When you think of the economic makeup of Latin America, what comes to mind? Maybe it’s the thriving Colombian produce food exports, Brazil’s massive automobile industry, or even the animal husbandry found in countries like Uruguay or Argentina.
But what about technology? How about startups? Believe it or not, Latin America is quickly becoming a global hub for those in the technology industry, especially startups. Whether it’s the mobile food ordering platform Rappi, digital banking company Nubank, or Brazilian-based iFood, Latin America is now also known as a forerunner in the startup space. But what exactly is making Latin America such a hub for startups?
There are many factors as to why Latin America is growing as a hub for technology startups, but below are just three reasons why Latin America is now one of the best tech startup hubs in the world.
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1. Early Adopters of Technology
Latin America’s residents have shown themselves very willing to try out or adopt new technology. This reigns particularly true for digital media, social media and the advertising areas. In fact, Latin American countries like Mexico and Argentina tend to prove themselves worthy of technological fame, consistently ranking in the top markets worldwide for total hours per week spent on the internet, especially on mobile phones.
In addition, these early adopters are also growing in number. If you’re looking to engage your startup with Latin American audiences, look no further. By mid-year 2020, American financial giant Visa stated well over 13 million Latin American residents made their first-ever purchase online.
2. Low Risk, Big Reward
Latin America is unique in that its digital media/advertising space is usually much more concentrated than elsewhere in the world. Whether it’s Televisa in Mexico or Clarín in Argentina, these channels hold much of the power and control. By partnering with one or two of these media giants, it allows early technology startups to establish their brand and build their audience and market in Latin America.
3. It’s Cheaper (for Most)
The less-developed financial ecosystem of Latin America is a great opportunity for technology startups to grow beyond their fullest potential. Particularly if you’re coming from first-world, hyper-developed nations like the United States, Canada, or much of Europe, Latin America might be one of the best options for you to get the best bang for your buck.
Take the California-based video startup Firework, for example. Tying in the “Low Risk, Big
Reward” point from above, Firework partnered with Brazil’s media giant Globo and within half a year, grew their user base fifty-fold. Today, its global outreach has expanded to well over 250 million users, now making Latin America one of Firework’s main focuses.
Much of this success came from the ability to financially establish themselves in Brazil due to the exchange rate between the U.S. and Brazil. It is much less costly to invest and develop a startup in Brazil and other Latin American countries like Firework did, setting your startup up for financial success.
So, if you are interested in finding out more about LATAM and its opportunities to develop business, contact us today! Below this article you will find a link to set up a free fifteen-minute consultation with us to discuss your options further.
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