15 SÃO PAULO

Brazil was once the darling of the emerging market, with investors clamoring for a spot in the economy, but it has quickly fallen from good graces. While the middle class is still expanding and the economy may still boom, the optimism in the country has fallen and political corruption is a serious problem. But despite all this, the tricky labor laws, and hefty taxes, the hype began for a reason. São Paulo and Brazil have never stopped growing, the startup infrastructure is worlds ahead of where it used to be, and no one can complain about the energetic Brazilian culture, the World Cup in 2014, and the Olympics in 2016. The potential in Brazil has yet to be tapped, as championed by the story of former soccer player turned media entrepreneur Rodrigo Barros and his mission to connect Brazilian entrepreneurs to the rest of the world.

VENTURE ACTIVITY Q4’15 - Q3’16

VC FUNDING: $1.1B

DEALS: 60

EXITS: 34

5 YEAR YoY FUNDING GROWTH: 119.0%

5 YEAR YoY DEAL GROWTH: 40.4

CB Insights

ANGELS

Aleksandr Dresen

Bedy Yang

Cassio Spina

Dave McClure

Eduardo Saverin

Flavio Jansen

Mario Ghio

Pierre Schurmann

Rodrigo Borges

Romero Rodrigues

Silvio Genesini

Steven Vachani

Sylvio de Barros

VCs

Astella

DGF

e.Bricks

Intel Capital

Kaszek Ventures

Performa

Qualcomm Ventures

Redpoint e.Ventures

Ribbit Capital

Riverwood Capital

Rocket International

SP Ventures

TOTVS Ventures

ACCELERATORS

500 Startups

Aceleratech

Cubo

Germinadora

Startup Farm

Wayra

ENTREPRENEURSHIP EVENTS

BR New Tech Meetups

Campus Party

Dojo SP

Silicon Drinkabout

Startup Sampa

Q4’15 - Q3’16 TOP FUNDING ROUNDS

Nubank—$56M

Movile—$40M

iFood—$30M

Adavium Medical—$21M

CargoX—$10M

EMERGING MARKETS VS. SILICON VALLEY

Outside of the obvious differences in capital and infrastructure, we take a closer look at the difference between emerging markets such as São Paulo and Silicon Valley.

ENGINEERS

The first complaint about emerging markets is usually the lack of talent. However, in these markets, engineers are not as valued as they are in the Valley, meaning attracting the best engineers is an easier task than outbidding Facebook, Google, and a host of startups. This culture of emerging markets in putting businessmen over engineers draws parallels to the culture of the Valley in the 1970s.

MOBILITY

In contrast to the American culture of moving around the country, citizens of emerging markets tend to have little geographic mobility. People tend to live and die in the same place, so in this respect, the talent isn’t as concentrated.

FAMILY

Citizens in emerging markets tend to have a more family-centric life—careers, therefore, are family decisions as opposed to individual ones. Because startups have yet to be recognized as a legitimate career path, family obligations can get in the way of an enterprising entrepreneur.

VENTURE CAPITALISTS

Entrepreneurs in the Valley can expect a specialized venture capitalist for any industry, whether it be cloud, big data, social media, whatever. The emerging market VC, on the other hand, needs to be a generalist, familiar with all industries. The scene is too immature in emerging markets for specialization to be practical.

GROWTH

In Silicon Valley, nearly all high-growth companies grow with technology. In emerging markets, labor-intensive companies can have this same kind of growth curve.

CONSUMERS

Consumers in emerging markets tend to be split firmly in terms of ethnicity, region, class, and language. While developed countries are by no means homogenous, differences in these qualities are more pronounced in emerging markets.

CARNIVAL DE RIO

Held before Lent since 1723, the Carnival de Rio is one of the craziest carnivals in the world.

ACCOMMODATION

Expect airline and hotels to be way overbooked and way overpriced. If you can’t book a spot with Airbnb, scouting out the best coworking places and living there for a week is always an option.

CLOTHES

Most men and women at the festival are scantily clad, especially the beautiful samba queens who lead the samba school drum sections. Drag is a perfectly normal way to go.

CULTURE

The carnival is the representation of excess, with bright colors, huge floats, and costumes everywhere. Every year the festival begins with the crowning of the Fat King, or King Momo, a tall fat man who is chosen to represent the King of Carnivals. Samba schools entertain the community with dance and music, representing a region or group of people.

Float seen during the Samba Parade at the 2007 carnival.

EDTech IN BRAZIL

Brazil’s education startups are booming.

Descomplica

Online tutoring program with a focus on university admissions

Funds Raised: $13.3M

Headquarters: Rio de Janeiro

eduK

Freemium education website with a focus on entrepreneurship

Funds Raised: $10M

Headquarters: São Paulo

Geekie

Creates tools for a more personalized learning approach for students

Funds Raised: $7M

Headquarters: São Paulo

veDuca

Online video platform with videos from universities across Brazil

Funds Raised: $1.3M

Headquarters: São Paulo

Edools

Provides e-learning systems for companies

Funds Raised: $80K

Headquarters: Rio de Janeiro

Passei Direto

Connects students with study materials and other students in Brazil

Funds Raised: undisclosed, in Series B

Headquarters: Rio de Janeiro

15

SÃO PAULO

VENTURE ACTIVITY Q4’15 - Q3’16

SÃO PAULO AT A GLANCE

Power Breakfast

Coffee Shops to Start Up In

Startup District

Best Bar

Local Beer

Go-to Drink

Offline Tinders

“Must Be At” Local Events

THE TOP

ANGELS

VCs

ACCELERATORS

ENTREPRENEURSHIP EVENTS

Q4’15 - Q3’16 TOP FUNDING ROUNDS

EMERGING MARKETS VS. SILICON VALLEY

TIP

CARNIVAL DE RIO

EDTech IN BRAZIL