The Climate-KIC Innovation Scout program conducted an exploratory study in both Brazil & Mexico to assess the current state of the start-up scene in Latin America, focussing on whether the startup scenes in both countries are worthwhile investing time and resources to learn from and connect with.
Overall, the increasing activity both from the government and accelerators have led to more startup companies. There is a big difference between startups in university incubators –mostly high-tech hardware companies -, and startups accepted by private accelerators – mostly software startups that require low-investment to gain high growth. Brazilian startups are focused mostly on the internal market which is usually large enough for them. The barriers they face are mainly bureaucratic, complex tax systems and lack of business and marketing skills. Next to that, both seed funding and capital investment is difficult to acquire. Government initiatives try to ignite startups by providing them some startup funding, but after that startups have few options to continue.
We conclude that both startup scenes are very young and immature; little lessons can be learned. However, these start-up scenes are growing, vibrant and dynamic. Therefore, an eye should be kept on Latin America.
Read more in both reports below: