SAO PAULO – More than 14 million people are unemployed in the country. Even so, there are vacancies in the technology area. Trybe is one of the startups with an eye on the companies’ race for professionals such as developers – and it raised R$145 million (US$27 million) to expand its course catalog and attract more students.
The series B round was led by Funds Base Partners (which has companies such as Bytedance, Kavak and Zoom in its portfolio) and Untitled (created by a former partner of the Tiger Global fund). It also included the participation of investment company XP Inc.; Endeavor Scale Up Ventures, Global Founders Capital, Luxor and Verde; and Hans Tung, partner at GGV Capital.
Trybe was valued at R$1.3 billion in this round (US$252 million). O From Zero To Top, entrepreneurship brand of InfoMoney, spoke with co-founder Matheus Goyas about the creation of the online school, the technology training market and the next steps after the capital injection.
By 2024, it will be necessary to hire 70,000 professionals a year in the information and communication technology (ICT) sector, according to the Association of Information and Communication Technology and Digital Technology Companies (Brasscom). This estimate has been surpassed, with forced digitization by the pandemic of the new coronavirus. The sector created 107 thousand vacancies in the first half of 2021 alone.
“This gap between demand and supply has worsened for several reasons. A lot of money is being invested in Brazilian startups and they need to hire more people in technology. The more consolidated remote work has also led foreign companies to look to Brazilians as a good source of hiring in technology”, says Goyas.
More developers (and with shared success)
Trybe seeks to bridge this gap in technology professionals by training inexperienced people to become entry-level developers. The education startup (edtech) was created by entrepreneurs Claudio Lensing, João Daniel Duarte, Marcos Moura, Matheus Goyas and Rafael Torres in August 2019. Previously, they created AppProva – a tool for exam preparation sold to Somos Educação in 2017.
The technology school provides a web development course, with web development fundamentals modules, front end, back end and computer science. There are six hours of classes per day in 12 months, totaling 1,500 hours of course. The startup also recommends two hours of additional study a day.
In addition to the high workload, another flag of the edtech it’s your form of monetization. Trybe adopts a model known as shared success (income share agreement). Users only start paying for the course after reaching a salary of at least R$3,000 in the information technology area. The installments are 17% of the gross income earned.
On the other hand, the course costs BRL 36,000 in the shared success model, compared to BRL 18,000 in cash. The contract is annually adjusted by the IPCA and has a maximum term of five years. After this period, the debt matures, even if the student has paid only part of the amount.
The startup is not the only Brazilian company to provide courses to programmers through income share agreement. Other examples are Blue and Tera. The big benchmark International is the Lambda School, an American programming school that provides professionals for companies like Google and Microsoft.
Trybe claims that a differential for other schools with the shared success model lies in its risk alignment: the company set up at the end of March this year a R$50 million credit rights fund (FIDCs) to grant such financing. Goyas says the deal is the only subordinate shareholder of this FIDC. In other words, it becomes responsible for the fund’s risks, such as default and possible student failure.
“We are increasing our investment because we believe that Trybe is transforming the way education is offered in the region, reducing the distance between students and employers in the technology sector,” said Eduardo Latache, partner at Base Partners in a statement about the new investment. .
In just over two years of business, the technology school received 190,000 applications. 2,200 students passed, a 1.2% pass rate. Trybe analyzes which candidates are really willing to pursue their studies.
A total of 400 of these students have already graduated. Trybe discloses an employability of 94% of students after 30 days of graduation, from partnerships with more than 130 companies. Some examples are Ford, Localiza, Méliuz and XP. Companies don’t pay for connecting with new web development graduates.
New investment, new courses
It’s not Trybe’s first investment. The technology school had already raised a seed contribution of R$ 15 million and a series A contribution of R$ 42 million (understand the stages of growth of a startup).
The new round will be used to create other courses in addition to web development, scheduled for 2022 and 2023. Some topics being evaluated by the startup are data analysis and science, cybersecurity, product development and mobile development. Trybe hopes to reach around 3,000 students by the end of this year, and 6,000 of them in 2022. To finance them, a new FIDC must also be issued in 2022.
A few years from now, Goyas foresees a future in which demand and supply for technology professionals will be more balanced. “It’s a matter of time, even because of training initiatives like ours”, says the co-founder. Until the future arrives, Trybe continues its trajectory of ambitious funding and aggressive growth.
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