When it comes to investing in Brazilian startups and the innovation market in Brazil, we are ahead of many countries. This is because Brazil is the second country in the Americas in terms of the number of unicorns (second only to the USA) and the eighth in the world ranking, with about 15 startups that have already surpassed the $1 billion mark*.
In recent years, technology applied to the innovation market has brought attention to Brazil, which has seen the emergence of a series of rapidly growing solutions and businesses – a movement that attracts investors to the country.
Milan K., Founding Partner at Mantis, investor in Trace, shared his view on Brazilian and Latin American entrepreneurs at Trace Connect – Brazil VC Week Edition – and stated that he sees great potential in the region: “Not only because it represents a huge opportunity in terms of GDP, but also because there are these entrepreneurs with a sense of restlessness, who solve existing problems in the region and can be totally game-changing”.
Foreign investments in Brazilian startups
More than proving the value of the Brazilian innovative ecosystem by illustrating the herd effect of VCs towards our fertile lands for investing, it is possible to present some particularities that make our country a great business farm with high scalability potential.
The fifth largest world population and a large and heterogeneous consumer market become a window for the creation of several commercial opportunities for businesses, which often start in Brazilian lands and expand to other countries, as is the case with Nubank, a national company with a presence in Brazil, Mexico, Argentina, Colombia, the United States, and Germany.
Moreover, as we have already discussed on Trace’s blog, FOMO or Fear of Missing Out also attracts investors, who seek opportunities in the national territory, where it is increasingly possible to find big bets. Quinta Andar, Nuvemshop, Loft, Loggi, and iFood are examples of large startups that emerged here and stand out in the innovation ecosystem of the region.
All of this, combined with some data that demonstrates a recovery of the Brazilian economy in this post-pandemic period, a positive point for investors, with an average growth rate of 1% of GDP in the first quarter of 2022, according to CNN Brazil. The number is higher than that of countries like the USA and the United Kingdom, which translates not only into a potentially advantageous potential for investments but also into a blue ocean of business opportunities.
Stay tuned for more topics like this on Trace’s blog. Click here and access more content!
