Brazil’s new startup framework: progress or a missed opportunity?

The federal government has ratified a new legal framework including regulations for startup companies in Brazil. However, experts warn that the legislative changes are too shallow to make a meaningful difference

startups framework progress or a missed opportunity
Image: Ideldesign/Shutterstock

This week, President Jair Bolsonaro signed a bill into law creating a legal framework for startups in Brazil. The new legislation aims to modernize the country’s business environment and boost innovation in what is already a burgeoning sector. 

In the words of the Economy Ministry’s competitiveness secretary Bruno Portela, the new framework will benefit Brazil’s startup ecosystem by “allowing for more investment capital inflow, greater legal security for entrepreneurs and investors, and an easier path for startups to do business with governments. Here are some of the core points of the framework:

  • To be legally considered a startup,...
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