How Miami’s Tech Boom is Benefiting Latin-American Startups

By  //  March 10, 2022

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Miami has seen a massive boom in its technology sector since 2021. A series of viral tweets led to a significant shift away from traditional tech startup hubs in the USA such as San Francisco and New York. This was compounded by other factors such as Florida’s more relaxed covid protocols during a time when other states were imposing harsher lockdown measures to curb a rise in covid infections. 

Additionally, the weather of sunny Florida was appealing to many Americans during a cold winter elsewhere. However, one must also acknowledge the hard work of many entrepreneurs and business people as well as governmental figures who have been laying the groundwork for this boom for decades.

This work has slowly built Miami into a city capable of facilitating the intense demands of the tech startup space. 

A principal demand in this regard is a network of willing investors to provide the capital necessary to develop new startups. This is something which Miami is capable of providing as many venture capital firms including, but by no means limited to, Founders Fund and Palm Drive Capital have announced plans to open offices in Miami. 

The Diversity Factor

As of the 2020 Census, Miami has a population which is 69.4% Hispanic. This makes them a majority-minority population, which is a population that is a minority in a certain way but comprises the majority of the population in a specific area. Latin-Americans are therefore poised to be advantaged significantly by the tech boom in Miami. Latin-American startups can now access the tremendous amount of capital which is being funneled into startups in Miami. 

Tech startups in Miami have raised a reported $2.4 billion in the first three quarters of 2021, which is triple the amount raised in 2020. The upper echelons of the Miami tech scene include many Latin-American people and companies and these are some of the beneficiaries of the recent tech boom. 

Miami’s diverse population functions as a bridge for Latin-American startups wanting to break into the US market. Due to its largely Hispanic population, Miami is culturally more akin to Latin-American countries such as Brazil.

This allows Latin-American entrepreneurs to find their footing in the US more easily than they would be able to in traditional startup hotspots like Silicon Valley and New York. 

The US is the bridge which connects many other countries to the world, which is why it is so desirable to found startups there. Additionally, the ability to form connections with other entrepreneurs and financiers is essential to the success of a startup in the modern business climate.

This is something that Miami is able to provide to Latin-American entrepreneurs which other startup hubs are not. Silicon Valley and New York are more exclusive and as a result are more difficult to break into. Not being able to network effectively can spell the end of the road for a startup as finding funding and support are essential to the success of burgeoning businesses.  

The Benefits of an LLC

Many Latin-American startups, and startups in general, form an LLC. This is a limited liability Company, and it essentially protects the company’s owners from liability beyond the capacity of the company. For example, if the company were to go bankrupt the owners personal assets could not be used to pay back the debts incurred by the company. 

This has many obvious benefits particularly in a high risk space such as tech startups. Incorporation Guru has a helpful guide for setting up an LLC in Florida which includes all the steps required to take a business from concept to company. 

Final Thoughts 

Miami’s tech boom has facilitated a new wave of Latin-American startups by providing a bridge between Latin-America and the US. This bridge functions as a connection between Latin-America and the rest of the world. A global presence is essential to the success of startups due to the massive market share which this represents. In opposition to the exclusivity of other startup hubs, Miami is far more accessible.

This accessibility is extremely important to the success of startups as networking is so vital for a startup to find the capital they require to succeed.