help the Brazilian consumer learn about the fintech also participated in the invest-
home equity—a type of credit so common ment round.
and broad in other countries, yet so rarely With the last round, the market value
offered and used in the country. While in of Creditas jumped from $ 250 million
the USA such credit lines represent 15% to $ 750 million—yet prior to this final
of residential credit, in Brazil that portion investment round, the fintech had already
does not even reach 2%. made the list of soon-to-be unicorns in the
With those resources, Creditas an- innovation platform Distrito.
nounced a third line of credit in its opera- The new resources will fuel the fintech
tions, based on payroll loans—loans which to not only continue growing in Brazil,
are repaid through payroll deductions but also to expand its operations in other
over a short period of time, offering em- countries in Latin America and Europe. “It
ployees lower interest rates. “We bought is not exactly defined with which product,
a platform named Creditoo, focused on but we will debut in Mexico in 2019,” guar-
private loans, and we completed the three anteed Zveibil.
of the main equities that everyone has, In addition to bringing its operations to
which are the automobile, real estate, and Mexico, Creditas has also just opened offic-
salaries. And now we are thinking in more es in Valencia, Spain. “The choice of Spain
products beyond credit in those three happened mostly because Fúrio is from
equity ecosystems, which is how I like to there, but also because it is a context of full
call those three lines,” explained the VP development and that can accelerate ours
of Business Development for the fintech, also,” says Zveibil. In Brazil, Creditas has
Fabio Zveibil, to LABS. its headquarters in São Paulo and offices in
The Series D investment round, an- Porto Alegre.
nounced in July of this year, shaped the in-
ternationalization of the fintech. The round New products by Creditas
of $ 231 million was led by SoftBank Vision In the case of credit linked to automo-
Fund and by the SoftBank Group Corp. biles, Creditas will soon offer financing
conglomerate itself. Previous investors of for the purchase of vehicles. “The client
LABS COLLECTIONS BRAZILIAN ROCKET SHIPS 25“Since almost all reforms end up being more
will be able to not only use the vehicle
that they already have to get money, but
expensive than initially planned, the big hook
also get credit to buy a vehicle. We are of this case is that we offer the project”
still looking to add products and services
in the purchase of that vehicle, through FABIO ZVEIBIL, VP OF BUSINESS DEVELOPMENT IN CREDITAS
partnerships. The client will be able to
complete repairs and hire insurance at provide the labor needed for the comple-
lower rates, in addition to exchanging the tion of the house reforms. There are no
automobile whenever they want. I want to plans yet as to when the service will be
be the reference for my client when they offered in other places in Brazil.
are thinking of an automobile, and follow And in the case of salary, Creditas is
the same logic in relation to the home and developing a credit line that permits
salary,” emphasizes the VP of Business payment in installments of products with a
Development in Creditas. high price tag, linked to payroll deductions.
In the case of real estate, Creditas “We are going to create a marketplace for
launched two months ago and exclusively people to purchase things with a high price
in São Paulo, a specific credit line for home tag. A person with a salary of BRL 2 thou-
reforms. With it, the client could use up to sand doesn’t have a big limit on their credit
15% of the value of the property as equity card to buy a television, but can handle
for the loan to renovate the house. “Since perfectly paying in installments [depen-
almost all reforms end up being more ex- dent on a good such as that one],” explains
pensive than initially planned, the big hook Zveibil. The idea is to offer electronic de-
of this case is that we offer the project [of vices, appliances, trips, and other products
the reform],” tells Zveibil, who also says and services in the area of education, all of
that the plan is to sign partnerships to also them under payroll loans. ■
Photo: Creditas
26 LABS COLLECTIONS BRAZILIAN ROCKET SHIPSLABS COLLECTIONS BRAZILIAN ROCKET SHIPS 27
Photo: Ascenty
DATACENTER
Looking to the cloud, Ascenty
plans to grow 50% this year
The Brazilian unicorn is exploiting a rising market and plans its expansion to Chile,
Mexico, and Colombia
BY ESTELITA HASS
I t was not an epiphany—nor one of
those ideas that reinvents the wheel—
that took Ascenty to the exclusive club
of Brazilian unicorns. The path taken to suc-
that is spread throughout Latin America
has gone from 13 to 35.
