Latin America is quickly becoming a prominent tech hub, despite the challenges posed by the COVID-19 recession. The region’s entrepreneurial start-up communities are demonstrating remarkable resilience in these testing times.

In recent years, Latin America has emerged as a promising region for start-up activity and tech talent. Venture capital investment in Latin American tech has been steadily growing, doubling annually since 2016 and reaching a record high of $4.6bn in 2019. Despite the impact of the COVID-19 recession, start-up communities in Latin America, such as those in Brazil and Mexico, have demonstrated adaptability and resilience.

Here are five of Latin America’s most exciting tech hubs.

1 – São Paulo

São Paulo is Brazil’s innovation powerhouse, attracting significant VC funding and accounting for over 60% of start-up investments in the country. The city’s tech ecosystem is robust, with numerous local ‘unicorns’ and the highest number of fintech start-ups in Latin America. Tech giants like Amazon, Uber, and Spotify have chosen São Paulo as their Latin American base. Despite the COVID-19 recession, the well-established technology sector in São Paulo has allowed many start-ups to not only survive but thrive.

2 – Mexico City
Mexico City, with its population of over 21 million people, is quickly becoming a prominent tech hub in Latin America. Investors see Mexico as a gateway to the rest of the region, as it offers Spanish-speaking access to growing economies. Additionally, Mexico City’s strategic location provides easy access to major US tech hubs like Los Angeles and Austin. This has attracted big-name companies like Netflix, who have established regional headquarters in the city, demonstrating their confidence in its thriving tech community.

3 – Santiago de Chile
Santiago, the capital of Chile, has earned the nickname ‘Chilecon Valley’ due to its status as a tech hub. Despite its remote location surrounded by the Andean mountains, the city has become a hotspot for entrepreneurial activity. In 2010, the Chilean government introduced the ‘Start-up Chile’ seed accelerator, which offers equity-free investments to start-ups from all over the world. This program has successfully supported over 1,500 start-ups from 80 different countries, making it a globally recognized initiative. What’s more, the nation ranks as Latin America’s top country for entrepreneurship, according to the 2020 edition of the Global Entrepreneurship Index, with a forward-thinking and adaptable tech community that will help to drive recovery in the aftermath of the Coronavirus crisis.

4 – Buenos Aires
Buenos Aires, the capital of Argentina, has become a thriving hub for start-ups in Latin America. Known for its vibrant technological ecosystem, the city has gained a reputation as the region’s top tech incubator. Mercado Libre, the e-commerce giant often referred to as the Amazon of Latin America, stands as the city’s greatest success story. However, Buenos Aires is also making a mark as a regional blockchain hotspot, witnessing a 10% increase in the number of Argentinian blockchain and cryptocurrency companies in 2019 alone.

5 – Medellín
Medellín, Colombia’s second-largest city, has experienced significant growth in its tech scene in recent years. The city has been dedicated to reinventing itself, shedding its previous reputation as “the world’s most dangerous city” according to Time magazine in 1988. Today, Medellín is known for being innovative, open, and dynamic.

In 2019, two of China’s largest tech companies, Huawei and Tuya Smart, announced their plans to establish bases in Medellín’s specially developed Innovation District. These companies will be located in the Ruta N complex, a co-working space designed to promote innovation and collaboration among start-ups, with the aim of fostering the city’s entrepreneurial ecosystem.