Is Brazil a Good Place to Launch a Startup?

Where you start your company still matters – but sticking too closely to one location might limit what you’re able to build. In today’s startup landscape, geography shapes your path – but it doesn’t have to define your potential.

Brazil has emerged as a strong hub for entrepreneurship, offering access to funding, talent, and infrastructure. But with growing competition, rigid local programmes, and support often reserved for the most polished startups, relying solely on what’s nearby can slow you down – or hold you back.

In this article, we’ll explore what Brazil gets right – and where founders often run into friction. We’ll also show how EWOR offers an alternative: a global, remote-first platform that gives you access to funding, mentorship, and community – no matter where you’re based.

1. Access to Funding in Brazil

Funding is one of the most critical ingredients in building a successful startup – and Brazil offers a growing ecosystem of support. From venture capital firms to government grants and angel investors, founders in this region have several pathways to raise capital and gain early traction.

Brazil's early-stage funding landscape is dynamic, attracting both local and international investors. Notable VC firms active in the early stages include Monashees, Canary, and SoftBank Latin America Fund. Government programs like Start-Up Brasil and InovAtiva Brasil also provide crucial support and funding for local founders. Angel networks such as Anjos do Brasil play a significant role in seed funding. Despite a vibrant ecosystem, challenges persist, including a complex regulatory environment and bureaucracy. While overall investment saw an uptick in 2024 compared to 2023, reaching $2.14 billion, funding levels remain below the peak seen in 2021-2022, indicating a more measured growth phase. Early-stage deals, particularly pre-seed and seed rounds, still dominate the landscape by volume, though seed funding specifically saw a sequential decline in Q1 2025 according to some data.

A More Flexible Path Forward

In the wake of these challenges, founders don’t have to rely solely on local funding options. EWOR offers a more flexible path – providing up to €500,000 in early-stage capital But EWOR is more than a cheque. Our capital comes bundled with personalised support, investor-ready storytelling, and access to a network of over 400 active European investors – many of whom regularly participate in our Grand Pitch events. On average, EWOR fellows who complete the programme and pitch go on to raise €2 million in follow-on funding – over 10x more than founders from comparable European initiatives.

2. Innovation and Startup Culture  

Brazil has become a centre of innovation, with numerous tech hubs, coworking spaces, and accelerators that foster creativity and new ideas. The local startup culture is vibrant, with a growing community of entrepreneurs working together to push the boundaries of what’s possible.

Brazil has a vibrant and growing startup ecosystem with a strong entrepreneurial culture. Coworking spaces are prevalent, particularly in major hubs like São Paulo, offering flexible workspaces and networking opportunities. Numerous tech events and conferences are held across the country, fostering connections and knowledge sharing. Brazil shows high rates of early-stage entrepreneurial activity. The ecosystem supports both early-stage and more mature startups through a mix of government initiatives, accelerators, and incubators, some specifically targeting early ideas or pre-seed companies, offering funding, mentorship, and resources. While standardized programs exist, there are also entities providing tailored support.

For many entrepreneurs, the energy and resources available in Brazil can provide the ideal environment to test new ideas and gain early traction. The collaborative atmosphere allows founders to connect with fellow innovators and build networks that can help their startups grow.

While the local startup culture is vibrant, the support founders actually receive can be hit or miss. VCs might offer funding but little time. Angel investors often give advice, but it’s scattered and inconsistent. What’s more, many accelerators rely on a one-size-fits-all model that doesn’t reflect the needs of exceptional founders. In fast-moving, competitive ecosystems like Brazil, standing out is hard enough – getting the right kind of support shouldn’t be.

The Alternative to Cookie-Cutter Programmes

Finding a programme that truly adapts to your journey, not the other way around, is rare. However, EWOR offers the kind of depth and flexibility that many local programmes simply can’t match. Instead of following a fixed curriculum, our fellowships are modular and tailored – giving you the right support at the right time, based on where you are in your journey.

But the real strength of EWOR goes beyond structure. Fellows often describe the community as the most unexpected – and valuable – part of the experience. As some have put it: “The real magic lies in the community: the kind of conversations, insights, and connections that lead not only to breakthroughs – but to lasting friendships with some of the most fascinating people they’ve ever met”.

3. Talent and Workforce Availability

One of the greatest assets of launching a startup in Brazil is access to a skilled and diverse talent pool. With universities producing top-tier graduates in technology, business, and other fields, startups can tap into a wealth of expertise to help grow their teams.

