Brazil is reborn in this new year with a new government. Doubts, uncertainties and hope are the feelings nurtured by those in opposition and in opposition to the government.
However, something that is unquestionable is that startups will continue to grow at full steam in 2023, contrary to global economic expectations.
But what you need to keep in mind is that it will no longer be that uncontrolled and unsustainable growth, but a more solid growth.
The very structure of startups is already changing. The focus on short-term monetisation is already part of the day-to-day life of companies. And those who do not have this plan will be out of the market.
But who will be the startups of the future?
In my opinion, the new startups should be born with a deep focus on the ESG philosophy. That is, supported by the pillars of environmental, social and governance sustainability.
Therefore, what I always ask before investing is: what commitments does your fintech have to the environment and society? And what will its governance be like?
If the company is not supported by these three pillars, I am more cautious about the business. After all, I believe that in the next decade, companies that do not adopt these pillars will be out of the market.
I saw recently that the main nations of the world are already concerned with these pillars much more than we imagined.
Why is it so important to adopt the ESG philosophy?
Firstly I believe that adopting the ESG philosophy is a commitment to creating a much more humane and just world for people.
I see that startups that adopt this model will win the race. Why? Simple, they will attract investment much more easily than others.
So there is no more space for companies that do not have these commitments. In other words, they will attract less and less capital.
I also believe that the time has come for technology start-ups to show how such advances will contribute to the sustainability of the planet.
For example, I currently read many books through Amazon’s Kindle. Certainly the impact of this is much smaller than if I bought several copies of physical books.
It is clear how technology is contributing to sustainability, but we need to show these impacts for people to understand.
The advance of digital banking
When we talk about digital banks, there is no way not to think about how they contribute to the environment. We are talking about less branch construction, people working at home office, and this has a positive impact on the environment.
But how big is this impact? It’s past time for banks to make this calculation and show it to society.
The consumer needs to understand that technology is a huge ally of sustainability, not an enemy. That’s why I see that the startups that will win the race are those that will invest in technology and show the positive impacts.
