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Law makes city the capital of startups! With 50 THOUSAND direct and indirect jobs, the city officially makes Brazil have its own 'SILICON VALLEY'

Written by Alisson Ficher
Published 14/09/2024 às 17:28
The city is consolidating itself as the National Capital of Startups, attracting companies and investments, becoming the Brazilian Silicon Valley. (Image: Passo a Passo Empreendedor)
The city is consolidating itself as the National Capital of Startups, attracting companies and investments, becoming the Brazilian Silicon Valley. (Image: Passo a Passo Empreendedor)

The city is now officially the National Capital of Startups. With over 780 startups, the city generates thousands of jobs and attracts talent and companies. The technology ecosystem continues to grow, positioning the city as the “Brazilian Silicon Valley”.

Can you imagine a place in Brazil that rivals the famous Silicon Valley in the United States? Well, while many associate technological innovations Abroad, a Brazilian city is challenging this perception and gaining a place of global prominence.

A true startup hub that has been attracting talent and investment from all over the country and even the world. But how did this phenomenon begin? And why is this city being compared to one of the most innovative regions on the planet?

Officially, Brazil has its own Silicon Valley. The city of Florianópolis was recognized in 2024 as the National Capital of Startups, after the publication of Federal Law 14.955, sanctioned on September 2. This title granted to the capital of Santa Catarina marks an important point in the country's innovation and technology scenario.

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The exponential growth of calls startups, young companies that develop innovative and highly replicable business models, have transformed Florianópolis into a true epicenter of entrepreneurship.

According to Entrepreneurial Step by Step, Florianópolis is currently home to 676 startups, and that number rises to 782 if we consider the metropolitan region.

In total, these companies generate more than 50 thousand direct and indirect jobs, consolidating the municipality as a fertile environment for technology and innovation. With 7,4 startups for every 1000 inhabitants, the city stands out for the proportion of companies in relation to the population, a rate higher even than large centers such as São Paulo.

Factors behind success: a convergence between talent and innovation

To understand how Florianópolis reached the status of “Brazilian Silicon Valley”, it is essential to analyze a series of converging factors.

Historically, the city has a strong entrepreneurial culture, which was strengthened in the 80s and 90s with the creation of technology companies such as Digitro, softplan e intelbras.

These companies not only attracted skilled labor to the region, but also influenced the offering of courses at local universities, which began to prepare students to meet the growing demand for technology professionals.

According to the Step by Step Entrepreneur channel, institutions such as UFSC (Federal University of Santa Catarina), the UDESC (State University of Santa Catarina) and the IFSC (Federal Institute of Santa Catarina) play a crucial role in training talent.

These educational centers not only provide highly qualified labor, but also attract students from all over the country interested in studying areas such as engineering, computer science and information technology.

The importance of the public and private sector in the rise of Florianópolis

Another factor that contributed significantly to the development of the startup ecosystem was support from the public sector.

The Santa Catarina government, through initiatives such as the CCI (Santa Catarina Innovation Program) and the Badesc Innovates, offered tax incentives and special lines of credit to technology companies. These actions were essential to attract new ventures and enable startups to flourish.

But the role of the private sector was also fundamental. Large local corporations, such as RD Station, play a prominent role in fostering entrepreneurship. RD Station, for example, is responsible for one of the largest entrepreneurship events in Brazil, RD Summit.

In addition, traditional companies have begun to invest heavily in the development of new startups, offering not only financial capital, but also infrastructure, knowledge and a network of contacts. According to the channel Entrepreneurial Step by Step, this movement is similar to what occurred in the original Silicon Valley.

Quality of life attracts talent and companies

The lifestyle in Florianópolis is also one of the reasons that attracts professionals and companies. The city combines an excellent business environment with an enviable quality of life, and is known for its beautiful beaches, safety and a more affordable cost of living than major cities such as São Paulo and Rio de Janeiro.

Furthermore, the famous Innovation Route, highway SC-401, which was once known for connecting the city center to the beaches, has now become the connection point for the city's main startups. Large technology companies, such as Celta and Miditec, settled along this route, further boosting the region’s growth as an innovation hub.

Florianópolis: a reference in B2B technology

One of the points that makes Florianópolis a national highlight is the specialization of its startups. About 75% of local companies are focused on the model B2B (Business to Business), offering technological solutions to other companies.

A successful example is the Decora, which develops 3D furniture models for large companies and was sold by 100 million dollars in 2018 for the American Creative Drive, standing out as one of the largest transactions in the Brazilian startup market.

This culture of innovation and entrepreneurship has made Florianópolis a reference not only in Brazil, but also abroad, attracting more and more investors and talent to the region. The local technology sector has grown 7% in 2023, one of the highest rates in the country, second only to the state of Ceará.

The future of Brazilian Silicon Valley

With all these factors in play, Florianópolis is positioned to grow even more in the coming years. But the big question is: Will Brazil see the emergence of multi-billion dollar businesses, just like the original Silicon Valley? The answer may be closer than we think. After all, what does the future hold for “Silicon Island”?

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Alisson Ficher

Journalist graduated in 2017 and working in the field since 2015, with six years of experience in print magazines and over 12 thousand online publications. Specialist in politics, jobs, economics, courses, among other topics. If you have any questions, want to report an error or suggest a topic on the topics covered on the site, please contact us by email: alisson.hficher@outlook.com. We do not accept resumes!

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