Latin America tech hubs thrive despite recession
Latin America has established itself as a promising region for start-up activity and tech talent, with venture capital investment growing steadily over the past five years. $4.6bn was invested in Latin American tech in 2019, doubling annually since 2016.
The COVID-19 recession has impacted this flow of investment, but many of Latin America’s start-up communities have shown adaptability and resilience. Cities like São Paulo, Mexico City, and Santiago have thriving tech ecosystems.
Top Tech Hubs
São Paulo is often referred to as Brazil’s innovation powerhouse, with a dynamic tech community attracting VC funding from around the world. Over 60 percent of start-up investments in Brazil are concentrated in the city.
The city is home to a rich tech ecosystem, supporting many local ‘unicorns’ and boasting more fintech start-ups than any other Latin American city. Amazon, Uber, and Spotify have chosen São Paulo as their Latin American base.
Mexico City is fast establishing a reputation as one of Latin America’s most promising tech hubs, with a strategic location and a growing economy. Netflix has established a regional headquarters in the city, marking a vote of confidence in its thriving tech community.
Emerging Hubs
Santiago, the Chilean capital, has earned the nickname ‘Chilecon Valley’ due to its hotspot for entrepreneurial activity. The Chilean government launched the ‘Start-up Chile’ seed accelerator in 2010, providing equity-free investments for start-ups from around the globe.
The nation ranks as Latin America’s top country for entrepreneurship, according to the 2020 Global Entrepreneurship Index. Buenos Aires, the Argentine capital, is home to a technological ecosystem that is gaining a reputation as the region’s best performing tech incubator.
Mercado Libre, often called the Amazon of Latin America, is the city’s greatest success story. Buenos Aires is also establishing a name for itself as a regional blockchain hotspot, with the number of Argentinian blockchain and cryptocurrency companies rising by 10 percent in 2019.
Growing Ecosystems
Medellín, Colombia’s second-largest city, has seen its tech scene grow significantly in recent years. The city has been working to reinvent itself, with Huawei and Tuya Smart announcing plans to establish bases in Medellín’s Innovation District in 2019.
The Ruta N complex is a co-working space that supports innovation and collaboration between start-ups, with hopes to grow the entrepreneurial ecosystem within the city. The city’s efforts to transform its reputation and become a hub for innovation and technology have led to significant growth.
