São Paulo Joins the Global Tech Startup Revolution
Silicon Valley may be the world’s largest, best funded, and most influential location for high-growth technology startups, but the rest of the world is catching up. There are a growing number of “startup ecosystems” flourishing in Latin America, Europe, the Middle East, and Asia.
According to the 2012 Startup Ecosystem Report released by Telefonica Digital and the Startup Genome, countries across the globe are shifting from service-based economies to economies that are driven by a young generation of software and technology companies. There are new startup ecosystems springing up where technology entrepreneurship opportunities didn’t exist five or ten years ago.
São Paulo’s Tech Ecosystem Ranks 13th in the World
The Startup Ecosystem Report ranks São Paulo as the 13th most influential tech ecosystem in the world just behind Sydney and just before Moscow and Berlin. Rounding out the top 5 are Silicon Valley, Tel Aviv, Los Angeles, Seattle, and New York City.
The index is based on data collected from more than 50,000 startups around the world. It takes into consideration such factors as the total activity of entrepreneurship in the region, the availability of funding, how startups are performing, and how well the founders in the ecosystem “think like an entrepreneur.” These are all factors that have contributed to the success of the Silicon Valley ecosystem.
What Makes São Paulo a Great Startup Ecosystem
Despite its ups and downs, the Brazilian economy is growing. It’s expected that Brazil’s economic alliance with the BRICS economies of Russia, India, China, and South Africa will serve to strengthen its economic future.
The Startup Ecosystem Report lists the following positive attributes in its description of the São Paulo tech ecosystem:
- São Paulo entrepreneurs have an average age of 30.80, 3.32 years younger than their peers in Silicon Valley.
- São Paulo entrepreneurs are similarly educated as Silicon Valley entrepreneurs (40% Master and PhD vs 42% in Silicon Valley).
- São Paulo entrepreneurs tackle ‘new’ markets over ‘niche’ markets with equal proportion to Silicon Valley entrepreneurs.
- São Paulo entrepreneurs are more driven by creating a great product than making an impact.
- The São Paulo startup ecosystem has the same healthy mix of startups targeting consumers, enterprise, and small and medium-sized business customers as Silicon Valley.
- São Paulo entrepreneurs work 8.86 hours on average per day, 1.08 fewer hours than entrepreneurs in Silicon Valley.
- São Paulo startups outsource more crucial product development than their peers in Silicon Valley. Nearly 13% of product development is outsourced vs. 5.5% in Silicon Valley.
TechnoLatinas, as the South American tech entrepreneurs are now called, are attracting more attention and money than ever before. As the middle class continues to expand, market opportunities for tech entrepreneurs will multiply.