“The business of the cloud is a crazy
business. It grows at rates of 40%, 50%
cess by the company, headquartered in São per year. And this for the next ten, fifteen
Paulo, was a traditional one: lots of sweat, years,” he comments.
investments, and a strategic gamble in a sec- Ascenty became a unicorn last year, after
tor that, nine years ago, was still incipient in being bought by the American Digital Realty
Brazil and Latin America: the data centers. for $ 1.8 billion. Nine years ago, they made
“Data is the future,” affirmed the vice an audacious wager: to invest in fiber optics
president of marketing and cofounder of and data centers in Brazil, during a period in
Ascenty, Roberto Rio Branco, in an inter- which the global economy was still suffering
view for LABS. A business enthusiast, he the impacts of the financial crisis of 2008.
reveals that the company should grow “Brazil was extremely lacking in terms of
50% this year alone and is planning an ex- providing data center services. But it was
pansion to Chile, Mexico, and Colombia. a sector that was growing steeply, even in
In five years, the number of data centers the USA, amidst the crisis that they were
28 LABS COLLECTIONS BRAZILIAN ROCKET SHIPS“The business of the cloud is a crazy business.
It grows at rates of 40%, 50% per year.
And this for the next ten, fifteen years”
ROBERTO RIO BRANCO, VICE PRESIDENT OF
MARKETING AND COFOUNDER OF ASCENTY
experiencing. It is a significant investment,
but it pays off,” says Rio Branco. Ascenty’s
partners, led by the American Chris Torto
who resides in Brazil, had just sold Vivax, a
subscription TV company, for BRL 1.3 bil-
lion. And they saw the opportunity to invest
Photo: Ascenty
in a promising sector, taking advantage of
the fiber optic network that they already had
in the country.
Nowadays, Ascenty has 13 data centers
throughout São Paulo and Fortaleza, and
began this month the construction of its first what our clients need is service. Data is their
data center outside of Brazil, in Santiago lives,” affirms Rio Branco. “So, if there is a
(Chile), with an investment of $ 70 million. problem at 2 am in the morning, they need
The company has plans to invest BRL 2 bil- someone who will take care of them at that
lion and wants to reach the year 2020 with 17 hour. This is what happens with Ascenty: a
data centers in operation. quick call to any of our cellphones, and the
Having the necessary know-how in Latin issue is resolved.”
America, alongside partners with a deep For him, Latin America represents a great
knowledge of the local market, was crucial opportunity for businesses—and it is in
in their growth trajectory—to begin with, this region that he envisions the future of
it helped them adjust to the challenges of the company. Chile, a country chosen to
investing in Brazil. One of the important begin the regional expansion of Ascenty,
investments of the company, for example, is is described by Rio Branco as “a fantastic
to bury the fiber optic network that today country.” “It is a strategically privileged
is strung in the air, on the poles of electric country because of its location, being open
companies—making them more susceptible to investments, technology. For us Brazilians,
to the weather conditions and connection to do business with Chile is a pleasure. The
issues: “It is a difficult process, expensive, cost of operating in Chile is far less than the
that demands municipal permits, from all cost in Brazil,” he affirms.
the state-owned agencies… It is the cost of For Mexico, the second largest economy
operating in Brazil,” comments Rio Branco. in Latin America and the neighbor of the
The company currently owns 4,500 km giant North American market, Ascenty has
of fiber optic cables throughout the country. hired directors and defined the location
That is one of the factors that distinguishes where its data center will be established.
them from competitors, according to Rio In the case of Colombia, the plans are still
Branco, and that has set them apart in the being studied.
sector, since it ensures the connectivity of “Those are the three most thriving econ-
data centers. omies in the region. Colombia is growing in
“In terms of technology, we are all equal. If a completely unregulated economy. It is a
you have money and a good project, you can country with a vision of internationalization
have the infrastructure of the first world. Yet that is quite advanced,” says Rio Branco. ■
LABS COLLECTIONS BRAZILIAN ROCKET SHIPS 29Photos: Quinto Andar
REAL ESTATE
QuintoAndar is already
in 25 Brazilian large cities
The startup is the newest unicorn in Latin America and it has plans
for the region in 2020
A ny person that had to look for a which allowed the startup to offer
FABIANE ZIOLLA
MENEZES place to rent in Brazil knows that something truly new: a free security
it is one of the most daunting tasks deposit for tenants and landlords. And
in the world. Normally, those that do not with that, the startup went on to ana-
have a cosigner, will need to pay two to lyze, of its own accord, the credit of the
three months of rent in advance or acquire tenant and approve it in record time:
a security deposit that costs 12% of an three working days.
