{"id":2076,"date":"2015-02-13T01:17:04","date_gmt":"2015-02-12T17:17:04","guid":{"rendered":"http:\/\/www.www.innovationiseverywhere.com\/?p=2076"},"modified":"2015-02-13T01:17:04","modified_gmt":"2015-02-12T17:17:04","slug":"brazil-startup-scene","status":"publish","type":"post","link":"https:\/\/innovationiseverywhere.com\/fr\/brazil-startup-scene\/","title":{"rendered":"Brazil Startup Scene"},"content":{"rendered":"

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Brazil is certainly the most attractive market in Latin America. It is the 5th most populous country with over 200 millions inhabitants, and the impressive economic growth of the last decade has brought it up to the 7th rank of the world largest economies, tickling France and the UK. Beside, Brazil is not as poor as it used to be. Lula da Silva\u2019s redistribution policies have generated the rise of a giant middle class with higher purchase power and demanding for better services, now reaching about 100 millions individuals.<\/p>\n

Beyond these exciting numbers, further insights show tremendous opportunities for tech companies. Approximately half of the population goes on the web, and the internet penetration is still increasing. The Social Media audience is one of the largest and most active in the world, with 78.3 millions people spending 48% more time on Facebook than the average user. The Smartphone penetration is booming from 23% in 2013 to an expected-42% in 2017.<\/p>\n

Brazil startup scene is rising. It is a pool of entrepreneurs with over 300,000 companies created each year. It welcomes foreign investors, who will be allowed a permanent residence visa for \u201conly\u201d USD 60,000 in initial investment. Success stories in startup acquisition are among the most seducing ones of Latin America, like Buscap\u00e9 which sold 91% of its share for $342 millions<\/a> in 2009 (as a matter of comparison, the highest price reached in a startup acquisition in Chile is by far $40 millions). And it now has its own government supported accelerator: Start-Up Brasil<\/a>, though smaller and less famous than its chilean counterpart.<\/p>\n

Brazil startup scene is rising, yes, but slowly. As Ant\u00f4nio Luiz Seabra, founder at the cosmetic producer Natura, once said, \u201cThere is no need to innovate in Brazil<\/i>\u201d. The current trend is indeed to make acquisitions of copycats left, right and center. As many countries in Latin America, risk takers and visionnaires are very few. Businessmen prefer to bet safely on a valid clone of an american company. The obstacles for a company that dare to innovate too much will be numerous, from client skepticism to potential competitors that don\u2019t hesitate to suit to shut it down. No borderline company like Uber or AirBnB then, unless it merely confirms a global trend but in that case it will merely be a Brazilian copycat.<\/p>\n

What is more, Brazil is well known for its strongly bureaucratic system. It takes 84 days on average to create a company (Brazil ranks 10th worst in the world), and yet there could be many reason along the administrative process for officials to refuse creating the company, the first one being not complying with the important paperwork load. Tax are numerous, especially in case of international trade, and the tax law is quite instable.<\/p>\n

Brazil is one of the most difficult market to break into, regardless of its size. Even when a startup has made it through the administrative struggle, it still has to find good local representative, and skilled professionals are a rare ressource<\/a>, especially entrepreneurs and developers. But any startup, once it gets nationwide, almost automatically becomes a big number company.<\/p>\n

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PROS<\/strong><\/h3>\n