I agree with you that startups in Brazil should focus on the internal market first. But Rudi also has a point that for many of the startups here, very few look past Brazil's borders, loosing relevance and being exposed to external competitors once they consolidated their markets outside.

Brazil is rather expensive and an extremely bureaucratic place to start a company in, so there is less competition when starting up. That is the only advantage of starting a business here, so doing one but focusing on the outside market before you validate a business model isn't optimal, you would be better off starting in the US instead.