Brazil is thriving as one of the most connected and social countries with significant mobile penetration and social media influence. Consumers here are more likely to purchase products endorsed by influencers.

As Latin Americans, our entrepreneurial spirit is shaped by macroeconomic conditions; it's in our DNA.

There is excitement about monetizing beyond traditional ads and the platforms themselves, and about creating products. The rise of creator brands, which represent the future of consumer products, is particularly thrilling. This is like having a Unilever of brands, and it's already happening…

However, there are challenges. A significant power law exists in the creator economy. Creators are often not underwritten properly, making it difficult for banks and institutions to invest in the middle class due to lack of funding. However, this presents opportunities for companies like Spotter, which finances YouTube creators. They provide a revenue-in-advance model for working capital.

Brazil is an exciting region for the creator economy due to its incredible social media consumption. The country's advanced e-commerce penetration and the maturity of its creators contribute to this potential.

However, challenges lie in the advertisement industry. Creators earn significantly from brand promotions, making it difficult when they launch their own brands. Interestingly, Brazil sees positive results from micro and nano influencers with 5-100k followers.

There's a need for solutions that increase transparency and efficiency in the ecosystem. Tools that help determine the Return on Investment (ROI) on creators, drive sales, and track brand metrics are needed. Despite these challenges, optimism remains high for the development of this channel allowing brands to get closer to consumers.

Brazil's diversity is also an advantage. With many "Brazils" within Brazil, regional and local creators enable targeted local campaigns, saving on national campaign costs. Although creators sometimes struggle to create content that moves products, a mutually beneficial relationship exists between them and brands.

Given these factors, Brazil will be the world's most exciting region for the creator economy. There are also striking similarities between China and Brazil's social media consumption and behaviour.

COVID-19 accelerated the growth of Brazil's Creator Economy, providing more opportunities for individuals to monetize their skills through digital platforms. Despite democratizing content creation, the open nature of this space poses challenges in predicting success, especially in niche markets.

From an investor's perspective, the minimal barriers to entry in the Creator Economy pose substantial challenges. The vast openness of this space makes it difficult to predict who will succeed and what differentiates them, whether in curation platforms, monetization platforms, or community management. Furthermore, many of these ventures are highly specialized niche markets, which complicates attracting venture capital interest due to their limited mainstream appeal. These communities require constant engagement and stimulation, a task that is as crucial as it is challenging.

Creator economy is one of the greatest opportunities in Brazil. With the expansion of mobile, internet, and computers, people have started to spend more time online, and consequently, on social networks. Brazilians' attention to the internet is, for better or for worse, massive. According to data released by Atlantico, they spend 9 hours online. That said, the creator economy will become the largest form of communication and awareness of Brazil's economy.

What excites me the most today are solutions that empower a middle class of creators. Currently, there's a Pareto distribution where a significant portion of the budget goes to the top of the chain, meaning creators with the largest audience.

There's a segment that delivers significant results in the long tail, often focused on niches, yet still struggles to monetize due to the difficulty of large brands to conduct scalable campaigns and the lack of tools to facilitate the process. Companies addressing this inefficiency are the ones that excite me the most.

I see that the main challenge is understanding which companies are VC-backable. It seems to me that the long-term value capture of the creator economy lies more in the hands of large platforms (Meta, TikTok, etc.) than in the tools. Few companies will be able to achieve "unicorn" scale.