São Paulo creates tech startup fostering scheme

São Paulo creates tech startup fostering scheme

Summary: The initiative will include business acceleration and financial support.

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The city government of São Paulo has launched an initiative that will support the creation and development of new ventures in the technology sector in Brazil's largest urban center.

Launched on Friday, the Tech Sampa program wants to attract new ventures with high growth potential, provide a support framework for the various stages of development and connect the new companies with other tech startup excellence centers worldwide.

"Sometimes great ideas die out due to lack of support. We'll have a business cycle for companies that are starting and need government support," São Paulo city Mayor Fernando Haddad told delegates at a startup event where the Tech Sampa project was launched.

Ventures participating in the scheme, which is also backed by the Brazilian Bank for Economic and Social Development (BNDES), will go through three different stages. The first step will see selected startups receiving funding of R$25,000 ($11,170) and R$50,000 ($22,338) at a later date. At this stage, entrepreneurs can also apply for BNDES loans.

In the second part of the program, selected entrepreneurs — who should be managing incorporated companies in the city at this stage — will receive between R$50,000 and R$60,000, as well as mentoring and infrastructure to further accelerate their ideas. The third stage will see the city government's theme partnering with public and price organizations that can provide venture capital or private equity funding to the tech companies.

"São Paulo is in a privileged position, with the best higher education system in Brazil, a the center of business decisions in the country, a highly skilled workforce and an established center of excellence for information technology. We want to form a new business segment that can cross boundaries," said the president at the BNDES, Luciano Coutinho, at the launch event.

Details about the selection process and dates for Tech Sampa are yet to be announced.

Facebook concludes startup event

Also last Friday, social networking company Facebook has concluded its own startup event in São Paulo to promote its Preferred Marketing Developer program in Brazil.

The company picked nine out of 20 startups that had shown interest to be part of a week-long hackathon to compete for its three-month acceleration scheme.

Topics: Start-Ups, Government

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