Pepijn Veling visited Brazil to assess the current state of the start-up scene.
The study is part of a wider exploration of the startup-incubator-accelerator-investor scene throughout Latin America. The goal of the trip to Brazil was to explore whether the Brazilian startup scene is worthwhile investing time and resources to learn from and connect with it.
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.
The conclusion is that the Brazilian startup scene is very young and immature; little lessons can be learned. However, the Brazil start-up scene is growing, vibrant and dynamic. Therefore, an eye should be kept on the Brazil start-up scene.
Read Pepijn’s presentation by clicking the link down below: