Crossing Borders with Nathan Lustig: Recent Episodes
Nathan Lustig
Hello and welcome to Crossing Borders with Nathan Lustig, where I interview entrepreneurs doing startups across borders and the investors who support them, with a focus on companies that have some relationship to Latin America.
For this week on the Crossing Borders podcast, we’re revisiting one of our greatest hits episodes featuring Pedro Pablo del Campo, Partner of Magma Partners
Pedro Pablo del Campo is a Chilean entrepreneur and the newest addition to our Magma Partners team. Born in Punta Arenas, one of the most Southerly cities in the world, Pedro Pablo traveled the world in his youth since his father was in the Air Force and then a commercial pilot. From a young age, Pedro Pablo was eager to be involved in early-stage enterprises and has gone on to founding or join early teams of several startups and nonprofits bridging the US and Latin America. In 2016, he joined the Techstars team in Austin as the Business Development Director for Latin America, a position they created just for him.
Pedro Pablo has now brought his passion for supporting Latin American entrepreneurship to Magma, where he will be helping manage our portfolio and evaluating future investments for the fund. In this episode, we discuss Pedro’s non-traditional career path, his start in the nonprofit world, how a cold email got him connected to the Techstars network, and what he thinks of the maturing Latin American entrepreneurial ecosystem.
Never be afraid of relying on your network
Pedro Pablo used to think he knew everything about starting a business until he founded his first company after university. Soon, he realized he knew nothing and that he would have to surround himself with mentors and other successful entrepreneurs in order to succeed. That lesson carried him on to his time in the US when he realized that New York is a lonely place for an entrepreneur without a network.
Listen to this episode of Crossing Borders to find out how Pedro Pablo built a network from scratch in each of the cities he has lived in, from Santiago to New York, and finally in Austin. It’s all about adding value, says Pedro Pablo. When you have given someone a bit of value, they are often happy to help you when you need it.
The key to bootstrapping a business from Chile? Find the right partners
After coming back from New York, Pedro Pablo knew he wanted to find something for himself. He co-founded Visualogica, a design firm, with three co-founders; however, he quickly side-stepped to become CEO of a vending machine company, leaving his partners in charge. This opportunity allowed both businesses to be successful in the end, and the vending machine company was even acquired.
Learn more about Pedro Pablo’s experience building a company from the ground up and how he leads a team in this episode of Crossing Borders.
The art of the cold email
Pedro Pablo reached out to the Chief Investment Officer at Techstars in a cold email while caring for his son at home while his wife studied her PhD. He wanted to tell them about the value of connecting the Latin American and US ecosystems and hoped the global accelerator would pay attention. Using his contacts in Chile, Pedro Pablo provided a network for Techstars in Latin America and helped the accelerator expand, before they had even offered him a position. His advice to new founders: never be afraid of cold emailing people, no matter how high up they are.
Find out how Techstars invented a new position for Pedro Pablo so he could help them bring Latin America into one of the largest and strongest entrepreneurial networks in the world.
Pedro Pablo is passionate about the potential global impacts of the growing Latin American entrepreneurial ecosystem. He has lots of ideas about how to build the ecosystem, including partnerships with corporate partners in the US and LatAm that will allow for bigger acquisitions that could shape the industry. Listen to this episode to hear Pedro Pablo’s predictions for how entrepreneurs from Latin America could disrupt established markets in LatAm, the US, and beyond.
Outline of this episode
* [1:59] – Where are you working in Austin?
* [2:27] – Pedro Pablo’s childhood in Punta Arenas and Santiago
* [4:04] – Did traveling at a young age impact your perspective on the world?
* [6:32] – Studying business in Chile
* [7:07] – What was your first experience with an earlier-stage company?
* [9:35] – What were some of the biggest takeaways from your time at Late?
* [10:28] – What did you do after Late?
* [12:40] – Doing business in New York vs. Chile
* [15:11] – Why did you go back to Chile after New York and what did you end up doing there?
* [17:44] – Why “boring” businesses are a good investment
* [21:02] – How did you end up in Austin?
* [26:24] – How did you create your own role at Techstars?
* [31:42] – Biggest lessons from working at Techstars
* [35:50] – How to motivate corporations to pay attention to entrepreneurship without using fear
* [40:36] – On Falabella’s acquisition of Linio
* [43:54] – What are some of your favorite books, blogs, podcasts, or documentaries you would like to recommend?
* [46:30] – Pedro Pablo’s advice to his younger self
* [47:18] – What are you most excited about working on to help entrepreneurs in LatAm with Magma over the next 6-12 months?
Resources & People Mentioned
* Techstars accelerator
* Start-Up Chile
* Puro Chile – Chilean shop in New York
* Late
* Visualogica
* Never Split the Difference (BOOK) – Chris Voss
* Venture Deals (BOOK) – Brad Feld
* Startup Communities (BOOK) – Brad Feld
* Alex Iskold’s Blog
This episode is brought to you by ProColombia, the agency behind the many products and services of Colombian origin that share flavor, design, creativity, quality, and well-being with the world. Learn more about Colombia’s diverse offers by visiting https://b2bmarketplace.procolombia.co/
For this week on the Crossing Borders podcast, we’re revisiting one of our greatest hits episodes featuring Rebecca Fischer, cofounder and CEO of Divibank.
Before Divibank, small and medium enterprises in Brazil only had two financing options: getting debt from a bank or raising venture capital. But most startups don’t meet bank financing requirements, and not every company can raise VC or wants to raise VC.
Divibank provides a third alternative for startups and SMEs: revenue-based financing. Divibank launched in 2020 by financing digital marketing campaigns via a revenue share model. Since then, Divibank has launched other products including inventory financing and recurring revenue financing.
In this episode, I sat down with Rebecca Fischer, Divibank’s CPO and cofounder to talk about what she learned from working on digital marketing campaigns for huge brands, how she got Divibank off the ground, and how Divibank provides a better financing alternative for entrepreneurs in Brazil.
The overlooked potential of ad spend
Before starting Divibank, Rebecca worked for an advertising agency where she helped companies grow via paid digital ads. Clients invested huge amounts of money in their digital marketing campaigns, and the returns were great.
During her time running ad campaigns, Rebecca discovered two things that kickstarted the idea for Divibank: ad spend was a real asset class that could be an alternative to VC funding, and many people weren’t taking their ad spend as seriously as she thought it should be.
Listen to this episode to discover how Rebecca found an opportunity to provide financing for entrepreneurs to scale through digital marketing campaigns.
Non-dilutive capital to extend entrepreneurs’ runways
Divibank provides financing for founders who don't want to dilute themselves through venture capital and want access to capital to scale their businesses.
The startup’s clients are usually digitally native companies that know what their revenue will look like in the short term. They are looking for financing, but they are not ready yet to split the pie with many other shareholders. Divibank gives them the freedom to choose whether to raise VC money or keep growing with non-dilutive capital.
Check out this episode to find out how Divibank is helping founders in Brazil extend their runways and raise when they’re at a higher valuation. Outline of this episode:
* [01:10] - About Divibank
* [01:42] - What financing looks like for SMEs in Brazil
* [03:40] - Divibank’s average client
* [05:10] - Rebecca’s background
* [06:00] - Lessons learned from working in advertising agencies
* [08:08] - ABC of non-dilutive financing
* [11:30] - Divibank’s zero to one
* [12:58] - Divibank’s first steps
* [14:43] - Divibank’s experience with fundraising
* [16:30] - Where is Divibank today
* [17:49] - Rebecca’s book recommendations
* [19:21] - Rebecca’s advice to a younger self
* [20:10] - What’s next for Divibank
Resources and people mentioned:
* Rebecca Fischer
* Divibank
* Kenshoo
* Nubank
* Jaime Taboada
* Book Piranesi by Susanna Clarke
Podcast Fintech Leaders
For this week on the Crossing Borders podcast, we’re revisiting one of our greatest hits episodes featuring Luis Rubén Chávez, founder and CEO of Parco.
As an intern at a law firm, Juan hated parking in cash-only parking lots. After having to go to the ATM or getting countless parking tickets, he thought there had to be a better way. In 2016, Parco was born in Guadalajara, Mexico, and has since expanded into 28 cities across the country. Parco allows parking lot operators to install a software system to their existing parking systems for consumers to pay using a credit card via the Parco app. Users can also pay for parking tickets and get information about their driving history.
In this episode, we discuss how Parco is changing how the parking business operates and improving people’s lives across Latin America. We talk about his journey from working at a law firm to becoming a full-time tech entrepreneur and how the pandemic accelerated the company’s growth. From law firm employee to full-time entrepreneurJuan knew nothing about the tech business world when he started Parco, but he did know a problem when he saw one. Juan drove a car to run errands for his job at a law firm in Guadalajara, and parking was a nightmare because parking lots only accepted cash. After a few costly parking tickets, Juan pitched the Parco idea to his boss, who thought it was a great idea and said he was willing to invest.
In this episode of Crossing Borders, Juan talks us through his experience creating a company with zero experience to building a startup that plans to scale to multiple Latin American countries. Creating an easy and transparent way for people to pay for parking in Latin AmericaBefore Parco, parking meant long lines, carrying cash, or walking to an ATM to take out cash if you didn’t have any with you. Today, Parco allows people to pay for their parking via an app, which is 10x better than waiting in line or running back into a mall to search for an ATM.
Parco also generates user demographics and data for operators to understand how users behave and how often they park while providing transparency and safety.
Check out this episode of Crossing Borders to learn more about how Parco provides more revenue to parking operators and why they chose to be a software vendor instead of hardware. Scaling Parco in Mexico during the pandemicThe pandemic was a before and after for Parco. Before the pandemic, Parco had only launched in 8 cities. Since then, the Parco team launched 20 more cities remotely.
The pandemic not only accelerated the parking industry’s digitization but also changed the way Parco interacts with customers. The app quickly transitioned from an added value to a necessity.
In this episode, Juan shares with us how the pandemic became a milestone for Parco because of how they learned to scale and expand.
Outline of this episode:
* [01:20] - What problem does Parco solve?
* [05:08] - Juan’s background
* [07:15] - Creating a company with zero experience
* [09:45] - Parco’s geographic expansion
* [12:07] - Covid-19’s effect on Parco
* [15:26] - Choosing to be a software vendor
* [16:48] - Planning for a LatAm expansion
* [18:23] - Parco as an operating system
* [20:30] - Data analytics for operators
* [23:48] - Advice for a younger Juan
* [24:55] - Book recommendations
* [26:25] - Parco’s plans for the future
Resources & People mentioned:
* Juan José Leano
* Nathan Lustig
* Parco
* Books
+ The Almanack of Naval Ravikant: A Guide to Wealth and Happiness by Eric Jorgenson
+ How to make friends and influence people by Dale Carnegie
For this week on the Crossing Borders podcast, we’re revisiting one of our greatest hits episodes featuring Luis Rubén Chávez, founder and CEO of Zenfi.
Luis Rubén Chávez, co-founder and CEO of Zenfi, is changing the way people in Mexico think about financial health. Zenfi is a complete digital finance platform focused on lending that strives for the financial health of its customers. With more than 2.5 million users, the platform provides customers with tools to build a consistent long-term financial plan.
Zenfi offers an app that reviews clients’ credit bureaus for free. They provide personalized diagnostics, tips to improve the customer’s profile, and identity theft alerts. Also, Zenfi helps those who need a personal loan, debt consolidation, or car insurance by reviewing their information and recommending products according to their needs.
Before starting Zenfi, Luis Rubén worked in finance for eight years. He witnessed first-hand its inefficiencies, high concentration, and sometimes abusive practices that don’t help the user in the longer term. Banks offer 60+ products and services but execute poorly a large percentage of them, and fintechs are filling this gap in the market. With the new fintechs that are emerging, Luis Rubén thinks Mexico will have in 5 years a completely different financial system.
Listen to this episode to hear how Luis Rubén is raising awareness about the inefficient lending system in Mexico, what Zenfi is doing to provide a healthier alternative for people, and how the company is expanding its services by offering a marketplace of financial products.
Diversifying the financial system in Mexico
Banks own the credit bureau in Mexico, which reports only negative credit ratings of individuals. The five largest banks in Mexico hold 80-85% of the country’s consumer portfolio, and this high concentration means there is little to no competition. Many financial institutions have conflicts of interest and few incentives to build better data and technological products and services.
Mexicans perceive credit scores as a black box, filled with misconceptions that lead them to make adverse choices. Luis Rubén was part of the problem working within the financial system, but in this episode of Crossing Borders, he explains how he is now part of the solution.
Demystifying credit scores for Mexico’s population
Zenfi’s most attractive product is its free credit score check. The company analyzes the customer’s information and provides them with a complete and user-friendly diagnosis. Also, it gives useful and detailed information such as the impact that each variable has on the score, and parameters to understand your strengths and weaknesses to see what you have to improve. The company has nailed a feature that millions of Mexicans need in an inefficient system that has few incentives to help them maintain a good credit score.
Listen to this Crossing Borders episode to learn how Zenfi will continue to attract millions of users to its platform.
A marketplace for financial products
Users needed a bigger picture for making a long-term personal finance plan, so Zenfi started offering a marketplace where fintechs sell, for example, their mortgage, insurance, and credit card products. Zenfi’s marketplace shows the best financial products that its users can have access to. Zenfi’s lending criteria sometimes cannot give users a loan, so the company refers them to another fintech where they might have a product that serves them.
Check out this episode of Crossing Borders to understand how Zenfi is taking a hybrid approach by offering its products and a marketplace with the best fintechs in Mexico.
Outline of this episode:
* [01:09] - About Zenfi
* [02:10] - Zenfi’s credit scores
* [03:22] - Misconceptions and inefficiencies of the credit scoring system
* [05:20] - Zenfi in numbers
* [08:47] - Luis Rubén’s background
* [11:10] - Why is the traditional financial system stalled?
* [15:30] - Zenfi’s fintech marketplace
* [19:31] - The fintech ecosystem in Mexico in the last 5 years
* [25:10] - Reading recommendations
* [28:01] - Advice for a younger Luis Rubén
* [31:45] - The future of Zenfi
Resources & People mentioned:
* Luis Rubén Chávez
* Nathan Lustig
* Zenfi
* Book The Everything Store: Jeff Bezos and the Age of Amazon
* Blog by Paul Graham
This episode is brought to you by ProColombia, the agency behind the many products and services of Colombian origin that share flavor, design, creativity, quality, and well-being with the world.
Learn more about Colombia's diverse offers by visiting https://b2bmarketplace.procolombia.co/
Online payments in Latin America are rapidly growing, creating significant opportunities for businesses and consumers. In 2022, cash only represented 37% of all formal retail payments in LatAm's top six markets, marking a decline from pre-pandemic when cash represented around 70%.
Aron Schwarzkopf is cofounder and CEO of Kushki, a Latin American digital payments company. Magma invested in Kushki in 2018 to support its mission of providing the infrastructure to develop better payment products.
I sat down with Aron to discuss his journey as an entrepreneur and his experience in the payments industry. We also discuss the challenges of managing a multicultural company and Kushki's recent acquisition of Billpocket, a Mexican mobile payments company.
Getting Ph.D. in payments and startups
Aron started his entrepreneurial journey in college confounding Leaf, a payments company, alongside Sebastian Castro. After Leaf’s acquisition, Sebastian and Aron shifted their focus to investing in Latin America.
Despite receiving an offer to become an Entrepreneur in Residence (EIR) for a major company in New York, Aron declined the offer to focus on launching Kushki with Sebastian. Today, Kushki has a strong presence in Mexico, Colombia, Chile, Peru, Ecuador, and the US and has recently acquired Billpocket, a leading Mexican payments company.
Listen to this episode of Crossing Borders to learn more about Aron’s journey as an entrepreneur.
Building a multicultural team
After six years of operating in multiple countries, Kushki has built a multicultural team that encourages connections and transparency. The Kushki Nation has become a significant asset in driving the company's success, enabling them to foster a strong commitment towards their goals, despite the challenges of remote work.
Learn more about how Kushki leads a multicultural remote team in this episode of Crossing Borders.
Outline of this episode:
* [01:33] - About Kushki
* [02:04] - Payments in Latin America
* [07:11] - Ph.D. in payments
* [10:20] - Starting a company in Latin America instead of the US
* [12:41] - Building a multicultural company
* [16:11] - The aha! moment behind Kushki
* [19:57] - Investment in Latin America
* [22:17] - Kushki’s use cases and stories
* [24:35] - Billpocket’s acquisition
* [26:41] - Advice to Aron’s younger self
* [27:53] - Aron’s favorite podcasts and books
* [29:04] - What’s next for Kushki?
Resources & people mentioned:
* Aron Schwarzkopf
* Sebastián Castro Galnares
* Kushki
* Leaf
This episode was recorded on March 20, 2023
In the 90s, technology stock valuations soared rapidly in the US. Investors were pouring money into Internet-based companies, and the value of equity markets grew exponentially.
In 2000, things started to change. Between 2001 and 2002, the dotcom bubble burst, causing many tech companies to go bankrupt.
Monty Schmidt is a serial entrepreneur and CTO who co-founded Sonic Foundry, a music tools startup that grew to $50M+ in revenue. After taking it public at the peak of the tech bubble, Monty was worth $200M on paper, but when the bubble burst, his net worth plummeted to ~$0.
From hyper-growth to a market crash
Monty helped create some of the first audio software for Windows in the early-mid 90s, which eventually became Sonic Foundry.
Between 1995 and 1998, Sonic Foundry experienced hyper-growth and went public, raising ~$25M. By 2000, Sonic Foundry was valued at $1.2B, had an annual revenue of $30M, and about 400 employees.
After the market crash, they only had six months of runway. Monty and his team took a few weeks to strategize and then laid off half the company to extend runway. They then took on some high-interest debt and cut more employees, and were able to sell the media part of their business to Sony in early 2003.
Check out this episode of Crossing Borders to hear the story behind Sonic Foundry.
Surviving unexpected market downturns
Monty found himself in a tough spot where he had to make the difficult decision to lay off half of his employees. Despite his optimism, the market failed to improve, and Monty made further cuts.
After the deal with Sony, they had just 30 employees and $12M in the bank. However, thanks to their decisions, the company was able to continue operating to this day and employed hundreds of people over time.
Monty learned during this time the importance of having 18 months of runway to weather any unexpected market downturns. He also believes that a more conservative approach during tough times is vital to ensure a company's survival. These decisions are not easy, but they can ultimately make the difference between success and failure in the long run.
Check out this episode of Crossing Borders to learn more about Monty’s lessons learned during market downturns.
Outline of this episode:* [01:02] - About Monty * [08:04] - Growth after going public * [13:50] - The market crash * [15:37] - Market behavior during downturns * [20:33] - Closing a deal with Sony * [22:23] - Lessons learned * [24:30] - Going from 3 to 400 people * [28:06] - Advisors during the downturns * [31:08] - Recognizing bubbles * [37:12] - The drip of bad news * [42:13] - Surviving a market downturn * [37:12] - Lay-offs * [52:24] - Founders' most precious assets
Resources & people mentioned:* Monty Schmidt * Sonic Foundry
Mexico's metabolic health is alarming, with only one out of ten individuals falling in the “healthy” range and nearly 20% of Mexicans have diabetes. Lifestyles have drastically changed over the years, poor eating habits, little physical activity and rest have had a negative impact on people's health, causing an increase in chronic, cardiovascular, and neurological diseases.
After successfully starting multiple businesses, including one of Mexico’s largest fintechs, Cristina had a health scare and after getting better, decided to dedicate her life to helping other people improve their own health. Cristina Randall is the cofounder of Somos, a company that empowers Mexicans to take control of their health. Somos allows people to track how their habits affect their bodies to find the most efficient path to achieve their health goals. Their first product is a continuous glucose monitor that helps people see how what they eat and the exercise they do directly affects their health.
I sat down with Cristina to discuss her entrepreneurial background, the future of wearables in the health industry, and how having access to these devices allows people to make informed decisions about their health.
Transitioning from engineering to entrepreneurship
Cristina studied engineering at the University of Waterloo in Canada and then joined a student program where she got to work in IT consulting in India, investment banking in Japan, and international development in Southern Africa.
While working in Africa supporting local businesses for a program called Engineers Without Borders, Cristina saw the value of building businesses and decided to delve into the startup world once she returned to Canada.
Check out this episode of Crossing Borders to learn more about Cristina’s entrepreneurial journey.
Building a tool to understand the body
Cristina’s entrepreneurial journey in Mexico began a decade ago when she co-founded Conekta, a platform for online payments. Years later, after being diagnosed with Lyme disease, she experienced first-hand the limitations of the healthcare system, spurring her to start Somos to give people the power to control and prevent chronic diseases.
Somos became the assistant that Cristina wished she had when she got sick. Somos empowers people to understand the collective influence of their health markers, habits, and environment on their overall health.
Check out this episode of Crossing Borders to hear the story behind Somos.
Outline of this episode:
* [01:26] - About Somos
* [02:03] - Healthcare in Mexico
* [05:25] - From engineering to building a fintech company
* [08:31] - Funding a fintech company in Mexico
* [09:14] - Biggest lessons learned building Conekta
* [11:42] - Cristina’s jump into healthtech
* [14:50] - Somos: A tool to understand your body
* [18:07] - What’s next for Somos?
* [21:44] - Advice to Cristina’s younger self
* [24:32] - Cristina’s books and podcasts recommendations
Resources & people mentioned:
* Cristina Randall
* Somos
* Conekta
* Glucose Revolution
* Hacking Lyme Disease: A Practical Guide for Reclaiming Your Health
* Como Somos
Generative AI is becoming a game changer for creative industries by boosting content creation with more efficient and cost-effective processes.
Alejandro Matamala is the cofounder and CDO of Runway, a pioneering company that develops AI-powered tools designed to improve creative workflows.
I sat down with Alejandro to talk about AI's progress and how Runway is building the future of AI tools for creative industries. Runway isn’t Alejandro’s first company. He’s been an entrepreneur since his university days, starting a creative agency, a dental marketplace, and an Etsy-like platform for Chile.
From digital agency to building AI tools for creativesAlejandro's entrepreneurial journey began when he was young. Pursuing his creative interests, Alejandro studied communication at university and opened a design studio in Chile. His passion for business and creativity continued and led him to cofound Vitrin, Deenty, and Runway.
Listen to this episode of Crossing Borders to learn more about Alejandro's entrepreneurial background.
Jumping from a master’s thesis to building a successful AI company
During his master's program at NYU, Alejandro met fellow Chilean Cristóbal Valenzuela, Runway's cofounder, who built the first version of Runway as his thesis project.
Upon graduating, NYU offered them a research residency where they met Anastasis Germanidis, who joined Runway as a cofounder. One prototype and a tweet generated interest from users and set the tone for building the successful company that Runway is today.
Check out this episode of Crossing Borders to hear the full story behind Runway's cofounders' journey.
Generative AI’s breakthroughIn the last few years, we have witnessed the power of generative AI, but this tech is not new. In the last year, Runway has increased its offering of AI tools from three to more than thirty, a growth that comes from 5 years of work and research.
Today Runway's tools produce high-quality media outputs and have been used in films such as the award-winning Everything Everywhere All at Once.
Listen to Alejandro’s perspective on the future of generative AI in this episode of Crossing Borders.
Outline of this episode:
* [01:44] - About Runway
* [03:57] - Runway's tools
* [05:49] - From founding a design studio to creating AI-Powered tools
* [07:31] - Having a business while studying at college
* [09:14] - About Deenty
* [12:30] - Lessons learned from building three different companies
* [13:54] - Jumping to the US
* [18:07] - The breakthrough of generative AI
* [20:30] - The fundraising process through the years
* [22:50] - The future of generative AI tools
* [26:28] - Alejandro’s documentary recommendation
* [27:24] - Advice to Alejandro’s younger self
* [35:23] - What’s next for Runway?
Resources & people mentioned:
* Alejandro Matamala
* Cristóbal Valenzuela
* Anastasis Germanidis
* Runway
* Runway: Gen-1
* Deenty
For this week on the Crossing Borders podcast, we’re revisiting one of our greatest hits episodes featuring Dan Green, Partner at Gunderson Dettmer.
An avid traveler from a young age, Dan Green’s relationship with Latin America stretches all the way back to his childhood trips to Mexico and Ecuador and visits from an aunt who dazzled him with stories about doing business in Chile. Driven by his passion for the region, Dan was set on becoming a link between the US and Latin American markets.
In 2004, Dan started practicing law in Silicon Valley, immersing himself in the venture capital and startup world. Today, Dan is a corporate partner at Gunderson Dettmer, a law firm that focuses on global venture capital and emerging technology and has been practicing in and around Latin America for over 15 years.
I sat down with Dan to talk about how his trip to Latin America during his 20s inspired him to focus on building a bridge between Silicon Valley and the region, supporting top-level entrepreneurs like the current founders of Cornershop. We also discuss the advantages and disadvantages of different corporate structures for entrepreneurs starting their own business.
The mirror image of California through an atlas
Growing up in California, Dan’s aunt had told him stories about Chile from her ventures selling sonar fishing equipment to fishermen around the world. His aunt’s stories had intrigued him enough to choose Chile in his third year of undergrad at Stanford to complete a study abroad program. There, he fell in love with his future wife as well as with the country, the culture, and the people of Latin America.
Listen to this episode of Crossing Borders to learn more about how this chapter in his life inspired him to follow a career that would allow him to continue connecting with Latin America.
‘The Valley’ awakening to Latin America
Over the years, Dan has witnessed how the Latin American tech landscape has transformed. From broadband connection to access to mobile phones and a rising trust in eCommerce. The first investments, which are always the hardest when breaking into a market, took place in Brazil. According to Dan, these investments in Brazil unlocked the rest of the region for foreign investment.
Check out this episode of Crossing Borders to learn about the first investments that paved the way for other investors in the Valley.
An emerging standard in legal structures for business in Latam
One of the most important steps in starting a business is deciding on a legal structure. According to Dan, if done correctly this decision can save millions of dollars in terms of taxes and costs down the road. However, the answer is not always clear. This is especially true in the initial stages of a business when there is still so much uncertainty revolving around questions like how much you are going to raise or what your operating or exit path is. Dan explains that the more clarity you have about these questions, the more guidance you will be able to receive.
Learn about the advantages and disadvantages of different legal structures in this episode of Crossing Borders.
Dan Green is helping high impact businesses grow in Latin America and the US, leveraging his legal expertise and connections in Silicon Valley to become a bridge builder for the best entrepreneurs and investors in both regions.
Outline of this episode:
* [1:32] - About Gunderson Dettmer
* [2:16] - From Silicon Valley to Latam
* [6:59] - Changes in the ecosystem
* [11:08] - What corporate structure should you have?
* [19:19] - What you need to know about Delaware Corporations
* [22:16] - Setting up in Cayman
Resources & people mentioned:
* Dan Green
* Gunderson Dettmer
* Needish
* ClanDescuento
* Peixe Urbano
* Santi Subotovsky
* Rodolfo Gonzalez
* Kaszek Ventures
* Monashees
For this week on the Crossing Borders podcast, we’re revisiting one of our greatest hits episodes featuring Doménica Obando, CEO, and co-founder of Talently
Doménica Obando, CEO and co-founder of Talently, is helping build Latin America into the next tech talent hub while offering better jobs to skilled developers and data scientists.
Originally from Peru, Domenica worked in an NGO and the public sector before becoming a full-time entrepreneur. First, she founded Andi, a learning platform, which afterward she decided to pivot into Talently.
Talently is a talent accelerator for tech professionals in Latin America. Software developers and data scientists who feel stuck in their careers apply to Talently to upgrade their skills and land better jobs in return.
Talently diagnoses the skills tech professionals need to improve their careers and also provides courses to develop soft skills such as employability, interview prep, and more. The company has a heavy focus on improving their English fluency, which is a limiting factor that prevents their career growth.
So far, Talently has helped 800 engineers land better jobs at companies such as Paypal, Nubank, and Mercado Libre. And this year, the startup is set to help 4,000-5,000 professionals. According to Doménica, Talently is looking forward to becoming Latin America’s largest talent marketplace.
In this episode, I sat down with Doménica to talk about the experiences that helped her become the entrepreneur she is today. She shares how families in Latin America can improve their economy with education, and her experience pivoting her startup.
Doménica’s path across private, nonprofit, and public sectors
Doménica fell in love with startups while in university but took a different path. She worked at the Ministry of Education and then joined a friend to start an educational-focused NGO. She spent three years leading a team of 50 volunteers, as they taught digital skills to school teachers. Doménica decided to move on after realizing that working in the public sector and in an NGO didn’t fit her fast-paced personality and hunger for impact.
Learn more about why Doménica chose to become an entrepreneur in the Edtech industry in this Crossing Borders episode.
A startup as a vehicle to deliver outsized impact
Andi, an English learning platform, was Doménica’s first startup. However, when she found that most of Andi’s customers were trying to improve their English in order to get international positions and that half of them were software developers, she decided Andi would pivot into Talently, a platform that could take advantage of the tech boom in Latin America. In just 8 hours after launch, Talently received 100 applications.
Listen to this Crossing Borders episode to understand how Doménica’s primary goal was to build a product that created the most impact.
Developing skills in tech professionals to upgrade their reality
Talently’s participants finish the program earning 2X more on average than before. In many cases, they end up multiplying their earnings up to 10x. This increase in their income causes a huge impact on families and communities of Talently’s graduates. Sometimes, they earn more money than all of their family combined. Before, Doménica felt that her lack of English proficiency prevented her from achieving professional success. Once she mastered the English language, she found the drive to advance her career as she had always wanted.
Check out this episode of Crossing Borders and learn why Doménica thinks it is essential to build tools for tech professionals to become confident about their careers, so they can change their lives.
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Outline of this episode:
[01:30] - About Talently .
[01:54] - Talently’s value proposition.
[03:27] - Improving the income of tech professionals.
[05:40] - Latin America as a tech talent hub.
[06:41] - Doménica’s background.
[09:53] - The importance of English proficiency.
[11:37] - Pros and cons of working in the public, private and nonprofit sectors.
[15:00] - Lessons learned from past working experiences.
[16:40] - The path to product-market fit.
[19:14] - Pivoting, from Andi to Talently.
[21:27] - A multi-country startup.
[24:32] - Talently’s impact in Latam.
[26:25] - Advice for her younger self.
[27:10] - Doménica’s book recommendations.
[27:45] - What’s next for Talently?
Resources & people mentioned:
Doménica Obando
Talently
Andi
Daniel Undurraga
Cornershop
StartSchool Perú
Edtech program: Israel’s Agency for International Development Cooperation at MFA
Nathan Lustig
Wayra Accelerator
Book The Great CEO Within by Matt Mochary
For this week on the Crossing Borders podcast, we’re revisiting one of our greatest hits episodes featuring Pedro Moura, Co-Founder, and CEO of Flourish Fi. We hope you enjoy this conversation as much as we did
Pedro Moura moved from Natal, Brazil to the US at a young age, overcoming many challenges while always trying to build a better future for himself, his family and his region. His perseverance and grit guided him to create a company that he is truly passionate about. In this episode of Crossing Borders, Pedro tells the story of his career path and how taking a risk on what he really believed in led him to found Flourish, a B2B SaaS company that empowers people to establish positive money habits.
In this episode, I sat down with Pedro to discuss how he landed on the idea for Flourish, what companies can do to attract foreign talent, and how to think of a business from a global perspective.
Finding a fit in financial inclusion
Pedro’s story is truly inspirational. He moved to Northern California from Brazil when he was young, and his mother worked tirelessly for the family. Pedro attended UC Davis, studying Economics and International Relations, then venturing into Wealth Management at Morgan Stanley. However, he soon realized the position was not the best fit for him. After joining Opportun, a startup dedicated to making financial services more accessible, Pedro realized his passion for financial inclusion and decided to start Flourish.
Listen to this episode of Crossing Borders to learn more about Pedro’s career path and what led him to Flourish.
Attracting talent overseas
A key part of Pedro’s story was his decision to ‘cross a border’ to build something great. With talent today more mobile than ever before, some countries are still more hesitant than others to recruit from out-of-country. Despite political immigration boundaries, the culture of international collaboration is healthy and thriving.
Find out more about the opportunities that lie in hiring across borders in this episode of Crossing Borders.
Chasing your passion
While Pedro was still working at the bank, he saw a TV program that inspired him to learn more about companies that were driven by social issues: specifically, the disparity between the Latin American community and the world of financial services spoke to him. This experience sparked Pedro’s curiosity and led him to Opportun and then to founding Flourish.
Learn more about how Pedro discovered his passion in this episode of Crossing Borders.
Pedro Moura’s story is inspiring in more ways than one. Adapting to a new environment at a young age and thriving required perseverance and hard work. By following his passion, he took several career risks to serve the Latin American community. Join us to learn his story and what he is building at Flourish.
Outline of this episode:
[1:90] – About Flourish
[3:35] – Pedro’s move to the US
[7:00] – Adapting to a new culture at a young age
[8:30] – Advice on attracting talent
[12:30] – From wealth management to Oportun
[16:30] – Why starting a company was the natural next step
[18:30] – How geography plays a part in the business
[22:10] – What is Flourish’s next step
[23:20] – What advice would you offer your younger self?
[25:30] – Where do you see Flourish 2 years from now?
Resources & people mentioned:
Pedro Moura
Flourish
Book: The Brain That Changes Itself
For this week on the Crossing Borders podcast, we’re revisiting one of our greatest hits episodes featuring Maricel Saenz, Founder, and CEO of Compound Foods.
People continue to experience how global warming can have devastating effects on the world. Crop yields have already started to decline from rising temperatures, changes in rainfall patterns and extreme weather events. Climate change is threatening the future of many foods, and that includes coffee. This threat and her love for coffee inspired Maricel Saenz to launch Compound Foods, a food science company to reinvent coffee.
Originally from Costa Rica, where coffee is ingrained in the national identity, Maricel wanted to dedicate her time and energy to creating solutions fighting climate change. Maricel left her first startup to create a product that could recreate coffee in a sustainable way. Coffee is one of the most consumed products in the world and it comes with a large water footprint. Maricel’s idea for Compound Foods is to replicate the coffee experience with less environmental impact.
In this episode, I sat down with Maricel to talk about Compound Food’s mission in tackling climate change, her career in science without being a scientist, her journey of building a company at the start of the pandemic and the future of the coffee industry.
I hope you enjoy this conversation with Maricel Saenz.
From fighting bacterias to fighting climate change
Maricel shares why she left her first startup to start Compound Foods to fight climate change. Maricel’s experience in biotechnology and her longing to impact the world positively were the catalyst to launch Compound Foods and ultimately, what happens on a coffee farm in the lab.
Find out why Maricel decided to follow her passion to tackle climate change in this episode of Crossing Borders. If you want to learn more about Maricel’s backstory, I talked to her in Episode 76 about the battle against drug resistant bacteria and the challenges of raising capital in Silicon Valley as a Latina entrepreneur.
Drawing inspiration from nature
Research shows that 50% of the land we grow coffee on today may not be suitable for growing coffee in the future. A big chunk of coffee production could go away over the next few years due to environmental changes, for which Marciel believes we must take action and start producing coffee in an environmentally friendly way. Compound Food’s draws inspiration from nature and relies heavily on the fermentation process to create a product that has the same chemical composition of coffee beans. The microbes play a key role in creating flavors and aromas, and are grown efficiently and in a scalable way.
Check out this episode to learn more about why Maricel wants to make coffee without coffee beans!
Changing the mindset around climate change
Maricel conveys an empowering message to go from climate anxiety to taking action. We can still do something significant about climate change and the environment. Technologies and companies are being built around climate change and people have the power to make big changes through simple choices, like buying a product that has less of an environmental impact.
Listen to the rest of this episode to hear Maricel on changing the mindset and the advice she would give to her younger self.
Coffee is one of the most consumed products on the planet and the way we produce it today has a high environmental impact. Solving this global problem is not easy and needs all hands on the (coffee) table. If this resonates with you, Compound Foods is on the lookout for more passionate team members to join the team.
Check out this episode of Crossing Borders to hear Maricel tell her story in her own words and her enthusiasm about creating a climate-resilient future, starting with your morning coffee.
Outline of this episode:
[01:06] - The backstory of creating coffee without coffee beans
[02:30] - Why is coffee the perfect target?
[03:28] - Why does coffee contribute to climate change?
[04:10] - Why do we need to brew coffee without coffee beans?
[05:10] - Two minute background on Maricel
[06:05] - First startup experience
[06:40] - Singularity University and meeting her first co-founder
[07:10] - From fighting bacteria to fighting climate change
[08:03] - Can we do something for climate change now?
[08:40] - From climate anxiety to taking action
[09:27] - How to take action fighting climate change
[12:00] - Opening jobs at Compound Foods
[13:05] - What does it take to build a company like Compound?
[14:05] - From Costa Rica to the Bay Area
[15:33] - Fundraising for a live product
[16:25] - Thoughts on fundraising
[17:35] - Why is Compound not a synthetic food company?
[19:50] - What does the future look like?
[21:05] - Next steps for Compound
[22:09] - What advice would you give to yourself when you were first getting into tech?
Resources & people mentioned:
Sci-Fi Book: Seveneves by Neal Stephenson
Newsletter: Snaxshot
Podcast: Crossing Borders
For this week on the Crossing Borders podcast, we’re revisiting one of our greatest hits episodes featuring Javier García, Director of FEMSA Ventures.
Javier García knew that there were at least 50 ways of doing corporate venture capital the wrong way, which is why he took a couple of years to figure out how to do it right with FEMSA. Today, Javier is the Director of Corporate Venturing and Growth Capital at FEMSA’s corporate venture capital fund. FEMSA is a publicly-traded conglomerate company that started out as a brewery and has produced popular brands like Dos Equis and Tecate.
Founded in 1890, FEMSA has since branched out into other business verticals such as drugstores, gas stations, and restaurants, including OXXO, the largest chain of small-format stores in Mexico.
I sat down with Javier to talk about his transition from consulting to working at FEMSA and getting involved with Latin America’s venture capital ecosystem. We discuss innovation in corporations and Javier shares tips on how to collaborate with startups and large corporations.
Getting a slice of the innovation pie
According to Javier, FEMSA’s venture capital arm started as a mission to collaborate with the most disruptive external sources of innovation. He started to learn about the different ways to approach this collaboration by investigating and conducting over 30 interviews with people involved in the corporate venture capital world. Choosing the right way was another challenge.
Learn more about how Javier built an operational design for FEMSA to collaborate with the best startups on their business platform in this episode of Crossing Borders.
Engaging with the ecosystem from a perspective of learning
After studying mechanical engineering at university, Javier considered working in the aerospace industry as one of his potential paths. However, his first experience working for a consulting firm made him realize he liked problem-solving and that he wanted to be in a space where he would be closer to the execution of solutions and be continuously faced with learning opportunities. He explains that he found the ideal formula working with FEMSA and learning about Latam’s venture capital ecosystem.
Listen to this episode of Crossing Borders to learn more about how Javier got involved in Latam’s venture capital ecosystem.
A misalignment of incentives
Collaborating with a corporate venture capital fund can be very different from working with a traditional VC. Javier explains that there tends to be a misalignment of expectations between big corporations and entrepreneurs with regard to what actually happens at the startup. He sees this confusion during startup pitches where the entrepreneur prioritizes an investment over the actual collaboration.
Find out more about Javier’s recommendations for working with big corporations in this episode of the Crossing Borders podcast.
Javier García is making amazing collaborations happen between startups and corporations through FEMSA’s venture capital arm. His thirst for knowledge and his passion for problem-solving and execution are key to positioning corporate venture capital funds as attractive business partners.
Outline of this episode:
[1:41] - About FEMSA
[7:30] - Mechanical engineering in Monterrey
[11:55] - FEMSA’s investment strategy
[23:52] - Recommendations for working with big companies
[29:38] - Lessons learned from collaborating with startups
[36:24] - Advice to Javier’s younger self
[38:16] - Books, blogs, & podcast recommendations
[42:11] - What’s next for Javier and FEMSA ventures?
Resources & people mentioned:
FEMSA
Javier García
OXXO
Dos Equis
Tecate
Bain & Company
Books: Masters of Corporate Venture Capital, Corporate Venturing, The Three-Body Problem, Atomic Habits
Ep 26 Mak Gutierrez, Supporting Makers and Startups In Guadalajara
For this week on the Crossing Borders podcast, we’re revisiting one of our greatest hits episodes featuring Mariana Costa, CEO, and Co-founder of Laboratoria.
Mariana Costa, founder of Laboratoria, a programming bootcamp for Latin American women, found a way to mix two worlds she was passionate about: technology and helping women. Originally from Peru, Mariana combines technology with social impact by running programming bootcamps for women from underserved backgrounds. The program seeks to prepare these women for a career in tech by placing them in jobs with a success rate of over 85%. Laboratoria started operating in Lima, but has since expanded to Santiago, Chile, Mexico City, Guadalajara, and Sao Paulo.
Laboratoria tackles both sides of the equation by propelling a digital and cultural transformation within the tech companies so that they will continue growing their teams, but with a lens of diversity and inclusion.
In this episode, I sit down with Mariana and a third special guest, her two week old baby, to talk about how she got into tech with her background in social impact, and what it was like to be on a panel in Silicon Valley with Barack Obama and Mark Zuckerberg. We also cover her advice on building a non profit in Latin America, how companies can hire more women in tech, and Laboratoria’s plans for expansion across Latin America.
Becoming an Entrepreneur
While getting her Master’s degree in Public Administration and Development at Columbia University, Mariana and her husband, who is a programmer, decided to move back to Peru. Rodolfo, a friend from her Master’s program, had also moved back to Peru at the time, and together they started brainstorming on what could be done in their home country. It was clear from the team composition that it would be something on the social impact route combined with technology.
Before Laboratoria, Mariana and her team went through many ideas that didn’t get off the ground, and in that process stumbled upon a problem in the tech industry: the lack of female software developers. Learn more about how Laboratoria challenged the status quo on this episode of Crossing Borders.
“We were really lean”
Mariana recalls Laboratoria’s beginnings: running a pilot with 15 students, and being amazed by the interest that several companies expressed in hiring female developers. Although it was a very low cost pilot due to their limited budget, it was the validation they needed to realize that their program had growth potential. A better understanding of the market also taught them when to be aggressive, and when to be more cautious in Laboratoria’s growth. Learn more about Laboratoria’s impact on the tech industry on this episode of Crossing Borders.
Advice for hiring women in tech
Part of what Laboratoria does is work with companies to diversify their pipeline, a process which requires open minds and policies. Mariana explains that companies need to change their prerequisites and make an additional effort to recruit outside of the traditional universities in places like Laboratoria to include more women in their pool of candidates.
Find out what companies can do to have more diversity and inclusion in their hiring processes on this episode.
Mariana Costa is creating digital and cultural transformation in Latin America’s tech industry through her work with Laboratoria. She is helping women from low-income backgrounds unleash their full potential and overcome structural and societal barriers. Teams that are built with a lens of diversity and inclusion can make Latin America’s digital economy grow more quickly.
Outline of this episode:
[1:35] - About Laboratoria
[3:45] - Becoming entrepreneurs in Latin America
[7:01] - A picture Barack Obama and Mark Zuckerberg
[9:28] - Laboratoria’s success rate
[11:59] - Choosing the tech path
[13:54] - What did you do before you saw that weird screen of code?
[15:31] - Biggest lessons you learned from working in social impact
[17:48] - Finding a market for Laboratoria
[19:35] - Thoughts on international expansion
[22:51] - Raising money for Colombia
[25:54] - Strategies for hiring more women in tech
[29:18] - Advice to Mariana’s younger self
[30:50] - Books, blogs, and podcasts Mariana recommends
[32:30] - What’s next for Mariana and Laboratoria?
Resources Mentioned:
Laboratoria
The Lean Startup - Eric Ries
Masters of Scale - Ried Hoffman
How I Built This - Guy Raz
For this week’s episode of Crossing Borders, we’re revisiting one of our greatest hits episodes featuring Santiago Aparicio, CEO, and Co-founder of Ontop.
The future of work is going to be remote and decentralized, according to Santiago Aparicio, Co-Founder and CEO of Ontop, a payroll software startup that allows companies to legally hire and pay anyone in the world. Santiago is a serial entrepreneur and sales passionate who believes in the influence of developing markets in defining the future of work.
After long nights working on Excel sheets back in his banking days, Santiago decided he wanted a change. He reached out to Felipe Villamarin, co-founder at Rappi, and joined the team as its seventh employee, which really helped him to become an entrepreneur.
I sat down with Santiago to talk about his experience as an entrepreneur, while Santiago shared the story of Ontop and their meteoric growth in their first fifteen months (actively operating in over 190 countries, transacting over $2M per month).
Fundraising and starting his first two companies
For Santiago, the next frontier as a salesperson was fundraising, which pushed him to build his first company, Fitpal, a fitness and wellness platform for gyms in Latin America. But after Covid hit, Santiago and his cofounder decided to launch a second company, this time focusing on something becoming increasingly popular: remote working.
Listen to this episode of Crossing Borders to learn how Ontop raised its initial money from founders of all over the region.
Building a sales engine for high growth
Santiago shares why the best salespeople are the ones that focus on the input instead of the output, and how finding the most predictable metrics in the sales funnel are the first steps to create a replicable process that allows a company to grow internationally.
Find out about Santiago’s advice on productizing a sales engine, how to hit network effect, and why you should focus on building something small instead of building something huge in this episode of Crossing Borders
Biggest lessons as an entrepreneur
Santiago offers advice on being kind, passing the ball to the team and being in constant pursuit of the best talent for Ontop. We also discuss the importance of staying grounded and not letting fame get in the way of creating a product that people will really love.
Check out Santiago’s story in this episode of Crossing Borders and find out why you should exercise kindness and the importance of having uncomfortable conversations within a company.
Outline of this episode:
[02:18] - About Ontop
[02:39] - Top line metrics from Ontop
[02:39] - Santiago’s background
[04:53] - On joining Rappi
[07:05] - Launching Fitpal
[08:48] - Santiago’s biggest lessons
[13:54] - Coming up with the idea for Ontop
[14:23] - Fundraising for Ontop
[17:13] - The crazy world of fundraising
[18:42] - On building a sales engine
[19:14] - The best salesman (or woman)
[21:00] - Predictable metrics
[23:52] - The big milestones
[27:33] - Being famous is not being successful
[28:13] - Advice for a younger Santiago
[31:06] - How to hit network effects
[32:48] - The importance of hard conversations
[34:11] - The future of work
Resources & people mentioned:
Santiago Aparicio
Fitpal
Ontop
Measure What Matters by John Doerr - Book
The Hard Thing About Hard Things by Ben Horowitz
Radical Candor: Be a Kick-Ass Boss Without Losing Your Humanity by Kim Scott
Alejandro Gálvez was an early Mexican angel investor and now is Managing Partner of 99 Startups, a venture capital firm that invests in Latin American pre-seed and seed stage companies.
After studying law, Alejandro’s first step into the tech world was learning to code. However, it was networking, angel investing in great founders, and attending events like YC Demo Day that took Alejandro from coding to creating his fund.
In this episode of Crossing Borders, Alejandro talks about his podcast Fundadores, the differences between angel investing and fund investing, starting small for long-term success, and 99 Startups’ investment thesis.
Starting as an angel investor in 2016 Mexico
2016 was a turning point in Alejandro’s life as it was the year he started investing in Latin American startups.
Although he started his career pre-technology investing in real estate, he moved into tech as an LP in funds like 500 startups, Investo and Magma. As he learned from fund managers and entrepreneurs, Alejandro used what he learned to start his own fund.
Listen to this episode to discover how Alejandro decided to create his fund after several years of angel investing.
The Compound Effect
Alejandro’s approach to life and 99 Startups’ investment thesis are similar: take small, smart steps for bigger returns in the long run.
Alejandro believes that you can master something over the long term by taking small steps and practicing daily. As he says, he likes to make long-term bets and build long-term things with long-term people.
Check out this episode of Crossing Borders to learn why 99 Startups’ thesis is to stay small and get bigger returns.
Outline of this episode:
[01:30] - About 99 Startups
[01:45] - Alejandro’s background
[02:45] - Investing in real estate
[03:43] - From tech enthusiast to angel investor
[06:00] - Networking
[07:18] - Angel investing versus fund investing
[08:54] - Why did Alejandro start a fund?
[10:20] - Alejandro’s podcast Fundadores
[11:12] - Biggest lessons from producing a podcast
[12:50] - 99 Startups’ thesis
[14:46] - Reaching out to 99 Startups
[15:14] - Advice to younger self
[15:53] - Book and documentary recommendations
[17:00] - What’s next for 99 Startups?
Resources & people mentioned:
Alejandro Gálvez
99 Startups
Podcast Fundadores
500 Startups
Investo
José Vielma
Santiago Zavala
Miguel McAllister
Kaszek
Andreseen Horowitz
Nowports
Book Atomic Habit
Documentary Jiro Dreams of Sushi
Cristobal Perdomo is cofounder and General Partner at Wollef, a Latin American VC firm. Five years ago, I sat down with Cristobal to talk about Latin American venture capital in what turned into Episode 34 of Crossing Borders, where we covered the state of play of VC in 2018. Listen to our conversation for an update into what’s changed since our last sit down.
After getting an MBA and working in consulting in Brazil, Cristobal realized that there was a big opportunity to fund Latin American startups, especially in Argentina and Mexico. In that episode, Cristobal shares advice for managing a business in multiple countries, investing in startups across LatAm and tips for managing teams across borders.
Five years after that conversation, I sat again with Cristobal to discuss what's changed in Latin America’s VC ecosystem in the last five years.
Changes in LatAm’s startup ecosystem
In this episode, Cristobal shares his take on how Latin America’s startup ecosystem is improving, with more and better quality investors and founders. In conversation, he talks about the tourist capital and the tourist founders, the ups and downs of taking money from governments and the changes in Wollef’s thesis from fund to fund.
Lessons learned investing in Latin America
Cristobal shares his thoughts on talent, investing in great founders and in investing in great teams. Cristobal invests a lot of his time trying to understand if the founders will be able to acquire and retain top talent to help them build their businesses.
Listen to this episode to know more about what has changed for Wollef from fund 1 to fund 3, which LatAm country is the most interesting for investments today and all about Cristobal’s new podcast Indie vs. Unicorn.
Outline of this episode:
[00:31] - Introduction to Cristobal
[00:31] - Cristobal’s quick overview of changes in the ecosystem in the past five years
[04:34] - Thoughts on tourist capital and tourist entrepreneurs
[06:54] - Wollef’s evolution as a VC fund
[12:10] - Changes in Wollef from fund 1 to fund 3
[14:58] - Lessons learned from fund to fund
[18:40] - The most interesting countries to invest in right now
[21:41] - Thoughts on Colombia and the entrepreneur’s mindset
[29:23] - Technology’s role in economic development
[30:09] - Cristobal’s opinion on web3 and crypto
[33:12] - Documentaries and podcast recommendations
[34:37] - Advice to a younger Cristobal
[36:41] - Indie vs Unicornio, Cristobal’s new podcast
Resources:
Cristobal Perdomo
Crossing Borders Ep 34 with Cristobal Perdomo
Wollef
Documentary: Something Ventured
Documentary: General Magic
Podcast: Indie vs Unicornio
Cars and motorcycles are the most valuable assets for many Latin American families. People use them to access better opportunities and open income streams.
Colombian fintech R5 solves a major pain point for vehicle owners by offering low-cost, fast, and fair insurance and loans for vehicles. Its mission is to help vehicle owners save money.
Originally from Venezuela, Fernando Sucre, R5’s cofounder, was building a career in finance in the UK before moving to Colombia. Fernando used his banking experience to create a financial product that is improving the financial health of Colombians.
In this episode, I sat down with Fernando to discuss the lessons he learned from building tech businesses in Colombia, his path as an entrepreneur, hiring tech talent, and R5’s business model.
Starting a tech company in 2011 Colombia
In 2011, Fernando founded ComparaMejor.com in Colombia, which became one of the country’s leading insurance comparison websites. In 2018 ComparaOnline, the leading insurance comparison website in Latin America, acquired the company.
2011 Colombia was not the ideal place to start a tech business. When building ComparaMejor, Fernando lacked money and access to venture capital, and found it difficult to hire talent.
In this episode, Fernando shares the lessons he learned from building ComparaMejor in 2011 and R5 in 2018.
R5’s business model
R5’s business model is unique because it combines insurance and lending. R5 uses technology and algorithms to cross-sell by offering loans to clients who buy insurance and vice versa, thereby lowering prices
Traditional insurance companies often use very basic pricing methods. Instead, R5 built a pricing algorithm to provide better prices to customers.
Check out this episode of Crossing Borders to discover how R5 combined timing, artificial intelligence, and TV ads to become a successful business in 6 months.
Outline of this episode:
[01:10] - About R5
[01:37] - Insurance and lending for vehicles in Colombia
[03:07] - Fernando’s background
[03:50] - Steps that Fernando took to start his own business
[07:50] - Fernando’s decision to move to Colombia
[09:22] - About ComparaMejor
[10:32] - Starting a tech company in 2011 in Colombia
[13:37] - From R5’s idea to creating a business
[16:41] - How R5 became the business it is today
[19:29] - Special characteristics of the Colombian lending and insurance market
[21:08] - Advice to younger self
[22:34] - Book and podcast recommendations
[24:25] - What’s next for R5
People & resources mentioned:
Fernando Sucre
R5
ComparaMejor
ComparaOnline
Books
Principles: Life and Work by Ray Dalio
Poor Charlie's Almanack: The Wit and Wisdom of Charles T. Munger
The Almanack of Naval Ravikant: A Guide to Wealth and Happiness
Podcast The Knowledge Project
Only one inf ten Mexicans has access to a credit card. Many people have monthly incomes that are too low for traditional banks, or they are part of the 55% of Mexicans who form the informal, cash-based economy.
Vexi helps Mexicans get their first credit cards by analyzing data that banks don’t in order to issue credit. Users can build credit by using credit responsibly and paying off their bills each month. Vexi pairs this credit card with financial education to help people learn how to use their new credit cards.
In this episode I sat down with Cinthia Merlos, Vexi’s cofounder and Chief Product Office to talk about Mexico's financial system and lessons learned on her journey as an entrepreneur.
Taking a leap of faith
Cinthia had to learn from early on how to overcome challenges with the tools she had. Although she didn’t have the money to attend a top Mexican university, she was able to get a scholarship and a job to pay her way through university. . After graduating she landed a job at large company and worked her way quickly up the corporate ladder.
Like most entrepreneurs, Cinthia wasn't happy with the status quo and the way business was being done in Mexico. So, she took a leap of faith into entrepreneurship to help solve a problem she knew well: access to credit. In conversation, Cinthia tells us more about her entrepreneurial journey and her motivation behind developing Vexi’sl product.
The importance of listening to your customers
Vexi is a starting point for many Mexicans that are starting to build their credit history. To create a product people use and need, Cinthia invests a lot of her time talking to Vexi’s clients.
Listen to this episode to know how Vexi improves the lives of Mexicans by providing access to affordable credit and helps thousands of people build a strong financial future.
Outline of this episode:
[01:18]: About Vexi
[03:53]: Cinthia’s background
[06:64]: Cinthia’s motivations
[07:51]: Breaking into the entrepreneurial world
[09:21]: Lessons learned from her corporate career
[11:23]: Best thing of building Vexi as a business
[12:15]: Where is Vexi heading to
[13:36]: How are people using their credit card
[16:06]: Cinthia’s books and podcasts recommendations
Resources:
Cinthia Merlos
Vexi
Podcast: Cracks with Oso Trava
Book: The Analyst by John Katzenbach
Book: Azteca by Gary Jennings
Book: Becoming by Michelle Obama
Book: Leaders Eat Last by Simon Sinek
Twenty years ago, if you wanted to start a mobile telecom company, you had to either buy an existing company or build out extremely expensive infrastructure. Now, Oxio allows you to spin up your personalized, cloud-based mobile service in minutes using a simple API.
In this episode, I sat down with Nicolas Girard, founder and CEO of Oxio, the first telecom as-a-service platform that allows companies to offer their own telecom service about the platform as a service revolution that Oxio is leading.
Lessons learned working in government and starting startups
Nicolas’ first work experience was with the French government doing network security. After that he transitioned to research and fell in love with the telecom and wireless networks, where one of the byproducts of his research became his first company.
In this episode of Crossing Borders, Nicolas walks us through his journey from working for the French government to becoming an entrepreneur. He also shares his motivation for starting Oxio and some of the lessons learned dealing with the first tech bubble and the 2008 financial crisis.
Communication without cables
It might sound strange now, but 20 years ago people used Ethernet cables to connect to the Internet. When Nicolast first saw wireless communication, he was fascinated, which led him to dig deeper into the telecommunications industry.
Nicolas thought mobile connectivity was too expensive. In some markets one gigabyte of data costs the average wages of a full week’s work, making many people unable to be digital participants in the economy. In order to solve this problem, Nicolas’ idea was to build a global platform that became Oxio.
In this episode, Nicolas shares his vision on building Oxio and the importance of understanding your customer and the market by collecting data to create a personalized experience.
Bringing connectivity in Latin America
Nicolas’ business experience in LatAm made him realize the disparity of mobile operators in the region, and chose it as the best place to launch Oxio to improve connectivity in Latin America and create an experience that users want.
Listen to this episode of Crossing Borders to learn more about why Nicolas chose Latin America to launch Oxio, how crypto and web3 decentralized technology apply to telecom, and the importance of diversity in the workplace.
Outline of this episode:
[00:01] - Introduction to this episode
[01:20] - About Oxio
[03:23] - From working for the government to entrepreneurship
[05:51] - Wireless communication
[07:43] - Biggest lessons from working for the government
[10:49] - Biggest lessons learned from the financial crisis
[14:37] - How Oxio came to be
[16:22] - The affordability of mobile connectivity
[19:07] - About Brand IQ
[22:29] - Why is Latinamerica a great place to invest?
[26:43] - How crypto and Web3 apply to telecom
[33:15] - Advice to a young Nicolas
Resources and people mentioned:
Nicolas Girard
Oxio
Book: The Five Dysfunctions of a Team
Reid Hoffman podcast: Masters of Scale
Andreessen Horowitz Articles
Before Divibank, small and medium enterprises in Brazil only had two financing options: getting debt from a bank or raising venture capital. But most startups don’t meet bank financing requirements, and not every company can raise VC or wants to raise VC.
Divibank provides a third alternative for startups and SMEs: revenue-based financing. Divibank launched in 2020 by financing digital marketing campaigns via a revenue share model. Since then, Divibank has launched other products including inventory financing and recurring revenue financing.
In this episode, I sat down with Rebecca Fischer, Divibank’s CPO and cofounder to talk about what she learned from working on digital marketing campaigns for huge brands, how she got Divibank off the ground, and how Divibank provides a better financing alternative for entrepreneurs in Brazil.
The overlooked potential of ad spend
Before starting Divibank, Rebecca worked for an advertising agency where she helped companies grow via paid digital ads. Clients invested huge amounts of money in their digital marketing campaigns, and the returns were great.
During her time running ad campaigns, Rebecca discovered two things that kickstarted the idea for Divibank: ad spend was a real asset class that could be an alternative to VC funding, and many people weren’t taking their ad spend as seriously as she thought they should be.
Listen to this episode to discover how Rebecca found an opportunity to provide financing for entrepreneurs to scale through digital marketing campaigns.
Non-dilutive capital to extend entrepreneurs’ runways
Divibank provides financing for founders who don't want to dilute themselves through venture capital and want access to capital to scale their businesses.
The startup’s clients are usually digitally native companies that know what their revenue will look like in the short term. They are looking for financing, but they are not ready yet to split the pie with many other shareholders. Divibank gives them the freedom to choose whether to raise VC money or keep growing with non-dilutive capital.
Check out this episode to find out how Divibank is helping founders in Brazil extend their runways and raise when they’re at a higher valuation.
Outline of this episode:
[01:10] - About Divibank
[01:42] - What financing looks like for SMEs in Brazil
[03:40] - Divibank’s average client
[05:10] - Rebecca’s background
[06:00] - Lessons learned from working in advertising agencies
[08:08] - ABC of non-dilutive financing
[11:30] - Divibank’s zero to one
[12:58] - Divibank’s first steps
[14:43] - Divibank’s experience with fundraising
[16:30] - Where is Divibank today
[17:49] - Rebecca’s book recommendations
[19:21] - Rebecca’s advice to a younger self
[20:10] - What’s next for Divibank
Resources and people mentioned:
Rebecca Fischer
Divibank
Kenshoo
Nubank
Jaime Taboada
Book Piranesi by Susanna Clarke
Podcast Fintech Leaders
Argentina has the most US dollars in circulation of any country after the US. Argentina’s high inflation rate, currency controls, and multiple devaluations make it difficult for people to plan for their future. Saving is hard, and many people don’t have the tools to save efficiently.
Manuel Beaudroit is co-founder and CEO of Belo, a digital wallet that helps Latin Americans plan for their financial futures by saving and spending in both fiat and crypto.
Manuel started out studying biology, worked at Accenture, and then created multiple businesses, including a brand of customized USB flash drives, before starting Belo.
In this episode of Crossing Borders, I sat down with Manuel to talk about Belo, his thoughts on entrepreneurship in Argentina, and how Belo is solving a pressing financial problem. We also talk about the misunderstandings surrounding cryptocurrencies.
Why can it be hard to save money in Latin America?
Inflation in Argentina is approximately 60-70% per year, and for many years acquiring US dollars was the most efficient way to save money. At the same time, government regulations and currency devaluation made it increasingly complex for people to buy US dollars.
In this episode, Manuel explains why crypto is becoming popular among Argentines and other Latin Americans and why many are eager to try new financial technologies.
Transforming people’s perceptions of cryptocurrency
Retail-oriented cryptocurrency products are often built with complex technologies. Sometimes they mimic Wall Street dynamics, but very few people understand how to trade stocks without losing lots of money. Complex user experiences won’t work.
Manuel finds that the cryptocurrency industry insists on talking about the technology that surrounds it. Instead, he believes it should focus on discussing the problems it can solve. In this episode, Manuel shares why one of Belo's main features is its simplicity and accessibility.
Outline of this episode:
[01:20] - About Belo
[01:59] - What does inflation look like in Latin America versus the U.S.?
[04:30] - Manuel’s background
[06:00] - Previous ventures before Belo
[10:27] - Why is bitcoin popular in Argentina?
[13:25] - Why Manuel started Belo instead of anything else
[16:30] - How clients use Belo
[19:43] - How will Belo’s use cases and products evolve?
[23:11] - Misunderstandings of crypto and Web3
[25:56] - Book recommendations
[26:45] - Advice to younger self
[28:20] - What’s next for Belo
Resources and people mentioned:
Manuel Beaudroit
Belo
Bitex
Accenture
Books
Build: An Unorthodox Guide to Making Things Worth Making by Tony Fadell
Technological Revolutions and Financial Capital: The Dynamics of Bubbles and Golden Ages by Carlota Pérez
Laura Martínez is a Senior Investment Analyst at Magma Partners, and she joined the team in 2021. Previously, she spent two years at Mastercard, where she helped launch an in-house accelerator program and fell in love with startups. In this episode, we went through Magma’s investment process, what Magma looks for in startups, and Laura’s experience working as an Investment Analyst.
How to get funded by Magma Partners
Magma invests in Latin American startups solving the region’s biggest problems. The best way to get in touch is by creating a Magma Memo, which explains what your business does in detail, why you wanted to start your business, and gives our team enough information to decide if it may fit our thesis. Next, Magma analysts like Laura review your memo to either provide feedback, ask for additional information, schedule a call, or let you know it doesn’t fit our investment thesis.
As Laura explains, it is essential to provide clear and specific information to help us give you feedback as fast as possible and get you money as quickly as possible if it's a fit for our thesis.
Listen to this episode of Crossing Borders to learn about Laura’s advice for startups that want to apply for Magma’s funding.
Why Magma looks for founder market fit
Laura reflected on why founder market fit is important to Magma: why are you the best person to solve the problem you’re trying to solve? Why do you care about this problem? Will you keep executing even after it gets hard?
For example, Magma’s portfolio company Kushki’s four founders had deep payments industry experience before starting the company. And Maribel Domínguez, founder and CEO of Círculo de Belleza, had already spent nearly 10 years in the beauty industry.
Check out this episode to find out why Laura believes founder-market fit is key to building a successful business.
Laura’s experience as a Magma Analyst
Laura thinks of her job as an opportunity to help unleash the potential startups have to create groundbreaking technology. And in many cases, the products they build can be life-changing for people in Latin America.
In this Crossing Borders episode, Laura shares what she likes most about working at Magma. She also talked about what the fund is looking for in candidates that apply to Magma’s open positions.
Outline of this episode:
[01:30] - Laura’s background
[02:56] - Making the jump from corporate to the startup world
[04:02] - Why she decided to work in the startup ecosystem
[05:35] - Steps Magma takes towards an investment
[07:20] - Advice for filling out Magma’s Memo
[09:45] - What a first call with Magma Analysts looks like
[11:37] - Founder market fit
[14:30] - The decision to make an investment
[15:20] - Processes after investing in a startup
[18:34] - What does an Investment Analyst do day to day
[22:22] - Advice to herself when starting her journey at Magma
[23:24] - Laura’s favorite things about working at Magma
[24:53] - Book and podcast recommendations
Resources and people mentioned:
Laura Martínez
Nathan Lustig
Magma Partners
Kushki
Círculo de Belleza
Maribel Domínguez
The Magma Memo
Alexa Clark
Pedro Pablo del Campo
Book The Startup Nation
Gregorio Gilardini is the co-founder and CEO of Leasy, a Peru and Mexico-based startup that provides car financing for Latin Americans. Starting with ride-hailing drivers, Leasy is helping drivers who have good credit and income but that banks won't lend to.
In this episode, Gregorio shares his experience as an Italian living and creating a business in Peru and what it’s like to raise money and build a business starting outside of Mexico and Brazil.
Lessons learned by an Italian doing business in Latin America
Originally from Italy, Gregorio studied in England before moving to Peru. He didn’t like his work as an intern in corporate banking, which confirmed that he wanted to follow his family’s entrepreneurial mindset and start his own business. Eventually, family ties led him to apply for an investment job at a family office in Peru.
In this episode of Crossing Borders, Gregorio shares how he decided to move to Peru and talks about the different businesses he built and the lessons he learned before creating Leasy.
Starting with ride-hailing drivers as a wedge to open the market
As a frequent user of ride-hailing services in Peru, Gregorio noticed that many drivers rented their cars because they could not access credit to buy one. These interactions sparked the idea for Leasy. In Latin America, ride-hailing drivers can generate up to four times the average salary, but because they have no fixed contract, they cannot access traditional financing.
Gregorio shared the main differences between Latin America and the US ride-hailing markets and explained why Leasy’s model is working in Latin America.
Fundraising in Peru, a “non-sexy” country for VCs
Gregorio describes fundraising in Peru as a double-edged sword. There is little competition, which helped Leasy scale quickly. But the limited access to local venture capital made it particularly hard to start the journey. Gregorio explains that it took an enormous amount of time just to get someone to finance the cars. Leasy had to prove to VCs that their milestones were achievable and that they would scale to larger markets quickly.
Listen to this episode of Crossing Borders to learn about Gregorio’s advice on how to raise money in Latin America when your business is not based in Mexico or Brazil.
Outline of this episode:
[01:19] - About Leasy
[01:46] - Why Leasy’s model makes sense in Latin America
[04:32] - Financing for ride-hailing drivers in the U.S. versus LatAm
[09:49] - Gregorio’s background
[12:15] - How did Gregorio end up in Peru?
[13:33] - Why Gregorio decided to build Leasy
[17:33] - Lessons learned from entrepreneurial experiments pre-Leasy
[19:40] - Steps to build and grow Leasy
[23:35] - Fundraising in Peru
[27:06] - Advice on the fundraising process
[32:16] - Books and podcast recommendations
[34:48] - Advice to younger self
[36:5] - What’s next for Leasy
Resources & people mentioned:
Gregorio Gilardini
Leasy
Fair
Credit Suisse
Podcast How I built this by NPR
Book Moonwalking with Einstein
Almost two-thirds of consumers ages 18 to 40 say ads are disruptive and annoying, while 54% say they don’t spend any time watching television with advertising, according to a study by Marketing Dive. The survey found that 73% of younger consumers trust product reviews from “a person that seems like them,” while 62% trust the recommendations of people who follow the same creators. This yearning for authenticity makes influencer marketing an important tool for brands that seek to cut through ad clutter.
50 million creators advertise products worldwide and more brands are shifting from hiring big creators with huge audiences, to finding micro and nano influencers to target niche products and advertise their products in a more organic way.
In this episode I sat down with Alessandra Angelini, CEO and cofounder of Influur, a marketplace that makes it easy for brands and influencers to connect and work together,
to talk about influencer marketing, the latest marketing trends and how brands can benefit from working with influencers.
From news to social media entrepreneur
Before becoming an entrepreneur, Alessandra worked at CNN alongside her now cofounder Paola Coleman as part of the breaking news team. They were both used to contacting presidents, heads of state and various public figures without difficulty so that they could be interviewed on CNN programs. However, both were surprised to realize that it was not so easy to contact influencers.
For the duo, it was an "aha!" moment. In the creative world, influencers don't have LinkedIn or a professional platform to monetize their work. This realization led Alessandra to join forces with her cofounders and take the leap to launch a platform that would allow brands and influencers to easily connect and monetize their collaborations.
Listen to this episode of Crossing Borders to find out how the four Influur cofounders met, and how they went from an idea to building a working marketplace for the creator economy.
When your customers become your investors
Fundraising is fundamentally a relationship game, and to Alessandra, a personal one. She is building a community and looks for investors who not only want to generate a financial return, but also add real value to her company. Some of Influur’s own customers - the influencers - became some of their first investors. Talk about the perfect brand ambassadors!
Although Influur is changing the way influencers make money and the way new creators can grow on social media, brands are the ones having their own "aha!" moments with the realization that partnering with influencers has a stronger ROI than paid ads.
Listen to this episode to find out how Alessandra started her fundraising journey from doing a spreadsheet to having top celebrities like Sofia Vergara and Thalia in the investment team.
Outline of this episode
[01:10] - Introduction to Alessandra
[01:29] - About Influur
[02:17] - The world of influencers
[04:36] - Alessandra’s background
[07:06] - Meeting her co founders
[08:04] - Finding a problem
[12:28] - From idea to launching a startup
[13:55] - Fundraising
[19:47] - Why should brands invest in influencer marketing?
[23:10] - Alessandra’s favorites podcasts and books
[24:27] - Advice to a younger Alessandra
Resources and people mentioned:
Alessandra Angelini
Valeria Angelini
Paola Coleman
Fefi Oliveira
Influur
Howard Schultz Masterclass
Bob Iger Masterclass
Sara Blakely Masterclass
Zero to One by Peter Thiel
The Subtle Art of Not Giving a F*ck by Mark Manson
As an intern at a law firm, Juan hated parking in cash-only parking lots. After having to go to the ATM or getting countless parking tickets, he thought there had to be a better way. In 2016, Parco was born in Guadalajara, Mexico, and has since expanded into 28 cities across the country. Parco allows parking lot operators to install a software system to their existing parking systems for consumers to pay using a credit card via the Parco app. Users can also pay for parking tickets and get information about their driving history.
In this episode, we discuss how Parco is changing how the parking business operates and improving people’s lives across Latin America. We talk about his journey from working at a law firm to becoming a full-time tech entrepreneur and how the pandemic accelerated the company’s growth.
From law firm employee to full-time entrepreneur
Juan knew nothing about the tech business world when he started Parco, but he did know a problem when he saw one. Juan drove a car to run errands for his job at a law firm in Guadalajara, and parking was a nightmare because parking lots only accepted cash. After a few costly parking tickets, Juan pitched the Parco idea to his boss, who thought it was a great idea and said he was willing to invest.
In this episode of Crossing Borders, Juan talks us through his experience creating a company with zero experience to building a startup that plans to scale to multiple Latin American countries.
Creating an easy and transparent way for people to pay for parking in Latin America
Before Parco, parking meant long lines, carrying cash, or walking to an ATM to take out cash if you didn’t have any with you. Today, Parco allows people to pay for their parking via an app, which is 10x better than waiting in line or running back into a mall to search for an ATM.
Parco also generates user demographics and data for operators to understand how users behave and how often they park while providing transparency and safety.
Check out this episode of Crossing Borders to learn more about how Parco provides more revenue to parking operators and why they chose to be a software vendor instead of hardware.
Scaling Parco in Mexico during the pandemic
The pandemic was a before and after for Parco. Before the pandemic, Parco had only launched in 8 cities. Since then, the Parco team launched 20 more cities remotely.
The pandemic not only accelerated the parking industry’s digitization but also changed the way Parco interacts with customers. The app quickly transitioned from an added value to a necessity.
In this episode, Juan shares with us how the pandemic became a milestone for Parco because of how they learned to scale and expand.
Outline of this episode:
[01:20] - What problem does Parco solve?
[05:08] - Juan’s background
[07:15] - Creating a company with zero experience
[09:45] - Parco’s geographic expansion
[12:07] - Covid-19’s effect on Parco
[15:26] - Choosing to be a software vendor
[16:48] - Planning for a LatAm expansion
[18:23] - Parco as an operating system
[20:30] - Data analytics for operators
[23:48] - Advice for a younger Juan
[24:55] - Book recommendations
[26:25] - Parco’s plans for the future
Resources & People mentioned:
Juan José Leaño
Nathan Lustig
Parco
Books
The Almanack of Naval Ravikant: A Guide to Wealth and Happiness by Eric Jorgenson
How to make friends and influence people by Dale Carnegie
Alexa Clark is an Associate at Magma Partners, an early-stage venture capital fund based in Latin America. After working for four years at an accelerator in Guadalajara, Mexico, Alexa joined the Magma team as an Investment Analyst and worked her way up to Associate. Although she majored in International Relations, she pivoted to the startup world to create more impact in Latin America.
In this episode, Alexa talks about her unconventional path toward venture capital, explains what are some red and green flags when she meets startups, and shares lessons learned from her time in venture capital.
Patience is key to being a successful venture investor
Learning to be patient is crucial because VC is a no business. 99 times out of 100, investors have to tell founders they won’t invest in their startup. Getting comfortable staying no is one of the first steps to being a successful investor.
According to Alexa, trusting your gut and being proactive is essential. FOMO, or the Fear Of Missing Out, is a strong force in this industry, but good investors must overcome this fear and avoid investing in trends just because everyone else is doing it.
In this episode, Alexa shares her experience investing in early stage Latin American startups.
Investor’s advice to early stage founders
Alexa believes that simple storytelling is better than using complicated jargon. Investors want to understand why a team is trying to solve a particular problem, how they think about the problem, and why they will be successful in solving it.
Alexa sometimes meets founders that get carried away trying to create FOMO or try to fit a problem into a business model or technology instead of explaining the problem and solution clearly.
Alexa doesn’t expect early-stage startups to have everything figured out. Be honest about your numbers and answer questions directly.
Check out this episode of Crossing Borders to get more tips on how to talk to VCs.
Which industries drive the most impact?
Alexa decided to pivot to the startup world because she thought she could make a bigger impact helping founders solve Latin America’s biggest problems than via international relations. Founders that solve big problems can impact millions or hundreds of millions of Latin Americans.
Listen to this episode to discover why startups make Alexa feel hopeful about Latin America’s future.
Outline of this episode:
[01:23] - The day-to-day as an Investment Analyst
[02:16] - Alexa’s background
[04:18] - Working at a startup accelerator
[05:28] - Starting at Magma Partners
[06:28] - Alexa’s evolution as an Investment Analyst
[09:28] - Do’s and Don’ts for founders
[11:24] - Red flags when meeting startups
[14:51] - What’s interesting about tech in LatAm?
[16:46] - What does Magma look for in candidates for Investment Analyst positions?
[19:50] - Advice to younger self
[21:53] - Alexa’s favorite things about working at Magma
[23:37] - Book recommendations
Resources and people mentioned:
Alexa Clark
Nathan Lustig
Magma Partners
Books:
A room of one’s own by Virginia Woolf
A gentleman in Moscow by Amor Towles
Two months ago HR tech startup Revelo acquired Listopro, a Mexican tech talent marketplace. In this episode, I interviewed the founders of both companies: Lucas Mendes (Revelo) and Giuseppe Belpiede (Listopro). Together, these startups have more than 300,000 tech professionals and are the largest platform for US companies to hire Latin American talent.
