Five big ideas from my conversation with Rafael de Albuquerque, CEO & founder at global data analytics company Zoox Smart Data: how we built a $200M data giant without VC funding

Imagine starting a company without money, credit, or reputation. Fast forward to today, Rafael de Albuquerque, CEO and founder of Zoox Smart Data, transformed his journey from selling WiFi routers door-to-door to leading one of the largest data companies in Latin America. Zoox Smart Data now boasts $100M in revenue, serving over 1650 enterprise customers in 25 countries, including giants like Pepsi, Burger King, F1, BTG Pactual, PwC, and Telefonica. Here are some key insights from Rafael’s inspiring journey:

💎 Growing up as the youngest of eight siblings in a financially constrained family in Rio de Janeiro, Rafael dropped out of university to start his first business at 19. With no money or connections, he began by selling WiFi access points to hotels—an idea born out of necessity

🏨 Despite initial success, Rafael quickly realized that hotels wanted more than just WiFi equipment—they needed an integrated solution with a revenue-sharing model. By listening to his customers and understanding their needs, he pivoted his business to provide comprehensive WiFi services

📈 As his business grew, hotels began demanding free WiFi for guests, threatening his revenue model. Undeterred, Rafael pivoted again, developing a video-on-demand service for hotels. This venture faced its own challenges, including technical failures and investor skepticism, but Rafael persisted

💸 When traditional VCs offered term sheets filled with stringent conditions, Rafael opted instead for strategic investors like Pedro Moll. These investors brought more than just capital—they offered mentorship, strategic guidance, and industry expertise. Pedro Mall's involvement was instrumental in navigating the complexities of the business and provided the stability needed during turbulent times

👀 In 2016, Rafael made a bold decision to pivot once again, this time transforming Zoox from a WiFi management company into a data analytics and insights powerhouse. Inspired by the data revolution he observed during a visit to Silicon Valley, Rafael envisioned a platform that could capture and analyze data from WiFi networks to provide valuable insights. Despite initial skepticism from his investors, Rafael’s conviction and strategic vision paid off, leading to the creation of ZooxEye, a revolutionary data analytics platform

💪🏻  Zoox Smart Data achieved around $100M in revenue on just $12M raised. Rafael’s efficient management of resources, even during tough times, is a standout lesson for entrepreneurs aiming to build sustainable businesses

Here are the five big ideas from our conversation 👇🏻

1️⃣ Think Beyond Immediate Gains

Building a sustainable business means looking past quick wins and focusing on long-term value. It requires patience and strong relationships. Keeping solid connections with investors offers more than just financial backing; it brings valuable mentorship and strategic guidance. Trust and collaboration with all stakeholders are essential, as they significantly impact the growth and stability of your business.

2️⃣ Listen to Your Customers

Creating products based on customer needs rather than personal ideas is crucial for startups. Understanding the market and adapting to customer demands is key to successful innovation and pivoting. Let market feedback guide your pivots, and execute them confidently, even when faced with uncertainty.

3️⃣ Build Strategic Partnerships

Choosing strategic investors over traditional VCs can really pay off in the long run. These investors aren't just in it for the money—they look for ways to align with their own operations or future plans, which can lead to more supportive partnerships. This is often more beneficial than traditional VCs, who mainly focus on financial returns. Plus, strategic investors can offer a lot more than just funding—they can provide operational help, industry connections, and strategic partnerships, all of which are crucial for scaling your business.

4️⃣ Build a Strong Team

Rafael’s leadership style, characterized by leading by example and maintaining humility, is crucial for inspiring and motivating teams. Authentic and transparent leadership fosters a positive and productive organizational culture. Delegating responsibilities and trusting capable leaders can help founders focus on strategic growth and innovation.

5️⃣ Be Efficient with Resources

Zoox Smart Data reached around $100M in revenue on just $12M raised. Rafael’s approach to managing funds efficiently, even during tough times, highlights the importance of financial prudence. Staying lean and avoiding unnecessary expenses can help sustain a business through challenging periods.

Rafael’s book recommendation is Double Your Profits by Bob Fifer

You can watch the full interview with Rafael on Youtube 👀👇🏻

Or listen / watch the episode on Spotify 🎧

Before you go:

We’re excited to introduce a new section to our newsletter, where we’ll spotlight curious updates and news about our previous guests from The J Curve Podcast 👇🏻

iFood launched iFood pay and acquired delivery service over WhatsApp startup Anota aí. iFood CEO (then CFO) Diego Barreto joined us on the pod in April’23

Wellhub (former Gympass) reached 3M users and expanded the partner network. Wellhub co-founder Joao Barbosa, joined us on the pod in April

Here’s some content that I’ve been exploring recently:

This week’s book: Nudge: The Final Edition

I am a big believer that every startup founder should study behavioral economics and consumer behavior. Understanding these fields provides crucial insights into why people make decisions, often in ways that defy logic, and how these choices can impact everything from product design to marketing strategies and overall success. The final edition of Nudge is a great starting point. It's packed with practical insights on predicting and influencing customer behavior, helping you make smarter business decisions and set your startup on the path to success.

This week’s podcast:

Invest like the best with Hemant Taneja, CEO and Managing Director of General Catalyst  (GC)

GC's investment thesis of building resilience across critical industries like healthcare, energy, defense, and manufacturing resonates with me. Great founders love tackling tough problems, and many surface-level issues in developed countries are already solved. It's time to focus on foundational sectors, aligning with the core mission of venture capital: to fuel groundbreaking solutions for the toughest challenges.

Another thing I found interesting is GC’s approach to company building and incubation, as well as offering alternative financing for predictable expenses like growth marketing. As a firm believer that the classic VC model is ripe for disruption due to its rapid commoditization, I see GC's strategy as something worth studying

This week’s chart:

Wild stats.

In H1’24 the sales of electric vehicles in Brazil surged by 146% compared to the previous year with over 91% of Brazil’s EV imports coming from China. 🤯 In April alone Brazil imported 40,9k electric and hybrid vehicles from China, 13X more than in April 2023. Chinese firms BYD and GWM  have been pivotal in shaping Brazil’s market. They have set up production facilities and flooded the market with affordable vehicles and plan to transition from importation to local production by 2025.

Thanks for reading,

Olga