The Startup Ecosystem of Brazil

Brazil is a leading Latin American startup economy due to its massive size and market potential. The country has earned its place on the map with plenty of unicorns, such as Nuvemshop, Olist, and MadeiraMadeira. Large corporations contribute to the favorable startup climate by providing accelerator programs and incubators as well as strong funding opportunities. Headquartered within the ecosystem is Nubank, the largest financial technology bank in Latin America and one of the world’s largest digital financial services platforms. As of 2023, the bank was reported to have 80 million customers across Brazil, Mexico and Colombia, representing a 33% increase in its customer base.
To further advance its startup economy, Brazil can benefit from improvements in several areas. To name a few, reducing high-interest rates, improving the level of English proficiency, and executing much needed business reforms will unlock the country’s potential. It’s encouraging to see public policy initiatives such as InovAtiva Brasil, StartOut Brasil, and Capital Empreendedor, as well as new legal frameworks for startups that are aimed at supporting and promoting startup expansion. Brazil also boasts a number of government organizations, such as Invest.Rio, Invest São Paulo, and Agência Curitiba de Desenvolvimento e Inovação. that are involved in promoting the startup ecosystem and attracting investment. For Brazil to maintain its startup ecosystem development and encourage more startups, public institutions should keep focusing on promoting the country to foreign investors and entrepreneurs. The fact that foreigners can now obtain a Permanent Visa (VIPER) indicates that the country is making progress. In addition, Brazil could benefit from further developing startup ecosystems in more cities across the country to foster innovation outside of Brazil’s major hubs.
Considering the vast potential of the market and a population of more than 200 million people, Brazil’s tech ecosystem meets all the prerequisites for rapid growth. This is demonstrated by a growing number of unicorns, most of which cater to the local market. As the country has the advantage of having vast areas of arable land, startups in the agricultural industry are gaining more traction. The government supports this sector, and initiatives such as Radar AgTech Brasil provide insights into how the sector has developed in recent years. We can only hope the pro-business climate endures while Brazil maintains, protects, and leverages the unique natural resources of this beautiful country to expand the reach of its startups beyond the local market.