Brazil is home to 24 out of 45 startup unicorns in Latin America, with notable companies like Nubank, iFood, and 99, according to a Distrito study.
Mexico and Argentina follow with seven unicorns each. Chile has three.
Investors poured $11.6 billion into these Brazilian firms from 2019 to 2023. This total doesn’t count IPOs or loans.
Latin America accounts for just 4% of global unicorns. Yet, the region’s startup activity started booming in 2018.
Brazil alone drew $22 billion through 3,471 investment rounds. Mexico secured much less, gathering only $5.3 billion.
The year 2021 stood out, with startups in Latin America receiving $17 billion. This boost came from a rush for digital services during the pandemic.
But 2023 saw a slump, with only $1.4 billion raised. This drop links to the fall of Silicon Valley Bank. This bank was known for funding startups.
The study also notes most unicorns in Latin America are fintechs. Digital banks and payment firms dominate this category.
Brazil Tech World
Brazil’s tech world has grown fast recently. The country benefits from a robust local market and international focus.
Low interest rates also help attract investments. The collapse of Silicon Valley Bank shows the ecosystem’s fragility.
Fintech is not just big in Brazil but a global trend. Brazil’s fintech scene is ahead of other Latin American countries.
The rise of fintech shows a broader change in how people handle money. Latin America is making its global mark in startups, but Brazil leads the way.
São Paulo
The startup culture in Brazil is relatively new. It gained momentum in the last decade. Technology hubs like São Paulo have attracted global attention.
The government is also promoting innovation through various schemes. Brazil’s economy has its ups and downs, but tech remains strong.
Foreign investors are showing a growing interest in Brazilian startups. Local investors are also becoming more active in the tech scene.