annual contract, on average. In addition, The BRL 250 million received in
the entire process tends to suffer delays, November of 2018, in an investment
close to ten working days. It was that pain round led by the North American fund
that inspired the foundation of the startup General Atlantic, with the participation
QuintoAndar by the Brazilian entrepre- of previous investors, Kaszek Ventures,
neurs André Penha and Gabriel Braga. Qualcomm Ventures, and QED, were
The startup began in 2012, with a decisive to scale the startup. From
small operation in Campinas, inner there to here, QuintoAndar jumped
city of the state of São Paulo where from 500 to 1 thousand employees, and
Penha finished his undergraduate de- from three to 25 Brazilian cities, includ-
gree. Three years after its foundation, ing the following state capitals: São
QuintoAndar signed a contract with Paulo, Rio de Janeiro, Belo Horizonte,
the insurance firm BNP Paribas Cardif, Brasilia, Goiânia, Porto Alegre,
30 LABS COLLECTIONS BRAZILIAN ROCKET SHIPS“Today, renting is twice as fast
through QuintoAndar, than through
the traditional model. The next phase
was to look at the quality of the rental
properties, so as to bring unique
options for our clients, improving their
rental experience, even more”
Photos: QuintoAndar
ARTHUR MALCON, REGIONAL MANAGER OF QUINTOANDAR
Curitiba, and Florianopolis. than 30% in the number of contracts
It was at that scale which caught the signed per month in comparison to
attention of giants, such as the Japanese how they performed before joining
fund SoftBank. In this month of QuintoAndar,” emphasized Malcon.
September, QuintoAndar announced an
investment round led by the fund that It’s not enough to rent quicker
raised $ 250 million and was valued at This year, QuintoAndar launched a
more than $ 1 billion. pilot project in which it handles the
According to the regional manager costs of renovating a property be-
of QuintoAndar, Arthur Malcon, the fore placing in the market as a rental.
total amount will be used, basically, Taking its cue from the production
for the expansion of the company in logic of streaming services, the ser-
Brazil, with the development of new vice was christened as QuintoAndar
products and services, and the hiring Originals. “Today, renting is twice
of new talents at the leadership level as fast through QuintoAndar, than
in QuintoAndar, in addition to a con- through the traditional model. The
stant investment in technology (only next phase was to look at the quality
in 2019, BRL 70 million were spent in of the rental properties, so as to bring
this respect). unique options for our clients, improv-
In comparison with its beginnings, ing their rental experience, even more”
when QuintoAndar was called the said Malcon.
“Uber of real estate agencies” and For the time being, the program is
appeared to represent the end of anchored in the Centro Expandido of
mediation in such a traditional sector, São Paulo and envisions rental proper-
quite a few things have changed. The ties of up to 100 square meters.
startup does not reveal the number Another important aspect in the
of agents and photographers that startup’s radar is its expansion beyond
work for the platform, yet it has Brazilian borders. QuintoAndar
disclosed that it already has 15 real knows that it has a business model
estate agencies in the condition of ready for that. “Many [of emerging
partners—and intends to use the countries] have common pains with
newest contribution to increase this those that we have here and make
number. “While we accelerate our sense to us. […] This is an issue on
growth rate, they [the real estate which we should have news next
agencies] had an increase of more year,” said the regional manager. ■
LABS COLLECTIONS BRAZILIAN ROCKET SHIPS 31Photos: Shutterstock
OPINION
Is the struggle against
corruption to blame?
DIEGO AMORIM
O n November 14th, 2014, Federal
Police agents roused from sleep
some of the most powerful men
in Brazil. It was the seventh phase of the
businessmen experienced a crisis when
they arrived at the Federal Police's
penitentiaries on the day of their
arrests. Some cried in panic, others
notorious Lava Jato Operation, chris- said that they would not accept the
tened as "the Final Judgment." Among "humiliation" of being jailed, according
the 25 targets, presidents and executives to police reports that have appeared in
from construction firms in the country chapters from books and scenes from
ended up jailed. films on Lava Jato.
Tracking the trails left by apprehen- Even with all the criticisms that can
sions, due diligence, breaches in confi- be raised against any police operation,
dence, and the testimonies of other sus- it was an unprecedented moment in
pects probed, the Federal Police were Brazil. Never before had such rich
on the right path when thinking that and powerful men been thrown into
the companies of those powerful men a police van–all of them together. It
had played a part in that large-scale signified a shift in the paradigm, one
corruption network built to unlawfully that broke the perverse Brazilian logic
divert resources away from Petrobras, in which white-collar crimes went
the biggest state-owned company in unpunished.
Brazil. The contracts under suspicion Some of those construction business-
totaled more than BRL 60 billion. men on that fateful November of 2014
With the typical arrogance of were eventually convicted, and others
someone who, blinded by power and were imprisoned, and others remain
a degree of impunity, believes he is under police investigation. A good part
"master of the world;" some of those of these men preferred to collaborate
32 LABS COLLECTIONS BRAZILIAN ROCKET SHIPSYou can also read
