São Paulo's Tech Sector Booms to Nearly 400,000 Companies in 2026

São Paulo has witnessed remarkable expansion in its technology sector, with the number of technology companies reaching 393,100 in the first half of 2026. This represents a significant increase from 360,200 companies in the same period in 2025 and a sharp rise from 220,300 in 2015, according to recent data from the Prefeitura de São Paulo.

This growth is fueled by effective government measures aimed at fostering innovation and making the city a hub for tech businesses. Notably, laws 17.719/21 and 17.875/22 reduced the municipal service tax (ISS) on technology and digital services from 5% to 2%, making it more financially viable for companies to operate and expand.

In addition to tax incentives, the city's Empreenda Fácil platform has greatly streamlined business registration processes, cutting the average company opening time from 100 days to less than 50 hours. Such simplification has been pivotal in encouraging new ventures.

Programs supporting startups and entrepreneurs have also played a critical role. The VAI TEC initiative has supported 371 tech businesses, increasing funding for projects from R$ 25,000 to R$ 52,000. Meanwhile, the Sampa Games program has accelerated 86 gaming sector companies, with project funding also rising from R$ 39,600 to R$ 52,000.

The expansion is not confined to traditional business districts; neighborhoods like São Mateus have seen tech companies grow from 2,200 to 5,100. Furthermore, the TEIAs initiative has enhanced community engagement by providing free coworking spaces, which recorded 112,000 accesses and hosted 23,700 participants in activities throughout 2025.

Together, these measures underscore São Paulo’s commitment to fostering a robust, inclusive, and dynamic technology ecosystem that stimulates innovation and entrepreneurial growth across the city.