LivUp Raises more Capital and says it is “Very Close” to Breakeven
LivUp, In 2014, large companies invested R$240 billion in paid media on TV and R$115 billion in digital channels alone. Last year, the pie collapsed: media spending on TV collapsed to R$160 billion, and digital media nearly tripled to R$325 billion.
This shift in acquisition channels has created a headwind: the number of creatives needed to run campaigns across multiple digital channels has skyrocketed. “To run a marketing campaign on TikTok, Instagram, Google Ads, and Taboola, businesses need a lot of pieces that they can no longer manage just with the teams they have,” said Daniel Dahia, co-founder of Faster. , in Brazil Journal.
Today, these advertisers have three alternatives: call on a marketing agency, “but they don’t have the flexibility and don’t even want to do this basic job”; the use of professionals in independent markets, which “creates a purely transactional relationship”; or increase their internal teams, “but this takes time and at a very high cost”.
Faster offers a fourth method: produce parts quickly and customize them at a price suitable for any advertiser. The startup already serves 70 regular customers, including names like Ambev, L’Oreal, and Nubank, and unicorn companies like iFood, Hotmart, VTEX, and unico. Companies buy “creative credits” which entitle them to different pieces of design (the more complex the piece, the more credits are consumed). The minimum is 30 credits per month, which costs R$8,000.
The price is attractive, Daniel says, because the company would spend more than that just to hire a designer. Faster operates as a kind of “managed marketplace”: it brings together teams of three to five designers who are at the service of clients.
The startup will earn 6 million reais this year and plans to triple its revenue next year, when the (text) writing services, which the startup recently started offering, were supposed to pick up steam. To that end, Faster has just raised a funding round to accelerate its expansion and investment in technology.
The R$8 million fundraiser was led by DOMO Invest and involved angel investors including Dafiti CEO Andre Farber. Faster was born from another company created by the founders. In 2017, the founders realized that many dentists, doctors and lawyers wanted to be present on social networks but had difficulty designing posts.
“We set up a Whatsapp hub, where these professionals ‘brief’ what they wanted and we deliver it to them. We had an in-house agency that produced the parts,” explains Vitor Philippe, the other founder. hit by the pandemic, these professionals have struggled and demand has plummeted.
“Our income went from R$120,000 a month to less than R$20,000. We owed the bank, we owed Facebook, and we had to lay off a third of the staff.” The solution was – as always – to run the business.