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Entrepreneurs migrate to Floripa, coming from the biggest cities in Brazil

Published on May 1, 2024 by

Florianópolis has stood out as one of the main housing destinations for entrepreneurs in Brazil. The story of entrepreneurs in report published by fDi Intelligence magazine, part of the Financial Times group, presents the scenario of attracting business to the city in the south of the country. Entrepreneurs, authorities and agents from the Florianópolis innovation ecosystem present a scenario of opportunities and challenges

The decision to set up his company in Florianópolis by Pedro Marton Pereira, CEO of epHealth, opens the report. And it reports on the startup's connection with the local innovation ecosystem through ACATE. The business established in the capital of Santa Catarina developed with the graduation from MIDITEC incubator, achieved investments and approach to national customers.

The city's maturing tech scene has attracted a new wave of talent and entrepreneurs from across the country. In this way, this phenomenon is driven not only by the vibrant local technology community, but also by the unique lifestyle that the island offers.

Decisions made by many entrepreneurs that change lives

Pedro Marton Fereira made a life-changing decision in November 2015. He was about to launch a health technology startup in his hometown of São Paulo, Brazil's commercial capital, when he ran into Gabriel Sant'Ana, an old friend from his time studying at the Federal University of Santa Catarina (UFSC).

Sant'Ana, who is executive director of the Santa Catarina Technology Association (Acate), convinced Marton to establish his company in Florianópolis. It ended up being one of the best decisions Marton ever made. After moving to Floripa, Marton joined an incubator. As well, it raised capital from angel investors and developed relationships with Hospital Israelita Albert Einstein. As a result, today one of the largest in Latin America is now your client.

For years, students and entrepreneurs have been abandoning Brazil's polluted and unsafe megacities and moving to Floripa. The city is currently home to more than 500k people and is situated on a 53km long island, with lush tropical forests, hiking trails, lagoons and beaches popular with surfers.

The largest concentration of technology companies in Brazil is in Florianópolis

Although venture capital investment in Floripa is lower than in larger cities such as Rio de Janeiro and Curitiba. According to data from PitchBook, it stands out. An Acate survey in 2021 showed that the city has a greater concentration of technology companies. Being 7.4 per thousand inhabitants – than any other capital in the 26 states of Brazil.

A Growing Entrepreneurship Ecosystem

Florianópolis' technological ecosystem dates back to the 1960s, with the establishment of the Federal University of Santa Catarina and its laboratories and research groups. Since then, the city has witnessed the emergence of technology incubators. Like Celta, in 1986, followed by several technology parks and incubators spread across the city.

Tax Benefit: Greater Attraction of Talents and More Technology Companies

The Florianópolis city council's decision in 2003 to reduce the Service Tax (ISS) rate for technology companies from 5% to 2% was a crucial milestone in attracting technology companies to the city. This encouraged many technology companies to move to Florianópolis, coming from other cities, such as São Paulo, where the ISS rate is still 5%.

Collaboration between Public and Private Sector

One of Floripa's unique characteristics is the collaboration between the public and private sector to support entrepreneurs. This cooperation has been fundamental to the growth of the city's technological ecosystem, providing a conducive environment for new companies and innovative ideas to flourish.

Topázio Neto, mayor of Florianópolis, states that this initiative has enabled the technology industry to significantly improve the city's economy and the services sector. He says technology is the biggest contributor to local taxes, helping to raise the standard of living, promote real estate development and diversify the city away from seasonal tourism.

Several exits – when an entrepreneur sells their business in part or in whole – prove that their focus on technology is paying off. Big companies that have entered Floripa through acquisitions include e-commerce giant Mercado Livre and Brazilian software company Totvs, which in 2021 bought marketing startup RD Station for $370 million.

The possibility of living in a city closer to nature

Today, a network of innovation hubs, including Sapiens Park, home to major Brazilian companies like Softplan, attracts technology startups and talent to the city. As Floripa's tech ecosystem has matured, it has also attracted more experienced entrepreneurs, says Marcos Mueller, CEO of Darwin Startups, an accelerator and venture capital firm.

Among them is Raony Bourscheidt Rosseti, a former finance executive and CEO of Melver, a financial education startup he founded in 2021. "After years living in big cities like São Paulo and New York, my wife and I decided to move to a city closer to nature, reminiscent of our childhood," he says, adding that, as a kayaker, he was "captivated" by Lagoa da Conceição, a lagoon in the heart of the city.

Attracting Talents and Investments

The quality of life in Floripa, combined with the favorable business environment, has attracted not only local talent, but also investors and entrepreneurs from across Brazil and beyond. The city offers a unique blend of natural beauty, modern infrastructure and business opportunities that make it an attractive destination for those seeking success in the world of technology.

Cacupé: Entrepreneurs’ favorite neighborhood

Entrepreneurs choose Cacupé as a destination to live with their families, enjoying Florianópolis's lush nature. The neighborhood offers tranquility and safety, as well as stunning scenery. With comprehensive infrastructure, it's ideal for raising children in a healthy environment.

Cacupé offers a unique atmosphere for those seeking quality of life. With its paradisiacal beach and nature trails, it's a haven for nature lovers. Furthermore, its proximity to the city center facilitates access to essential services and amenities. It's also just 10 minutes away from Florianópolis' entire tech ecosystem.

The rising real estate value in Cacupé makes investing in the region even more attractive. With a welcoming community and diverse leisure options, it's the perfect place to build a home. In short, Cacupé is the ideal neighborhood for entrepreneurs seeking a balance between work, family, and nature.

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