Brazil’s tech industry blossoms despite a long economic crisis

Brazil has a blossoming tech industry, most thought the crisis had all but broken it, however, it remains strong and may offer alternatives for development.

While Brazil sank into its greatest recession of the last century, recording near to no annual growth, its blossoming tech sector was constantly posting growth numbers in the double digits. In it, Brazil may find the key to spurring their economy back into action.

Venture capitalist Anderson Thees, from Redpoint eventures in Sao Paulo reported that ecommerce and web sectors had grown 20% while the country’s GDP had stayed flat.

Perhaps, this is the reason why investor trust in the Brazilian economy is picking up the pace. The IMF reports that in 2017 the country will once again record positive growth.

Well, this month, Bay Brazil, a non-profit based in Silicon Valley with the aim of promoting Brazilian-American economic integration, hosted its annual conference in September. Its main theme was “Navigating uncertainty: Meet Brazilians who are building solid businesses while riding the crisis.” In it, representatives from renowned tech companies such as Alibaba, Facebook and Uber, spoke unanimously about Brazil’s favorable climate for business in the tech sector.

The Bay Brazil conference shows the positive outlook private and venture capitalists see in Brazil, especially under interim president Michel Temer, who’s arrival signaled the beginning of the end for excessive government burden on private business. For many in the investment sector, his arrival was a game-changer for the Brazilian economy, and could only turn things around for the better.

Financing for Brazilian tech startups is now focused on two sectors: agro-tech and IoT (Internet of Things, or the integration of physical devices through network connectivity in order to exchange data. This sector includes technologies for education, finance and healthcare).

In the Agro-tech sector, Brazil can boast some impressive new companies that could revolutionize agricultural practices.

BovControl uses cloud technologies to improve data collection on meat and dairy farms, AgroSmart uses sensors and improve irrigation efficiency and make accurate climate predictions and Horus engineers drones for a variety of agricultural practices.

In the financial sector, Brazilian startups like BankFacil are looking towards building a more secure and amicable lending platform online in order to reduce lending rates. Services such as this one can provide a double benefit: on one hand the developers of the platform earn and contribute to the national economic growth, and on the other, individuals can participate more easily in entrepreneurial activities due to an easier access to capital.

Others, like Neon, are even more ambitious. Neon is a full-fledged bank, with which the users can interact with completely on their smartphones. The app makes use of biometric data to authenticate users, and through it all kinds of services can be accessed, from checking your account balance to withdrawing and transferring money.

Despite the gloom and doom stories that surround the Brazilian economy, the tech sector displays incredible dynamism. In it, investors might find the flame that weathered the storm, and that could mean that Brazilian tech is well on its way to compete with the best worldwide.

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