Pipefy: the Brazilian startup that conquered clients and investors worldwide

RIO DE JANEIRO, BRAZIL – From Silicon Valley, a startup called Pipefy sells its process management system to over 4,000 companies in 200 countries. This could be the success story of an American entrepreneur. But it is the story of Alessio Alionço, a Curitiba native who decided to create a global company from day one.

The journey so far has not been easy. Alionço had to undergo times such as the premature sale of his first business – classifieds website Acessozero, bought by Apontador in 2012. In his second startup, the entrepreneur met the distrust of international investors. Pipefy eventually succeeded, and currently has offices both in Curitiba (Paraná) and in Silicon Valley (United States).

Alionço tells the whole trajectory of Pipefy’s success; he talks about the challenge of taking part in a market in which only one winner takes it all; and gives tips for entrepreneurs to grow their business and conquer the world.

You sold Acessozero around 2012. You worked as a consultant, and shortly thereafter you came up with the concept for Pipefy. Why did you decide to become an entrepreneur for the second time?

Out of necessity. My first venture was cool and it was sold. But was it a “I got rich and I’m going to stop working forever” kind of sale? Not at all.

We had built a nice business, but it lost its market timing. As an entrepreneur, the feeling I got was like that of a player from Paraná Club, from any small club. It was as if I were at home, watching the Champions League final on my little TV.

I looked at those players and thought: “Man, I failed to play the Champions League of my life. At least, with this enterprise.”

We often wonder if we are living plan A in our lives, or if we are living plan B, C or D. At that time I had a lot of energy, a strong will to get project ideas off the ground. (…) I thought: I want to have a successful and international company, go public, buy competitors and make these companies grow.

There are many entrepreneurs in a tight market reflecting on whether to sell their business or to continue. How can they make this decision?

Entrepreneurs need to assess two things. First, what are their sector’s barriers for competitors to enter. Second, how intensive in physical operation or capital their business is.

If you were to ask me about a family that has a per-kilo buffet in a very good part of town and has loyal customers, I would say that it is a business that has little exposure to competition and can thrive over time. Now, if you have a retail store, a small pharmacy, a real estate company, or a digital business, know that there are many entrepreneurs and venture capital funds seeing opportunities.

Pure technology and software companies and their funds are looking at more and more leveraged competition and are leaving for traditional sectors.

I think that every entrepreneur has to assess medium and long-term trends to decide where the market is headed. And so they can decide if it is better to sell, raise capital, diversify, or if in fact the business is in such a strong position that a change in the macro or in the competition will not interfere with the success of that business.

It is necessary to think, because a leveraged and fast success leads the entrepreneur to become optimistic and lower his guard. This is what happened to me in my first company.

What advice do you wish you had been given when you started out as an entrepreneur, and what would you give to other entrepreneurs?

I mentor and I hear many early stage entrepreneurs talking about how they have a cool idea or have come up with a new technology product. I tell them to forget it. Customers don’t care about your software, your product, your technology, or your headquarters. Customers want their problem solved.

What matters is the value you deliver to customers and whether they are willing to pay for it. Sometimes entrepreneurs insist on having the tool in their hand and going out trying to find a problem. It is the opposite.

You have to grab a target customer with a problem; understand their dissatisfaction and how much it costs them to try to solve this problem; and actually go out there and solve it. Be sure that you will have to adapt your business plan. The quicker and more open-minded you are about this, the more likely you are to succeed.

LatAm Markets: Live Signals → — real-time movers, turnover leaders and FX across Latin America.