Florianópolis: A Model for Mid-Sized Innovation Hubs
Florianópolis may be most well known internationally for its natural beauty and world-class beaches. But the city has much more to offer than sun and sand. Over the last decades, the southern Brazilian city has transformed itself from primarily a tourist destination into an innovation hotspot.
Among Brazil’s state capitals, Florianópolis is the national leader in tech contribution to GDP, with the sector representing 25% of its economy. The city’s tech economy has grown 23.4% since 2018 and now ranks 7th nationwide in absolute terms, despite its smaller population compared to other major tech hubs. The ecosystem boasts up to ten times more startups per capita than São Paulo and is home to more than 6,000 tech companies that generate more than 38,400 direct jobs. From 2020 to 2024, early-stage funding here grew 19%, driven by Fintech startups like Payface and Parcela Mais.
Florianópolis’s evolution from a paradise for travelers to a paradise for innovators is impressive. It holds lessons for other mid-sized cities looking to turn constraints into opportunities, and refocus their economies on knowledge and technology.
Laying the Foundation: Tech Talent
“It's important to highlight that most of Florianópolis' territory is in an environmental preservation area, making it impossible to install medium- or large-sized industries in the municipality,” says Alexandre Souza, current Innovation Manager at Sebrae Santa Catarina and creator of StartupSC, one of Brazil’s most influential public programs for early-stage tech startups. He also created the national Sebrae Startups, a platform dedicated to accelerating innovative companies across Brazil with a commitment to transforming early-stage businesses into successful scaleups.
So how did Florianópolis refocus its economy on innovation given this limitation? The roots of Florianópolis’ tech boom go back to the 1960s with the founding of the Federal University of Santa Catarina (UFSC). This began to build a store of science and tech talent, which later initiatives drew upon.
In the mid-1980s a deliberate and strategic push to transform the local economy began. The city began investing in innovation infrastructure, catalyzed by a collaboration between government, academia, civil society, and private sector leaders. Celta, the first incubator in Brazil dedicated to tech businesses, was founded in the city in 1986. “The vision of municipal leaders in the late 1980s was fundamental in laying the foundation for the innovation ecosystem we have today in the city,” says Topázio Neto, Mayor of Florianópolis. “At that time, local leaders understood that due to the island's geographical and environmental limitations, the path to sustainable development would be through investment in intelligence and innovation.
The vision of municipal leaders in the 1980s allowed the city to focus on attracting and retaining creative and talented young people, creating a favorable environment for the growth of startups and tech companies.
Over time, an impressive array of tech training programs sprang up. Floripa Mais Tec provides free technology training. The Young Programmer Program is designed to teach programming from the basics and has an expected enrollment of over 5,000. The Federal Institute of Santa Catarina in Florianópolis (IFSC) also provides a wide array of tech courses. Its partnership with Digital Innovation One (DIO) has been key in connecting tech talent with innovative companies. Over seven years, DIO has trained 1.7 million students and professionals globally – with three thousand located in Florianópolis – increasing access to tech opportunities for individuals from marginalized groups.
Speaking about the growth of web training and support programs, Daniel Leipnitz, a leader in the ecosystem and board advisor at the Santa Catarina Technology Association (ACATE), says, “What made the difference wasn’t just programs or infrastructure — it was a change in mindset. We created a culture of collaboration, where people helped each other without expecting anything in return.”
What made the difference wasn’t just programs or infrastructure — it was a change in mindset. We created a culture of collaboration, where people helped each other without expecting anything in return.
ACATE is the main representative for innovative entrepreneurship in the region, bringing companies in the sector together for shared growth.
The Florianópolis ecosystem supports a diverse range of startups, but thanks to its deep university ties and legacy of solving complex problems through applied research, its core strength lies in knowledge-intensive, B2B-focused ventures that specialize in software, data, and digital infrastructure. Key examples include SaaS companies RD Station and Softplan, which acquired São Paulo-headquartered legal digital monitoring and data analysis platform Deep Legal in 2024.
This also explains the prevalence of ventures with strong technical foundations and scalable digital business models. Fintech is particularly well represented in the ecosystem, with top fundraising rounds such as Parcela Mais’ $8.88 million Series B and Franq’s nearly $12 million Series A coming from the sub-sector. “Florianópolis pioneered business incubators and innovation centers,” says José Eduardo Fiates, Director of Innovation and Competitiveness at FIESC and Superintendent of IEL/SC. “We are home to the first incubator in Brazil and the first business condominium – all of which created infrastructure to support entrepreneurs and strengthen the ecosystem.”
Florianópolis has long been recognized as one of the best cities in Brazil in terms of safety, health, education, leisure, and good gastronomy, aspects that are fundamental in choosing a place to live, especially for creative and talented professionals and entrepreneurs.
