Despite the many economic challenges facing Brazil, the startup scene in Latin America’s largest country is thriving. Over a quarter of Brazilian startups are concentrated in São Paulo – not surprising, given that the financial capital is considered the world’s 12th best city for startups.
However, other hubs are emerging, like Florianópolis, São José dos Campos, and Uberlândia. And while the startup boom certainly comes with its risks, the rate of Brazilian startups calling it quits before their first anniversary – 25 percent – doesn’t differ much from the global average of 23.4 percent.
Notwithstanding Brazil’s draconian tax legislation (when an investor sells his or her shares, Brazilian Revenue Authorities claim up to one-third of the money in taxes), investors continue to pour money into new projects that could become the next NuBank, a fintech company that raised $80 million in private investments last year. And according to Anjos do Brasil, an NGO dedicated to stimulating angel investment, over 851 million BRL was injected into Brazilian startups in 2016 alone.