A Changing Innovation Landscape

Northeast Brazil emerges as a new startup hub, marking a significant shift in the country’s innovation landscape. For the first time, the region has surpassed the South in the number of startups, becoming the country’s second-largest startup hub—just behind the Southeast. This shift is highlighted in the 2024 Startups Report by Sebrae (the Brazilian Micro and Small Business Support Service), a government-funded organization that supports entrepreneurship and innovation across Brazil. The report provides a detailed snapshot of the country’s startup landscape, revealing how new innovation centers are forming outside of the traditional Rio–São Paulo axis.

Northeast Leads a New Wave of Growth

Out of 18,056 startups identified by Sebrae’s Startup Observatory, the Southeast remains dominant with 36.15% of the total. However, the Northeast has surged ahead with 23.53%, surpassing the South, which now accounts for 21.06%. Other regions are also experiencing rapid growth: the Center-West saw a 189% increase in the number of startups in just one year, while the North doubled its share of Brazil’s innovation ecosystem.

A Structural Shift: Innovation as Regional Policy

These numbers indicate more than just growth—they signal a structural realignment. Innovation is becoming decentralized and is increasingly seen as a tool for regional development. According to Décio Lima, president of Sebrae, this trend is crucial for reducing inequality and boosting local solutions.

“We can no longer talk about development without including innovation, inclusion, and sustainability. As the Northeast grows, so does the possibility of a more balanced country,” he said.

Strategic Investment and Regional Initiatives

The Northeast’s progress is not a coincidence. Since 2022, targeted initiatives like StartupNE and Inova Biomas have focused on fostering innovation outside Brazil’s major urban centers. Events such as NordesteOn have also become key spaces to connect entrepreneurs, investors, and policymakers.
In 2025, the NEON (Northeast Innovation) conference aims to become a national innovation landmark, showcasing best practices and highlighting the rise of cities like Recife, Fortaleza, and Natal as startup hotspots.

A More Inclusive and Diverse Ecosystem

The evolution of Brazil’s innovation scene is not only geographic but also demographic. In 2024, 30.18% of startups have women among their founders, a dramatic rise from 8.65% in the previous year. This progress is credited to inclusive policies, mentorship networks, and training programs led by Sebrae.
There’s also greater diversity in business models: while B2B still leads (50.9%), B2B2C and B2C models are gaining ground. Startups are increasingly focused on IT, healthcare, and education, and are adopting advanced technologies like AI, Big Data, and Cloud Computing.

Rapid Expansion, But Maturity Still Developing

Despite encouraging growth, Brazil’s startup environment still faces significant challenges.

22% of startups are in the ideation phase.
33% are still validating their business models.
Only 3.72% have reached the scaling stage.

Most operate with small teams (up to three people), and 52% report no revenue, while only 1.53% exceed R$ 4.8 million annually.
Fábio Zanuzzi, technical director at Sebrae SC, notes that the priority is turning high-potential ideas into scalable businesses:

“We need to build an ecosystem that reduces bureaucracy, increases access to funding, and provides real connections that help these companies grow.”

Next Steps: Globalization and Continued Support

Sebrae is investing heavily to foster sustainable growth and global outreach. In 2024 alone, more than R$ 161 millionwere allocated to innovation. Programs like Catalisa ICT and Inova Amazônia mobilized over R$ 40 million to support bioeconomy and applied science projects.
Internationalization is also a key focus: participation in global events like the Web Summit in Lisbon has resulted in partnerships, investments, and even international branches for Brazilian startups.

A More Equitable Future for Innovation

Sebrae’s core message is clear: innovation should be inclusive and accessible to all, not just concentrated in established hubs. According to Bruno Quick, Sebrae’s national technical director, “Our main challenge is to ensure that innovation reaches small businesses, entrepreneurs in underserved areas, and young people from rural regions. Only then will technological transformation become a true driver for a more equitable Brazil.”

As Brazil’s innovation landscape continues to evolve, the Northeast stands at the forefront of this exciting transformation. With growing regional support, a more diverse entrepreneurial ecosystem, and the increasing internationalization of Brazilian startups, the future is bright for a more inclusive and dynamic innovation scene across the country. This shift is just the beginning, and it is clear that the Northeast will play a key role in shaping Brazil’s technological and entrepreneurial future.

Source: Agência Sebrae