Top 15 Countries for Early-Stage Startups in South America in 2025
As the landscape of South American startups continues to evolve, various countries are emerging as key players in the early-stage investment arena. The following list details the Top 15 Countries for Early-Stage Startups in South America for 2025, showcasing their unique ecosystems, investment opportunities, and technological focuses.
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1. Brazil
Ecosystem Size: Brazil is recognized as the leading nation for startups in South America, home to 3% of all regional startups. The country boasts the largest number of software engineers in the region, contributing significantly to its expanding IT industry.
Investment: Approximately 47% of venture capital (VC) investment in South America flows into Brazil, with São Paulo leading the charge.
Key Hubs: São Paulo stands out as the foremost tech hub, excelling in sectors such as fintech, e-commerce, healthtech, and agritech, followed by Rio de Janeiro and Curitiba.
Startup Activity: São Paulo ranks as the top Latin American ecosystem in knowledge, funding, and talent.
Notable Startups: Home to successful unicorns like Nubank, iFood, and EBANX.
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2. Mexico
Ecosystem Size: Mexico City ranks as one of Latin America's premier tech hubs, supported by a developer community of over 700,000 IT professionals.
Investment: The country captured approximately 22% of VC investment in Latin America in 2023 and about 20% of total investment in South America in 2024.
Key Hubs: Mexico City and Guadalajara are major tech hubs, with Guadalajara noted for its top-tier technology-oriented universities.
Government Support: Initiatives like 500 Startups LatAm and Fondo Nacional Emprendedor enhance innovation and assist software engineers.
Notable Startups: Notable unicorns include Kavak and Bitso.
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3. Colombia
Ecosystem Size: Bogotá serves as a major tech hub, hosting many of Colombia's tech firms.
Investment: The nation saw the third highest amount of VC funding in Latin America in 2023.
Key Hubs: Bogotá and Medellín are the primary tech centers, with Medellín gaining traction as a technology hub focusing on foodtech.
Government Support: The Young Entrepreneurs Law provides significant incentives for tech businesses.
Notable Startups: Companies like Addi and Frubana, alongside the established Rappi delivery app, are noteworthy.
4. Chile
Ecosystem Size: Santiago is touted as a tech mecca in Latin America, primarily focused on Cloud and IoT technologies.
Investment: The country maintains a strong business atmosphere, attracting companies looking to optimize operating costs.
Key Hubs: Santiago serves as the centerpiece of its tech scene, renowned for its pro-investment economic policies.
Technology Focus: Leading the region in AI development, it boasts extensive 5G coverage and expanding cloud investments.
Talent Pool: Chilean coders possess notable tech skills and proficiency in English.
5. Argentina
Ecosystem Size: Buenos Aires is recognized as a prominent tech hub, distinguished by a skilled workforce and competitive operating costs.
Investment: Once a leader in VC investments, Argentina still attracts many innovative businesses despite a decline in funding shares.
Key Hubs: Buenos Aires is the principal tech hub.
Talent Pool: Argentinian IT professionals are well-regarded for their technical expertise and English fluency.
Notable Startups: Home to successful fintech startups like Ualá and Pomelo.
6. Peru
Ecosystem Size: As Lima emerges as a tech innovation hub, the country is experiencing growth, especially in e-commerce and fintech sectors.
Investment: Though still developing, venture capital interest is increasing, particularly in the growing tech ecosystem.
Key Hubs: Lima is currently the central hub for tech activity.
Technology Focus: E-commerce platforms and emerging fintech startups are paving the way for growth.
Talent Pool: The growing availability of tech-savvy professionals is contributing to the startup boom.
7. Uruguay
Ecosystem Size: Montevideo is rapidly developing its software and IT services market, becoming an attractive destination for startups.
Investment: Uruguay has seen an uptick in foreign investment, especially in tech-focused sectors.
Key Hubs: Montevideo is the leading city for startup activity in the nation.
Technology Focus: The country is positioning itself prominently in software development and IT services.
Talent Pool: A highly educated workforce reinforces Uruguay's tech capabilities.
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8. Guyana
Ecosystem Size: With its economy booming due to massive oil production, Guyana is witnessing rapid growth in its startup ecosystem.
Investment: The surge in oil revenues is attracting both local and foreign investments into various sectors, including tech.
Key Hubs: The new business climate is beginning to foster startup activity throughout the capital, Georgetown.
Technology Focus: Emerging sectors are capitalizing on increased economic activity and new opportunities.
Talent Pool: The evolving market is poised for innovation as new talent enters the industry.
9. El Salvador
Ecosystem Size: El Salvador is on the rise, benefiting from significant technological development and government initiatives.
Investment: The government's focus on attracting technology companies is fostering increased investment.
Key Hubs: San Salvador is becoming a central point for innovations in tech.
Technology Focus: Digital projects aimed at financial inclusion are prominent in the national agenda.
Government Support: Policies supporting the tech sector are boosting startup activity in the region.
10. Ecuador
Ecosystem Size: Quito is beginning to foster a startup ecosystem, particularly in tech-related ventures.
Investment: Investment is gradually increasing in response to governmental support for innovation.
Key Hubs: Quito is recognized as the main tech hub with potential for expansion.
Technology Focus: Emerging sectors include tourism tech and software development.
Talent Pool: Growing interest among youth in technology-related fields is enhancing the talent base.
11. Paraguay
Ecosystem Size: As its tech ecosystem grows, Asunción is the focal point of startup initiatives.
Investment: Foreign investment is slowly trickling into Paraguay's developing tech industries.
Key Hubs: Asunción's startups are focused on telecommunications and e-commerce.
