Porto Alegre's old docks along the Guaíba river, once a gateway to the world a century ago, now host technology entrepreneurs at the South Summit conference. Since 2022, the sister event to Madrid's flagship gathering draws roughly 20,000 attendees over three days, including startup founders, investors and government representatives eager to showcase the city's growing tech ecosystem.

The capital of Rio Grande do Sul ranks as Brazil's fifth-largest innovation hub according to StartupBlink, trailing Rio de Janeiro, Curitiba and Belo Horizonte but ahead of Brasília and Campinas. Notable successes born in the city include digital brokerage XP, now one of Brazil's top financial institutions, payment platform Getnet (now a Santander subsidiary), and fintech PagBrasil, which serves clients including Samsung with 120 employees across Barcelona and São Paulo. About 30% of residents hold a bachelor's degree—nearly double the national rate.

State and municipal authorities have backed the sector with tax exemptions and schemes, including R$113mn invested by Rio Grande do Sul's Innovation, Science and Technology agency since 2019. The Caldeira Institute has supported 450 startups since launching in 2021. "It is impossible to compete with São Paulo, but I believe Porto Alegre has the conditions to take second place given its size, good education levels and an engaged private sector," says Marcelo Wolowski of Quartzo Capital, which has around R$600mn ($122mn) invested in startups. The city still faces challenges: some executives say it lacks visibility as a fintech hub and needs greater ambition.