Brazil
São Paulo
São Paulo represents the most robust innovation ecosystem in Latin America. With a highly skilled workforce, diverse population, and a business-friendly market, startups have all they need to be successful
Highlights
São Paulo is the largest economic and industrial center in the southern hemisphere and a vibrant startup hub. Brazilian startups were the target of about 61% of all funding rounds in Latin America in 2023. A population of more than 22 million people and the density of São Paulo provide founders with a large market and ample opportunity for networking. Success stories include renewable materials producer Klabin raising $1.3 billion over two rounds, most recently in October 2023, and Proptech marketplace Loft raising $888 million raised over seven rounds, most recently in August 2023. Logistics provider Emergent Cold Latin America raised a $500 million round in December 2023. São Paulo is home to 11 unicorns.
Innovation and data centers of global titans including Microsoft and Google are also based in São Paulo, as well as the regional headquarters of Airbnb, Netflix, and Amazon. According to Arizton, the Brazilian data center market was valued at $3.11 billion in 2023 and is expected to reach $4.72 billion by 2029. There are 68 existing and 21 planned data center facilities in the country, with São Paulo being the nation’’s primary data center hub.
The University of São Paulo was ranked the second best university in Latin America in 2023 by the Times Higher Education, providing a pipeline of STEM talent. ACE Ventures has accelerated more than 450 startups and made more than 148 investments to date.
Ecosystem by the Numbers
Sub-Sector Strengths
Fintech
In 2023, Fintech alt.bank launched the Hack the Favela project, a free digital programming course to residents of disadvantaged communities in the city of São Carlos, in the interior of the state of São Paulo in an effort to fill a projected 797,000 open Fintech jobs by 2025. Online payment platform Mercado Pago raised $466 million in a November 2023 round. Fintech Clara raised $408.5 million over seven rounds, including an April 2023 Series B.
Edtech
The German-Brazilian EdTech Hackathon is an annual event at which experts from Brazil and Germany collaborate to create innovative solutions to digital education challenges. The second edition was held in São Paulo in May 2023. Bett, the world’s largest Edtech event, was held in São Paulo in April 2024. Edtech platform Principia has raised $45 million over three rounds, including one in August 2023. Edtech financial platform Educbank has raised $78.2 million over four rounds, including one in August 2023.
Agtech & New Food
Agtech is a growing sub-sector in Brazil, representing 48% of the country’s exports and employing nearly 20% of its workforce. AgTech Garage is one of the most important Agtech innovation hubs in Brazil, with a mission to increase the sustainability and competitiveness of Brazilian agribusiness. The World Agri-Tech South America Summit took place in June 2024. AgriAcordo, a B2B digital agro-inputs market, raised $1.6 million in a March 2023 seed round.
Reasons to Move Your Startup to São Paulo
Large Market
São Paulo is the most populous city in South America with a population of more than 22 million people. Brazil has the largest consumer market and GDP in South America, and a large portion of its population and economic activity is concentrated in the states of São Paulo and nearby Rio de Janeiro and Minas Gerais, providing a huge market for São Paulo-based startups.
Strategic Location
The Port of Santos, Brazil's biggest and most important port, connects over 600 ports in 125 countries. Startups in São Paulo have good access to international logistics links including São Paulo International Airport, which received around 41.3 million passengers in 2023. With similar working hours to the United States, Mexico, and Canada, São Paulo is an attractive destination for nearshoring.
Educated Talent
São Paulo is home to 9 million students in higher education. The University of São Paulo, Brazil was ranked the second best university in Latin America in the 2023 Times Higher Education’s list of the world’s best universities. The University of Campinas, São Paulo is an established medical and scientific research center. It is also among the 100 most sustainable universities in the world.
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