Brazil has a growing talent pool for startups, supported by numerous universities and technical institutions producing skilled professionals, particularly in tech fields like computer science and engineering. Cities like São Paulo and Belo Horizonte are major tech hubs with a significant number of tech talents and top educational institutions. Industry-specific skills in demand include AI, cloud computing, cybersecurity, Python, and JavaScript. Brazil is also noted for a large pool of software developers. Local talent supports entrepreneurial growth through a problem-solving outlook, adaptability, and a strong desire to innovate. The ecosystem is further bolstered by government initiatives, incubators, accelerators, and increasing venture capital investment. While challenges like talent shortages and bureaucracy exist, the overall trend indicates a dynamic and growing talent base for startups.

Like funding, competition for talent can be fierce, especially for highly specialised roles in fields like software development or AI. For startups looking to scale quickly, hiring the right people at the right time can be a challenge, leading some founders to look outside the region for remote talent solutions.

Get Global While Local

While hiring locally in Brazil can be competitive and slow, EWOR gives you instant access to a global network of exceptional talent. Built by founders for founders, the EWOR team has launched and exited companies worth over €12 billion – and they bring that experience directly into your venture. It's not just about funding or surface-level advice; it's akin to having a co-founder from day one. 

The team collaborates closely with you to refine your idea, challenge your thinking, and support you through real-world decisions – just like a hands-on partner would. Moreover, with EWOR’s exclusive co-founder pool, you can find the right person to build with, regardless of their location.

4. Infrastructure and Support Systems

Brazil boasts a strong infrastructure that supports the growth of new businesses. From modern office spaces to high-speed internet, entrepreneurs have access to everything they need to run their startups smoothly. Government policies may also provide tax breaks, legal support, and other incentives that make starting a business more attractive in this region.

Brazil offers a robust ecosystem for startups, featuring a growing network of incubators, accelerators, and co-working spaces, particularly in hubs like São Paulo. Support systems include increasing access to venture capital and angel investment, with both domestic and international firms actively participating. The government plays a significant role through initiatives like the Legal Framework for Startups, which simplifies regulations and offers tax incentives. Programs such as InovAtiva Brasil and StartOut Brasil provide funding, mentorship, and internationalization support. These resources help businesses thrive by providing necessary capital, guidance, and a more favorable legal and economic environment.

But what looks good on paper often proves more complicated in practice. Bureaucracy can be time-consuming and opaque, especially for first-time founders unfamiliar with local laws. Incorporation takes longer than expected. Accessing public funding often means navigating slow processes, strict requirements, or hard-to-reach advisors. And operational costs – from accounting to regulatory compliance – can quickly eat into early budgets. 

A System That Moves With You

With access to expert guidance, practical legal resources, and a network of experienced entrepreneurs who’ve built across a range of regulatory systems, EWOR is well positioned to help founders navigate the bureaucratic and legal complexities that often come with building in Brazil. Instead of wasting time figuring things out alone, you’ll have the tools and support to stay focused on what matters most – growing your venture.

And while we’re remote-first, our support is anything but distant. Through in-person gatherings like the EWOR House, city-based meetups, and our twice-yearly Grand Pitch event, you’ll still build meaningful relationships with investors, peers, and mentors. It’s a system that helps you focus on building – not just dealing with paperwork.

Can Brazil Be Considered the Best Place to Launch a Startup?

There’s no doubt that Brazil provides a vibrant environment for startups, with access to funding, innovation, talent, and infrastructure that can help entrepreneurs build successful businesses. For many, it’s a strong contender for the best place to launch a startup, thanks to its growing entrepreneurial ecosystem and support systems.

When launching a startup in Brazil, entrepreneurs often face significant challenges. Competition is fierce across various sectors, with both established local giants and international players vying for market share. This necessitates strong differentiation and aggressive market entry strategies. The cost of living in major cities like São Paulo and Rio de Janeiro can be high, impacting salary expectations for talent and increasing operational overhead. This, combined with a complex and often unpredictable tax system, contributes to a high cost of doing business. Regulatory issues are a major hurdle. Brazil's bureaucratic processes are notoriously cumbersome, involving extensive paperwork, slow approvals, and frequent changes in legislation. Navigating intricate labor laws, tax regulations, and business registration requirements can be a time-consuming and costly endeavor, often requiring specialized legal and accounting support.

However, it’s important to remember that the location of a startup is no longer the be-all and end-all. In today’s digital age, location-independent options like EWOR allow entrepreneurs to access world-class mentorship, funding, and resources from anywhere in the world. Whether you’re based in Brazil or elsewhere, EWOR’s remote programmes are designed to support founders no matter where they are located.

So, while Brazil offers significant advantages, it’s worth considering options like EWOR that enable you to launch and scale your startup with global support – whether you’re in the heart of a bustling startup hub or working from a quiet corner of the world.

Image credits: by Andreas Brücker on Unsplash