The vast majority of business people, when they need credit, know the way of the cross: call the bank, have a coffee with the manager at the branch, cry the pitangas to get a good loan, negotiate interest rates, offer guarantees… suffocating environment that Virgo, a marketplace that connects medium-sized companies to the capital market, reached the first billion operations on its platform.
Instead of bank loans, the startup’s proposal is to connect entrepreneurs with 260 investors, funds, managers and family offices to meet the growing demand for cash at lower costs. According to Virgo’s CEO, Daniel Magalhãesthe company will reach R$ 3 billion this year, driven by the real estate, agricultural, industry, energy and receivables sectors.
Last year, Virgo received an investment of R$ 40 million from XP Investimentos. “The potential is practically infinite, as Brazilian companies currently have more than R$300 billion in bank credit and will need even more resources to grow”, he said. The horizon of expansion is indeed immense. From January to November 2021, the capital market concentrated more than BRL 500 billion in offers, 67% more than in the same period of the previous year.
In addition, the offers that are still under analysis and in progress total R$ 13.8 billion, according to the Brazilian Association of Financial and Capital Market Entities (Anbima). At this rate, banks will have to reinvent themselves sooner than expected.
(Note published in issue 1258 of Dinheiro Magazine)
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