It was a week like no other in Santa Rita do Sapucaí, a town nestled in the mountains of Minas Gerais, Brazil. Home to about 40,000 people and the epicenter of the so-called Electronics Valley, the town just experienced its busiest period of the year as it became the stage for the HackTown technology and creativity festival.
Known for being home to the National Institute of Telecommunications (INATEL) and researchers focused on areas such as 6G connectivity, Santa Rita has become an annual destination for Brazilian tech enthusiasts and innovators. This is because HackTown, which concluded on Sunday (4), is now on the radar of a broader audience and major brands.
Now in its eighth year, the festival occupies the entire town—from bars and second-hand shops to squares, farms, and school classrooms—with debates, workshops, and experiences centered around technology and innovation. The latest edition attracted an audience of approximately 30,000 participants (including free activities in public spaces). According to local authorities, the festival boosted the economies of Santa Rita and surrounding municipalities by around 30 million reais ($5,3 million).
Often compared to global tech festivals like SXSW due to its blend of business and culture, HackTown stands out for being “an event made by Brazilians for Brazilians,” according to João Rubens Costa Fonseca, a co-founder of the festival alongside Marcos David and Carlos Henrique Vilela.
“We aim to provide a platform for discussing the biggest technology trends, but grounded in the realities of Brazil and Latin America with our local charm and way of doing things,” says Fonseca. “Also, we believe many of the solutions for humanity’s future can be found in places not traditionally seen as high-tech hubs, and our event reflects that ethos.”
Global intentions
As the festival approaches its tenth years Fonseca wants HackTown to be seen as an opportunity to showcase the potential of Latin America in areas such as technology, sustainability, and the environment. “We can play an important role in celebrating Latin American culture and presenting it to the world,” he notes.
While there is a desire to position the event more globally, Fonseca notes that there hasn’t yet been a specific effort in this direction. This year, the focus was on curating the Music Business track, bringing in DJs from Colombia to offer a more international perspective.
“Perhaps the most powerful way to attract an international audience may not be through bringing in international speakers, but rather by highlighting the unique local stories and perspectives that can be transformative for outsiders,” Fonseca says, pointing out that a workshop led by someone from a small town can often be more compelling than a well-known speaker from São Paulo.
“I think the main draw for foreigners is the opportunity to discover the transformative potential and innovative solutions happening in Latin America that can change the game for international businesses and perspectives,” the founder adds.
Interest from brands
Over 130 companies, including multinationals like Nestlé and Unilever, supported the festival, along with regional and local brands like Banco do Brasil, one of Brazil’s largest banks, and telecommunications giant Claro. Fonseca did not disclose specific sponsorship numbers.
“To make the event happen, I have to interact with everyone from the town priest to CEOs, so anything financially-related could impact negotiations with local stakeholders and partners,” he says. However, Fonseca notes that total sponsorship revenue in 2024 saw a 30-40% increase from the previous year.
HackTown’s founder highlights a significant increase in brand activations and experiences compared to previous years. “[Supporters] are recognizing HackTown as a space where key discussions and debates are happening, and they want to be part of that,” he says, citing the partnership with Nestlé as an example of a meaningful experience that goes beyond brand promotion, focusing on important discussions around regenerative agriculture.
“Given the format of the festival, it’s all about curation and quality over quantity—the goal is to create impactful reflections rather than just a lot of content,” Fonseca argues.
However, it’s not all a bed of roses: according to Fonseca, the event’s revenue model relies on both ticket sales and sponsorship, and the organizers have faced challenges in the past with significant drops in revenue from one year to the next. “We are now working on a strategy to stabilize this revenue stream and prevent drastic fluctuations,” he says.
Local impact
While the event generates a lot of business for Santa Rita and surrounding towns, HackTown is something some locals still frown upon: “Hordes of people invade the town, but only show up again a year later—it’s hard to figure out what is left for us residents after this event is over,” said a business owner who asked not to be named.
Regarding the local impact of HackTown, Fonseca acknowledges that there are still challenges in engaging the local population and ensuring they feel connected to the event. “The event was more nationally focused initially, but we are now working to strengthen the connection with the local community,” says Fonseca, citing initiatives such as offering discounted tickets for residents, teachers, and public sector workers of Santa Rita, as well as initiatives with local schools throughout the year.
“It’s not an easy task, it requires time and effort – and we are putting in both to ensure we impact the town beyond the event,” says Fonseca, commenting on the indirect impact HackTown has had on the local economy and ecosystem, such as developing the event production capabilities of local suppliers.
“For instance, there was only one events production company in the town until a couple of years ago, and they could only do weddings—we are building a range of skills here to develop a local workforce that can respond to the evolving needs of a major festival,” he says, adding that having a positive local influence will remain one of his main business priorities going forward. “Our ability to leave a lasting impact, both during and after the event, is a key priority for the future.”
