TechCrunch published an important and relevant article about the tech sector in Brazil, especially when considering the challenging political and economic times that Brazil is going through currently.
Some highlights of the article:
“The reality is that the recession and political crisis created a clear divergence of fortunes among Brazil’s technology companies. Many of the companies that presented at Founders Forum Brazil 2012 were plays on the emergence of Brazil’s middle class. The entrepreneurs and investors were wagering that these newly empowered consumers would snap up furniture, shoes and baby supplies at record rates. Unfortunately, an economy fueled by ever-looser credit and constantly increasing government spending could not last.”
“As in most countries, recessions lead to belt-tightening among companies and consumers. Just as expected, the technology companies that thrived are those that offer consumers and businesses a way to improve efficiency and sustainably reduce their costs.”
“No one knows the final outcome of Brazil’s political crisis — until now it has been an unpredictable cross of Gabriel Garcia Marquez’s surrealism and Netflix’s House of Cards. What we do know, however, is that efficiency-driving innovation will have its place, come whatever market environment. Those entrepreneurs and investors who can thrive in a tough macroeconomic scenario are surely well-positioned for long-term success in the world’s seventh-largest economy.”
To read the entire article, click here.
* And to read a related article, also written by TechCrunch, called, “As Brazilian Economy Descends Into Crisis, Tech Is Growing Double Digits,” click here.