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Investors Find Huge Promise in Brazil’s Start-Up Culture

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The Sao Paulo skyline (Oli Scarff/Getty Images)
The Sao Paulo skyline (Oli Scarff/Getty Images)

 

Despite Brazil’s economic ups and downs, could they still be a major player in the global economy? More than a few analysts say yes.

Even though political corruption and financial mismanagement have damaged Brazil’s economy over the country, the entrepreneurial culture in São Paulo (the country’s cultural and financial center) is still strong thanks to the presence of tech companies like Google and Uber. Brazilian accelerators, VC funds and angel networks backed as many as 195 startups in 2015. They have found traction despite a dense bureaucracy, antiquated tax codes, and crumbling infrastructure that would traditionally stifle entrepreneurship.

Workers discuss on a computer at Brazilian outsourcing company Ci&T in Campinas, about 100 km north from Sao Paulo, Brazil (YASUYOSHI CHIBA/AFP/GettyImages)
Workers discuss on a computer at Brazilian outsourcing company Ci&T in Campinas, about 100 km north from Sao Paulo, Brazil (YASUYOSHI CHIBA/AFP/GettyImages)

 

Further, Brazil is South America’s largest and most populated market, with Internet use that rivals the US. TechCrunch has more about what Brazil’s startup culture has accomplished, and the obstacles still in its way.