Technology Focus: Paraguay is hoping to attract tech firms and capitalize on its resources.
Talent Pool: The country is working to strengthen its tech workforce through education initiatives.
12. Bolivia
Ecosystem Size: While still developing, Bolivia shows an increasing interest in tech startups, primarily in La Paz.
Investment: Investment remains limited but shows potential as the ecosystem begins to mature.
Key Hubs: La Paz is the primary city fostering tech entrepreneurship.
Technology Focus: Mobile applications and local service platforms are gaining traction.
Talent Pool: A young, enthusiastic workforce is emerging as a driving force for innovation.
13. Venezuela
Ecosystem Size: Despite economic challenges, there is a budding entrepreneurial spirit among the youth, primarily in Caracas.
Investment: Conditions are excellent for innovative solutions tailored to local needs, with limited but growing interest from investors.
Key Hubs: Caracas possesses potential for startups focused on sustainability and tech-driven solutions.
Technology Focus: Apps that address local issues are becoming increasingly popular.
Talent Pool: A growing number of skilled professionals are returning from abroad, eager to innovate.
14. French Guiana
Ecosystem Size: While part of France, French Guiana showcases a unique mix of cultural influences that are encouraging entrepreneurs to establish startups.
Investment: Investments primarily come from development agencies owing to its geographic position.
Key Hubs: Cayenne is beginning to attract tech innovators.
Technology Focus: Focus areas include tourism tech and ecological technology.
Talent Pool: Opportunities for local artisans and trained engineers drive innovation.
15. Suriname
Ecosystem Size: Suriname is slowly developing its tech landscape, focusing on eco-friendly initiatives.
Investment: Investments are minimal, but potential exists in sustainable practices.
Key Hubs: Paramaribo is the key city driving innovation.
Technology Focus: Sustainable agriculture and environmental tech are focal points.
Talent Pool: An interest in green technology marks the start of its entrepreneurial spirit.
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FAQ
Q: Which country leads in early-stage startup development in South America?
A: Brazil is the leading country for startups in South America, making up 3% of all regional startups and receiving approximately 47% of venture capital investment. Learn more about Brazil's startup ecosystem.
Q: What notable tech hubs exist in Brazil?
A: São Paulo is the largest tech hub, along with Rio de Janeiro and Curitiba, focusing on sectors like fintech, e-commerce, and healthtech. Explore more about Brazil's tech hubs.
Q: How does Mexico's startup ecosystem compare?
A: Mexico City is a premier tech hub with over 700,000 IT professionals, capturing roughly a fifth of total VC investment in South America. Discover Mexico's startup landscape.
Q: What government initiatives support startups in Colombia?
A: Colombia offers incentives like the Young Entrepreneurs Law to stimulate tech business growth, with Bogotá and Medellín as significant tech hubs. Learn more about Colombia's government support.
Q: What technology sectors is Chile known for?
A: Chile, particularly Santiago, is recognized for its focus on Cloud, IoT, and AI development, backed by strong 5G coverage. Explore Chile's tech focus.
Q: Which countries are emerging as startup hubs beyond the top five?
A: Countries like Peru, Uruguay, Guyana, and El Salvador are showing promise, with cities like Lima, Montevideo, and government initiatives fostering innovation. Learn more about emerging startup countries.
Q: What challenges does Argentina face in startup investments?
A: Although Argentina has a rich talent pool and successful startups, its share of VC investments has decreased, posing challenges for future growth. Understand Argentina's startup challenges.
Q: Why is Brazil considered a tech talent powerhouse?
A: Brazil boasts the most software engineers in South America, contributing to its position as a leading startup ecosystem. Read more about Brazil's talent pool.
Q: What is the significance of Ecuador in the South American startup scene?
A: Ecuador is gradually developing its startup ecosystem, focusing on digital innovations and seeking greater international support and investment. Discover more about Ecuador's startup scene.
Q: How do government programs impact Mexico's startup environment?
A: Mexican government initiatives like 500 Startups LatAm and Fondo Nacional Emprendedor actively promote innovation and support the burgeoning tech community. Explore Mexico's government initiatives.
About the Author
Violetta Bonenkamp, also known as MeanCEO, is an experienced startup founder with an impressive educational background including an MBA and four other higher education degrees. She has over 20 years of work experience across multiple countries, including 5 years as a solopreneur and serial entrepreneur.
Violetta is a true multiple specialist who has built expertise in Linguistics, Education, Business Management, Blockchain, Entrepreneurship, Intellectual Property, Game Design, AI, SEO, Digital Marketing, cyber security and zero code automations. Her extensive educational journey includes a Master of Arts in Linguistics and Education, an Advanced Master in Linguistics from Belgium (2006-2007), an MBA from Blekinge Institute of Technology in Sweden (2006-2008), and an Erasmus Mundus joint program European Master of Higher Education from universities in Norway, Finland, and Portugal (2009).
She is the founder of Fe/male Switch, a startup game that encourages women to enter STEM fields, and also leads CADChain, and multiple other projects like the Directory of 1,000 Startup Cities with a proprietary MeanCEO Index that ranks cities for female entrepreneurs. Violetta created the "gamepreneurship" methodology, which forms the scientific basis of her startup game. She also builds a lot of SEO tools for startups. Her achievements include being named one of the top 100 women in Europe by EU Startups in 2022 and being nominated for Impact Person of the year at the Dutch Blockchain Week. She is an author with Sifted and a speaker at different Universities. Recently she published a book on Startup Idea Validation the right way: from zero to first customers and beyond and launched a Directory of 1,500+ websites for startups to list themselves in order to gain traction and build backlinks.
