Latin America The New Camel Startup Frontier and its Global Impact

However, opportunities for startups continue to be limited at the regional level, due to the high level of competition to attract the attention of investors, which makes it difficult for most emerging companies to reach the category of unicorn companies, forcing them to use other corporate models to ensure their continuity.

Nowadays, more and more startups are rethinking their objectives to ensure greater adaptation to possible changes in the market, and have therefore adopted a corporate model called camel company, which has become an increasingly common trend in the business world.

What is a camel company?

Camel companies are one of the most striking corporate models nowadays, for providing emerging companies belonging to all market sectors, the possibility of guaranteeing their survival, by applying strategies directly focused on sustainability, to ensure a more secure and structured growth.

It is important to mention that startups considered camel companies are able to effectively exercise their administrative and commercial functions, in addition to maintaining their profitability indexes, even in the most unfavorable conditions, since they maintain a balance between corporate growth and income perception, in order to prevent risks.

Latin American companies are familiar with the philosophy and business model applied by camel companies because they remain in operation in unstable markets with unfavorable conditions for corporate development, as well as because they produce value-added products for a regional audience.

Impact of camel enterprises

Although, until a few years ago, the goal of startups related to the technology sector was to become unicorn companies such as Dlocal, the truth is that the global crisis and the economic recession generated showed that only companies that manage their resources well and have a solid business structure can survive in this type of scenario.

On the other hand, large investors are increasingly interested in companies that are able to generate higher profitability rates and incorporate added value to their products in order to protect their capital, so more and more startups have made the decision to become a camel company.

It is worth noting that even some of the most important and internationally recognized unicorn companies, including Amazon, have decided to adopt the corporate model implemented by camel companies in order to minimize the possible risks generated by changes in the economy and the market.

In the same way, the aforementioned corporate model also gives emerging companies the possibility of prolonging their lifespan as much as possible by ensuring balanced growth, by implementing strategies that allow them to make key investments, without the need to harm or compromise their income perception and profitability.

The corporate model employed by camel companies is specifically designed to guarantee their operation and survival in adverse conditions, including the total lack of investors, thus making it safer for any emerging company, by minimizing the possibilities of risks generated by numerous external factors.

But this is not all, as becoming a camel company is also a very favorable option for most of the emerging companies present in the modern market, due to the fact that this type of startups is characterized by its preventive strategies, which guarantee long-term success, regardless of the economic conditions.

Main camel companies in Latin America

It is possible to distinguish numerous camel companies from Latin America available in the modern market, being the Colombian company B2CHAT one of the most internationally recognized cases, for its resounding success in the field of digital communication services and instant messaging, founded by Victor Saldarriaga, Pedro Jaramillo, Pamela Richter, Jonathan Alvez and Jaime Andrés Gutierrez.

Likewise, B2CHAT is a startup that is characterized by applying a corporate camel company scheme from the beginning, by prioritizing its permanence and saving enough revenue to adequately prepare for a wide variety of economic and corporate threats, including financial recessions, price drops and reduced demand.

Another less popular case of a camel company in Latin America is the Chilean technology security start-up Hackmetrix, founded by Adriel Araujo and Alejandro Parodi, led by Florencia Kier Joffe has achieved great innovations in its field and has been able to organically attract a large number of clients from all over the world.

Hackmetrix has also applied very cautious investment strategies to ensure strategic and balanced growth, which has allowed it to meet all necessary expenses without the need to harm its financial situation or its operation.