The Disruptive Power of Good Governance
Another pivotal moment arrived in 2003 when Florianópolis' city government decided to lower the Municipal Service Tax (ISS) for tech companies from 5% to 2% — as low as federal law allowed. This decision incentivized many tech companies to relocate to the city, particularly from places like São Paulo, where the ISS rate remained at 5%.
The city was one of the first in the country to approve a Municipal Innovation Law which, among other mechanisms, established the Municipal Innovation Board. This official governance body for the local ecosystem includes representatives from more than 20 different organizations involved in innovation in Florianópolis, which debate and define local strategies for promoting innovative entrepreneurship. The organizations have been instrumental in creating a supportive infrastructure for startups, including specialized verticals and incubation programs. Access to investment networks such as Sapiens Parque, ParqTec Alfa, and various coworking hubs and private accelerators deepen the support..
When you are building an innovation ecosystem, “a strong, inclusive, and agile governance structure is the foundation,” says Leipnitz. In 2015, the Government of the State of Santa Catarina also began implementing a network of innovation spaces. Today, Florianópolis Innovation Network includes four innovation centers in different regions of the city that are home to both early-stage ventures and established tech companies. The presence of corporate R&D centers, innovation labs, and industry associations fosters collaboration across sectors. This physical and institutional density has supported the emergence of a generation of startups with global potential.
Thanks to these various steps, Florianópolis was recognized as the Startup Capital of Brazil by federal law in 2024. The city now has the highest concentration of jobs in technology companies in the country. “A key factor in the success of Florianópolis’ innovation ecosystem is the cooperative work among the city’s different stakeholders, both public and private sectors,” Neto says. “The result of these decisions and initiatives is a model innovation ecosystem, with startups and technology companies developing innovative solutions. The public sector has a duty to encourage this growth. That’s why we created several incentive programs, as well as training opportunities for young people to enter this job market.
The Importance of Culture and Quality of Life
The ecosystem’s trajectory has been defined not only by public policy or academic excellence, but by the emergence of an entrepreneurial culture that values long-term commitment, knowledge sharing, and collective progress.
Another defining feature of the ecosystem is its focus on early-stage startups, from ideation to Series A. Sebrae SC, a private non-profit organization that supports and promotes the development of small businesses in Brazil, and ACATE run multiple programs aimed at pre-seed and seed-stage ventures, helping entrepreneurs validate ideas, structure go-to-market strategies, and gain access to initial funding. The ecosystem is designed to reduce friction for early entrants while providing structured pathways toward scale. The result is a city that consistently attracts venture capital — $298 million in total from 2020-2024 — and shows one of the highest startup densities in the country.
Florianópolis also offers a strategic location with high quality of life. This is a key strength, according to Souza, which allows the ecosystem to develop, attract, and retain ventures, entrepreneurs, and talent. “Florianópolis has long been recognized as one of the best cities in Brazil in terms of safety, health, education, leisure, and good gastronomy, aspects that are fundamental in choosing a place to live, especially for creative and talented professionals and entrepreneurs,” he says.
Lifestyle considerations are particularly important in a world where remote and hybrid work has become more common. According to a 2025 study by Sebrae Startups Observatory and ACATE, 100,000 new tech jobs are projected across the State of Santa Catarina by 2027, with 67.5% of these roles expected to be either hybrid or fully remote. Florianópolis, with its natural beauty, infrastructure, connectivity, and high quality of life, is ideally positioned to lead this trend, further reinforcing its role as a talent magnet in Latin America.
“There is no doubt for me that the first factor is the quality of life that the city offers, especially for young talents who value these aspects of their lives,” says Fiates. “Quality of life is a key factor that ends up retaining brilliant young people.”
A Global Model for Mid-Sized Cities
More than an economic success story, Florianópolis is a model for mid-sized cities seeking innovation-led growth. In 2024, it was ranked the top emerging tech hub in Latin America by fDi Magazine and the Association for Private Capital Investment in Latin America (LAVCA), based on its density of VC-backed startups.
What sets the city apart is not just infrastructure or policy — but its capacity to build consensus, align long-term vision, and maintain a cohesive ecosystem driven by shared purpose. Florianópolis is an island city that turned its constraints into strategic advantages and built one of Latin America’s most admired innovation environments.
The ecosystem aspires to position itself globally as a model of sustainable, collaborative, and human-centered innovation. Unlike major urban centers, Florianópolis offers a unique combination of high quality of life, environmental preservation, and a dense, interconnected network of startups, research institutions, and support organizations.
Looking ahead, Florianópolis aims to leverage its unique attributes to attract international talent and investment. By doing so, the city seeks to join the ranks of globally-recognized innovation hubs, offering a compelling alternative to traditional tech centers.