Jose Marín points out a few reasons why. He suggestes that it is not easy to raise funds for startups locally. Simply because the majority of business angels and large venture capital funds still learn about the market and that takes a lot of time. The second issue is the human capital. Brazilian government is investing in technical schools and universities, forced by the fact that qualified IT proffesionals are too expensive. The third problem identified by Jose Marín is the lack of “technology DNA”.
Marin says "We need more successful entrepreneurs and relevant exits to push investments in this space and educate investors from other sectors to follow them. It is very difficult to compete in innovation when investment in R&D is low. Brazil is a country of opportunities and there is a lot of work to do. But we need more time, education of local investors, successful exits, and support from the government to promote technology development." In Brazil, most investments come from the government so there is a clear defficiency of private investment in innovation.
(Source: TNW Magazine)