Brazil’s tech startup growth and innovation hailed by industry commentators
RIO DE JANEIRO, BRAZIL – Previously hailed by Forbes as one of the most entrepreneurial countries in the world, Brazil’s innovation and technological advances continue to gain more traction. As with many entities, the goal is often to expand and do business with other countries, such as the US. Conducting international trade, however, generally requires knowledge on trading on the US Forex market.
This is mostly due to the fact that the dollar is the widely accepted currency for trade, and it ultimately affects the operations and logistics of entities that are looking to increase their reach and global footprint.
This concept is particularly important for startups to grasp, as they often do not have excess funds to gamble with. As such, having a holistic view of the markets and the impact on supplier and customer activity is crucial. Now that companies operate in the so-called global economy, effective management of Forex can greatly impact the company’s bottom line.
COMPANIES THAT CONTINUE TO PAVE THE WAY
While there are many tech startups that actively contribute to Brazil’s economy, there are a few that stand out and have been praised for their role in the industry. With the growing need for convenience and on-demand services across the globe, tech startups continue to play an important role in fulfilling those needs.
For example, Brazil’s food delivery service, iFood recorded a 116% growth in 2019. At the time, it reportedly accepted a whopping 390 000 daily orders. Similarly, Buser has also been lauded for being an industry game-changer, offering cheaper bus services through linking customers that are headed in the same direction or to the same destination.
Before 2020, tech startups as a whole were projected to continue to grow from strength to strength. However, several entities were undoubtedly impacted by the global conditions of 2020, which nobody could have predicted. Despite this, some reports claim that Brazilian startups are securing more funding post-2020, unlike in many other parts of the world.
INVESTMENT AND SUPPORT STRUCTURES
It is believed that currently, most of the country’s tech startup activity is in São Paulo, which is where investors and the government look to with the intention of ensuring the development of the industry players.
One of the main challenges faced by many startups in any industry across the globe is funding. In addition to the initial capital investment, operating funds and overall support are also to be considered. For any entrepreneur or owner, having a dependable support structure is crucial for the success of the business.
Of late, it is reported that equity crowdfunding in Brazil is fast gaining traction, with many tech startups said to be looking for funding alternatives during an uncertain business climate. Venture capitalists have also heeded the call to step up and support emerging tech companies, with the likes of Redpoint eVentures, Kaszek Ventures, Valor Capital and Monashees being some of the most notable.
In addition to the support offered by private investors, the government is also said to be contributing through various programs and, most recently, through the passing of the legal framework for startups. The framework seeks to encourage innovative startups, whilst also incentivizing those who invest in startup tech companies.
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