Highlights from the McKinsey Brazil Digital Report

The Brazilian economy is growing again, with Real GDP growth projected at 2.5% in 2019 and 2.7% in 2020. Interest and inflation rates, as well as country risk have created a favorable investment environment. 

More than 2/3 of Brazilians have smartphones and spend on average 9 hours connected to the Internet each day (vs. 6 hours in the US), one of the highest in the world.

Brazil has some of the most avid digital consumers globally. By number of users, Brazil ranks globally #2 for WhatsApp, #2 for Instagram, #3 for Facebook, #3 for LinkedIn, #2 for Pinterest, #1 for Waze. However, e-commerce is still lagging most developed nations with 6% of total retail sales (compared to 20% for China and 12% for the US).

Brazil's overall startup ecosystem is growing at an accelerated pace with over 10,000 startups — 46% of which are less than 2 years old — and 30,000 jobs. Venture capital investments in Brazil amounted to $1.3 billion in 2018 (vs. $859 million in 2017) and account for 66% of all investments in Latin America. As of 2018, there are 8 startups with $1+ billion unicorn status (compared to 13 in India and 92 in China). However, Brazil still ranks 109th in ease of doing business globally — for example, it takes 79 days on average to open a company (vs. half a day in the UK).

The Brazilian financial system has been prime territory for innovation. More than half of the population are active online banking users, and 58% of all banking transactions are online. There are over 400 fintech startups, and more than 7 million customers have opened accounts at digital-only banks. However, compared to developed countries, Brazil still has low penetration of nearly all financial products.

About Us

About Webrock VenturesWebrock is an investment company that generates shareholder value by creating joint ventures (JV’s) with Swedish-based technology companies to build and develop new, successful companies in Brazil. Using its understanding and experience of doing business in the country, Webrock provides a unique operational expertise that ensures its companies grow and prosper. Aware that Swedish companies have to think globally from the outset to be successful, Webrock believes that the Brazilian market provides a tremendous opportunity for Swedish companies looking to scale their businesses. As online business segments in Brazil often lag behind Sweden in development, companies with the right technology and experience will establish a critical head-start in the country’s rapidly growing digital industry. With proven business models serving as blueprints, the joint ventures benefit immediately from the Swedish JV-partner’s technology, know-how and experience, allowing Webrock to build companies at an accelerated pace and with less risk. For investors, this means investing in early-stage opportunity with late-stage risk.

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Quick facts

The Brazilian economy is growing again.
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More than 2/3 of Brazilians have smartphones.
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Brazil has some of the most avid digital consumers globally.
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Brazil's overall startup ecosystem is growing at an accelerated pace.
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The Brazilian financial system has been prime territory for innovation.
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