HomeNEWSBrazilian innovation ecosystem expands, but aims for growth

Brazilian innovation ecosystem expands, but aims for growth

The sector is experiencing a warming moment and points to the need for actions to strengthen the entrepreneurial culture in the country.

O innovation ecosystem Brazilians are experiencing a period of warming up, with the formation of talent within startups, responsible for creating new businesses that attract more and more investors. In the midst of this process, the sector identifies the need for actions that enable the expansion of this virtuous cycle, to strengthen the entrepreneurial culture in the country.

Between January and May 2021, the innovation sector reached the historical maximum of attracting investments of venture capital, aimed at companies still in the initial stage of development. In total, there were 207 contributions that accounted for US$ 2.35 billion, according to data from the “Inside Venture Capital” survey, carried out by the innovation platform Distrito. The value is almost triple the amount reached in the first quarter of 2020.

Still according to the study, fintechs — technology and innovation companies applied to financial services — are the ones that most attract the interest of investors. Next are proptechs, which operate in the real estate market; retailtechs, which offer retail solutions; edtechs, aimed at teaching and learning; and supplytechs, which develop technical solutions for the industrial market.

The national technology and innovation sector also shows promise in other areas. Therefore, the agents point out the importance of actions that allow expanding the growth experienced now, not only in numbers, but also for other segments in order to consolidate the ecosystem.

What this article covers:


The Ecosystem of Startups in Brazil study, carried out by the Inter-American Development Bank (IDB), identifies measures that can contribute to the strengthening and expansion of this entrepreneurship network. The recommendations range from the production of data on the sector and the empowerment of actors to regulatory modernization, including the promotion of investments.

Also according to the IDB, support for training talent, encouraging acceleration programs and connection strategies between companies in the market are other actions that can contribute to increasing the innovation ecosystem.

Germination phenomenon:

In the evaluation of Wylinka, a non-profit organization that mobilizes innovation ecosystems based on scientific knowledge, Brazil is experiencing an emergency process similar to that which occurred in Silicon Valley. Resources have been injected into startups that form talent capable of undertaking and creating new businesses, which receive investments from the companies where they were conceived. The urban mobility company 99 is pointed out as a “barn of new startups”.

The germination process brings positive impacts for the generation of jobs and income, the improvement of technological innovation managementthe institutional maturation of the sector and investments in education for the training of new talents.

Still according to Wylinka, there are actions that can contribute to increase germination, such as the creation of regions that concentrate startups and provide greater networking; holding hackathons to promote collaborative work between entrepreneurs and programmers; partnership agreements between companies and research centers; monitoring missions with the participation of representatives of startups, inventors and researchers; among other initiatives.

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