Tech Roundup: Startups could be the future of Brazil’s energy sector

This week’s topics: Brazil’s energy-tech tries to grow through startups. Hub strengthens innovation in Brazil’s North region. Startup focuses on used cars amid heated market.

Brazil’s energy-tech sector seeking growth amid crisis

Brazil is currently facing the threat of a severe energy crisis, with experts warning that without a drop in consumption, the country could be forced to ration electricity or see power cuts. While the short-term solution has been to increase reliance on the more polluting and expensive thermal energy plants, renewable sources and a burgeoning startup ecosystem could offer answers for the long haul.

Record year. According to the 2021 Energy Mining Report published by think tank Distrito, 2020 was a record year for the global energy-tech market. In 2020, these companies raised a total of USD 34.6 billion worldwide across 848 investment rounds. 

• In Brazil, investment in the first six months of this year surpassed all those made between 2016 and 2020. Over USD 66 million has been injected in the sector so far, 862 percent more than in 2020.
• Renewable sources gobbled up USD 62.4 million over the past five years.

Still trailing. Brazil is still lagging behind the rest of the world, however. Globally, energy-techs raised USD 21.4 billion in 468 investment rounds this year, with two-thirds of the money going to companies in the U.S. and China.

Room to grow. About 80 percent of the investments made in the sector were in the early stages, involving angel and seed capital. 

• “Undoubtedly, as industry startups reach the necessary milestones in their business models, bigger rounds should happen,” stated the report.

Hub strengthens innovation in Brazil’s North

Brazil has a booming innovation sector, with a total of 13,865 startups according to latest figures. In this scenario, innovation hubs play an important role to bolster the growth of the entire ecosystem, helping to foster cutting-edge ideas and projects at the regional...