Startups pitch solutions for public service challenges

The São Paulo State Government in Brazil has selected 15 technology startups with innovative business plans in areas considered priorities for the state, such as health, education and citizens' facilities.

By Elton Alisson  |  Agência FAPESP – A medical kit that can be used to perform the main tests for chronic non-communicable diseases (NCDs), such as diabetes and cardiovascular disease, interpret the results and produce a full risk assessment for the patient, all in 20 minutes.

A platform that provides access to patient records, including consultations and exam results, all in one place, and sends patients customized reminders to take prescribed medicine, and a computer platform that can pinpoint potential dengue hotspots a month in advance and within a radius of 400 meters are only some of the innovative projects presented by tech startups to the São Paulo State Government in Brazil in a pitching competition designed to help authorities address challenges in health, education and citizens’ facilities.

The three projects mentioned were among the 15 finalists in the first edition of the Pitch Gov SP, a program launched in September to map and select startups with innovative business plans in areas considered to be priorities for the state.

On November 17, the finalists pitched their solutions to representatives of the São Paulo State Government, leading entrepreneurs and potential investors at an event held in Palácio dos Bandeirantes, the governor’s official residence.

“We’re very pleased with this first edition of the pitching competition, for which 304 projects were enrolled in strategic areas for the population of São Paulo,” said Governor Geraldo Alckmin during the event.

“São Paulo is a country-sized state. Its GDP and population are both bigger than Argentina’s. We need good solutions to serve the population.”

A panel of experts heard pitches by the 15 selected startups at the event and will now analyze the possibility of implementing them in the public sector.

Area subcommittees will draft reports on the feasibility of the presented solutions by the end of this month for evaluation by the responsible state government departments, with recommendations regarding the projects deemed most suitable for formal contracting.

The departments will have another month to agree with the startups on a procedure for the testing stage.

The startups whose projects are approved will be able to apply for support to the São Paulo State Innovation Fund, newly established by Desenvolve SP, the state development agency, with a budget of R$105 million. FAPESP is a contributor to the fund, alongside Sebrae-SP, the Brazilian Innovation Agency (FINEP), and the Latin American Development Bank (CAF), among other investors.

The startups must present business plans and constitutive documents to SP Ventures, a venture capital firm hired by the government to analyze investment opportunities.

Desenvolve SP offers other special lines of financing for innovation besides the fund, with low interest rates and long-term repayment options.

“In addition to Desenvolve SP, which offers financing to stimulate innovation, São Paulo State also has FAPESP,” Alckmin said.

All 15 presented projects had already been analyzed by the government departments involved as well as by the Brazilian startup association ABStartups.

They were selected on the basis of criteria such as whether they had functional prototypes and genuinely addressed the proposed challenges. The selectors also assessed the maturity of the projects concerned, management experience, business models, and scalability (outreach and cost per user or customer), as well as the real feasibility of implementation.

Education was the area with the largest number of candidates, with 136 projects enrolled.

“We hadn’t decided in advance how many startups would be selected,” said Karla Bertocco, Head of Partnerships & Innovation in the São Paulo State Department of Government.

“The next step is to analyze each solution and whether it really can be commercialized or implemented by government,” Bertocco told Agência FAPESP.

New edition

Alckmin announced during the event that the state government is preparing a second edition of Pitch Gov SP, which will focus on culture, sports, urban mobility, energy, and basic sanitation.

“In urban mobility, for example, 7.5 million people use the metro and overground train systems in our state capital every day. We want to partner with startups to pursue solutions for improved quality of service for our citizens at a lower cost,” Alckmin said.

According to Bertocco, FAPESP will help prioritize the technological challenges to which startups will be invited to respond in these new areas.

“It makes sense for FAPESP to support some of the projects presented by startups, but not all, so we want FAPESP to help select those that interface most with what it already supports,” she said.

Partnership with government

André Diamand, who heads ABStartups, said other states are interested in implementing similar programs to Pitch Gov SP.

“There are over 4,000 startups in Brazil, and partnering with government means scale, which is most important for any incipient business organization,” he said during the event.

For Romero Rodrigues, founder and chairman of leading price comparison site Buscapé, famous as one of Brazil’s most successful startups, governments help startups take off more quickly when it shares the task of addressing the challenges of better public service delivery.

“Governments can be innovation platforms for startups, enabling them to reach out to larger segments of society with a bigger impact while also adding value to their business,” he said.

“In return, startups can help make governments more agile, faster and more efficient.”