Member of the Week: MJV Technology and Innovation
September 25, 2020
What is the Impact of the U.S. Elections and Covid-19 on FinTech and on Trade Relations between Brazil and the U.S.?
February 18, 2021
When it comes to innovation in technology, does the country of Brazil come to mind? It should! The country is among world leaders in innovative uses of technology. Three sectors that stand out in particular with innovation are Education, Financial Services and Healthcare. Perhaps one of the more than 1,000 startups in these sectors could provide a profitable investment opportunity, as they do for many others.
Education Technology (EdTech)
EdTech has been very prominent during the pandemic. Driven by a need to bring education to Brazilians in remote regions of the country, it has proven extremely useful for continuing instruction in schools when regions of the country have been in quarantine, just like in many other parts of the world.
According to Crunchbase, there are 279 Brazilian companies involved in Educational Software. Two renowned American investors head the list of those funding these companies, namely 500 Startups of San Francisco and Accel of Palo Alto, both in California.
A prominent company in this space has been Carnegie Brasil, based in São Paulo. They provide English learning solutions using advanced technology and Artificial Intelligence to learners in schools, universities and companies. With over 1 million students worldwide, Carnegie brings an adaptive adaptive speech-focused platform that enables students to learn how to speak English fluently.
Financial Services Technology (FinTech)
Just like Atlanta, Georgia is at the center of the American financial services industry, with well-known industry leaders such as Equifax and Kabbage, several Brazilian cities have also fostered growth in this sector. These include São Paulo by far, but also Rio de Janeiro, Porto Alegre and Belo Horizonte. Sao Paulo is the 5th largest global hub for FinTech, per FinTech Magazine.
According to TheStreet.com, the FinTech category includes enterprises involved in:
- Crowdfunding
- Blockchain and cryptocurrency
- Mobile payment processing
- Insurance
- Stock trading and advice apps
- Budgeting apps
Well-known Brazilian companies in the sector include GuiaBolsa, NuBank and BankFacil.
Electronic Healthcare Technology (EHealth)
Another sector that has been essential during the pandemic is virtual healthcare delivery facilitated by the EHealth industry. Some services require you to be in the same room as your doctor, but there is an increasing number of services that can be delivered remotely.
As of a year ago, there were already close to 500 startups in this industry in Brazil, according to Tracxn. The types of things being accomplished by these companies in healthcare include apps for doctors to collaborate with specialists during an exam, video exams, electronic health records, online monitoring and reporting of physiological data, and many other capabilities.
These three industries are the tip of the iceberg for innovation in technology in this largest country in Latin America. There are similar developments in Artificial Intelligence, Machine Learning, Automotive, Aerospace, just to name a few. Learn more about what's happening there in this weekly summary from Forbes Magazine.