Lucas, Revelo’s cofounder, is Brazilian and previously started a beauty e-commerce company which was backed by Tiger Global and Kaszek. Originally from Italy, Giuseppe cofounded Rocket Internet startups like as Linio and worked at Foodpanda.
In this episode of Crossing Borders Lucas and Giuseppe discuss building HR tech businesses in Latin America, share insights about why they decided to work together, and share fundraising advice for startups.
The impact of Covid-19 on the remote tech talent industry
Giuseppe and Lucas founded their startups before the Covid-19 pandemic transformed the talent market globally. Revelo helps companies find, screen, source, and onboard remote Latin American tech workers and Listopro is a marketplace that helps companies hire tech talent in Mexico. The pandemic was a tailwind for both businesses, and Revelo grew seven times since 2020.
Listen to this episode to learn how Listopro and Revelo are solving one of the biggest bottlenecks for companies: hiring high quality tech talent.
Why Revelo Acquired Listopro and Listopro said yes
The Covid-19 pandemic attracted more US companies to Revelo’s services, which led them to. setup headquarters in Miami, as 80% of its business is in the US. As they expanded, Revelo decided they should find top talent across Latin America, not just in Brazil and started looking for opportunities to expand in Latin America.
After getting to know each other,Revelo decided that acquiring Listopro’s was the best way to expand, and Listopro was fully onboard with the Revelo mission. for expansion. They believe they will grow faster together than separately.
Check out this episode of Crossing Borders to understand how these startups are well positioned to connect the Americas through remote tech work.
Fundraising advice for entrepreneurs
Lucas and Giuseppe have impressive track records as entrepreneurs and have raised venture capital for multiple businesses at different times in the VC cycle.
In this episode, they shared advice on how to approach fundraising and explained why persistence can pay off, consistency is key and discussed how investors make decisions based on trust. Find out more about their recommendations in this episode of Crossing Borders.
Outline of this episode:
[01:50] - About Listopro
[03:50] - About Revelo
[08:30] - Lucas’ background
[12:42] - Giuseppe’s background
[16:55] - Giuseppe as part of Linio, Rocket Internet and LSE’s mafia
[19:52] - Lucas’ decision to pivot to HR in tech
[22:41] - Lessons learned by Lucas with his first startup
[25:09] - Advice from Lucas on fundraising
[28:18] - What’s wrong with incentives in VC
[30:55] - Giuseppe on fundraising for Listopro
[34:10] - Revelo’s expansion outside Brazil
[36:59] - Acquisition deal between Revelo and Listopro
[40:50] - Book and podcast recommendations by Lucas
[41:45] - Book and podcast recommendations by Giuseppe
[43:00] - Giuseppe’s advice to younger self
[44:55] - Lucas’ advice to younger self
[47:23] - What’s next for Revelo and Listopro
Resources and people mentioned:
Giuseppe Belpiede
Listopro
Lucas Mendes
Revelo
Rocket Internet
Linio
Foodpanda
London School of Economics
Beleza na Web
Tiger Global
Kaszek
Magma Partners
Books/Blogs/Podcasts
The Obstacle Is the Way: The Timeless Art of Turning Trials into Triumph by Ryan Holiday
Ego is the Enemy by Ryan Holiday
Platform Scale: How an emerging business model helps startups build large empires with minimum investment by Sangeet Paul Choudary
Why We Sleep: Unlocking the Power of Sleep and Dreams by Matthew Walker
Steve Blank blog
NFX blog
Paul Graham blog
Open by Andre Agassi
There are nine million motorcycles in Colombia, a country of 60M compared to eight million in the US, a country seven times larger, and Brazilians own 14+ million motorcycles. In Latin America, motorcycles are not transportation, they're also a work vehicle for delivery and courier workers.
Freelancers who work for delivery apps like Rappi, Uber and Didi use motorcycles and bicycles to make deliveries, but gig workers make ~50% more money if they have a motorcycle, because they can make deliveries faster and fulfill more orders per day.
I sat down with Daniel Otero to talk about how he is tackling financial inclusion via his company Ozon, a platform that finances motorcycles for gig workers and couriers in Latin America. We also discussed his entrepreneurial journey, the growth of Latin America's Motorcycle market, the advantages and disadvantages of running a multi-country company, and Ozon’s plans for the future.
Latin American motorcycle use is more like motorcycle use in SE Asia
In Mexico, gig workers purchase nine out of ten motorcycles and the motorcycle market is growing quickly. As more Latin Americans purchase motorcycles, they become more important to Latin American economies. Daniel believes that Latin America might look more like SE Asia in the future. .
Learn more about Daniel’s insights on the data and trends of mobility in Latam in this episode of Crossing Borders.
Becoming an entrepreneur: From Zero to One
Daniel always dreamed about becoming an entrepreneur, but it wasn’t after working in a traditional company and finishing his MBA that he actually launched his first startup, Muvo, a micro mobility app that paved the way for Ozon.
Daniel used what he learned starting Muvo to launch Ozon. This meant that from day one Ozon had access to data and resources to start testing different business models.
Listen to this episode of Crossing Borders with Daniel Otero to find out more about learning from mistakes, the importance of befriending your competitors and how to find new business opportunities.
Outline of this episode:
[01:25] - About Ozon
[02:54] - Numbers and stats
[05:05] - A trend like in South East Asia
[07:33] - Daniel’s background
[09:38] - About Muvo and its story
[13:50] - On launching Ozon
[15:15] - Lessons learned
[15:55] - Expanding to Mexico
[16:37] - Advantages and disadvantages of being multicountry
[18:44] - Insights on fundraising
[20:47] - Where is Ozon today?
[22:04] - Expanding to Brazil
[22:58] - The Colombian Entrepreneurial Mindset
[24:47] - Differences and similarities between Colombia and Mexico
[25:58] - Books and podcasts recommendations
[27:47] - Advice to a young Daniel
[28:44] - Plans for the future
Resources & people mentioned:
Daniel Otero
Ozon
TV Series: The Dropout
Book: Blitzscaling from Reid Hoffman and Chris Yeh
For this week’s episode of Crossing Borders, we’re revisiting one of our greatest hits episodes featuring Benjamin Labra, CEO and Co-founder of Houm.
Latin America’s real estate market is opaque, broken, and bureaucratic. The home buying process in the region can take up to a year, and even just renting an apartment requires having another property as collateral in some countries. There are many pain points in the industry that are being unaddressed by the market.
That’s why Benjamin Labra is looking to fix the broken real estate industry in Latin America with Houm, an end-to-end solution helping property owners rent, manage and sell their properties through an online marketplace.
I sat down with Benjamin to talk about how he’s tackling some of the industry’s deepest-rooted problems and streamlining the home buying and renting process in the region. We also discuss his experience at Y Combinator and how to build and maintain company culture once you go remote.
Real estate runs in the family
Real estate runs through Benjamin’s veins. He comes from two generations of Chilean real estate developers and was practically raised on construction sites and he always knew he wanted to do something on his own. For four years he managed his own private equity real estate firm and eventually decided to jump into tech.
Learn more about Benjamin’s journey into tech in this episode of Crossing Borders.
Houm: allowing apartment rentals without a cosigner
One of the ways in which Houm’s solution is truly revolutionary for the real estate market is that they’ve gotten rid of the cosigner. To mitigate this risk, the proptech guarantees the payment to the landlord even if the tenant doesn’t pay. In doing so, property rentals become much easier and faster to process – and can be done in less than 24 hours, compared to up to 3 weeks without Houm.
Listen to this episode of Crossing Borders to learn more about how Houm tackles the pain points of the real estate industry in Latin America.
The YC stamp of approval
Getting accepted into YCombinator can help many early-stage startups. Even though Benjamin and his team knew they were on the right path, the accelerator’s stamp of approval validated their vision.
Learn more about the ways in which participating in YC transformed Houm as well as the perception of US investors in this episode of Crossing Borders.
Benjamin Labra’s extensive experience in the real estate industry makes him one of the best-equipped people to tackle the challenges that property owners and tenants face in Latin America.
Outline of this episode:
[1:10] - About Houm
[2:28] - Pain points of the real estate industry in LatAm
[4:00] - A family of real estate developers
[5:32] - On Chilean talent
[7:33] - Jumping into tech
[8:35] - Switching from the investment side to running a startup
[10:05] - Basics of renting a property
[13:20] - Speeding up the renting process
[16:17] - A change in US investors’ perception
[18:52] - Challenges of operating remotely
[20:28] - Advice to entrepreneurs in smaller LatAm countries
[21:38] - Proptech boom in LatAm
[22:30] - Books, blogs, & podcast recommendations
[23:00] - Advice to Benjamin’s younger self
Resources & people mentioned:
Benjamin Labra
Houm
Book: The Hard Thing About Hard Things
For this week’s episode of Crossing Borders, we’re revisiting one of our greatest hits episodes featuring Gonzalo Blanco, Co-founder of Quansa.
For years, Gonzalo Blanco and Mafalda Barros have seen how the misaligned incentives in Latin American financial products push the average person to make bad financial decisions. Due to this lack of guidance, people improvise and spend money without realizing the impact that their decisions have on their financial health.
This frustration with the lack of financial education led them to found Quansa, a corporate benefits platform focused on employee financial wellbeing. We invested in Quansa’s last round and are excited to support them on their mission to promote employee financial health throughout the region.
In this episode, I sat down with Gonzalo to talk about why the incentives in Latin American financial products are broken and how Quansa aims to change that. Gonzalo also shares his lessons learned from working in the corporate world, participating in Pear.vc’s accelerator, and going through the fundraising process in the US and Latin America.
Pushing for employee financial health with no hidden agenda
Latin Americans historically don’t trust financial institutions. Banks and financial institutions push products on their clients, and many make bad decisions. However, through Quansa’s digital diagnostic and personal financial coach, clients have transparency and can easily understand the impact of their decisions.
Learn more about how employees can incorporate healthy financial habits with Quansa in this episode of Crossing Borders.
Transitioning from 10 years in the corporate world
Gonzalo explains that there is no perfect recipe for a person’s decision to transition from the corporate world into entrepreneurship. For him, it was a matter of understanding the opportunities that would be available to him if he decided to continue working for a corporation. It was important for him to learn about company processes from larger organizations that had perfected them over time, but for the next step in his career, he wanted to be able to work with more speed and fewer limitations.
Listen to this episode of Crossing Borders to learn more about the lessons Gonzalo learned from working for a corporation.
From Stanford’s GSB to the Pear Accelerator 2020
The idea for Quansa originated in Stanford’s Graduate School of Business when Gonzalo was taking a class called Startup Garage, part of his Master’s program. Gonzalo and Mafalda were focusing on solving for financial health in Latin America. At that moment, they met Mar Hershenson from Pear VC who invited them to participate in Pear’s Accelerator. It opened a world of opportunities for them.
Check out this episode of Crossing Borders to learn more about how they attracted investors from the US and Latin America.
Gonzalo Blanco is providing a financial solution to the Latin American market that has employees’ best interests in mind with Quansa. With Mafalda, they are striving to change the way Latin Americans spend their money, putting their financial wellbeing first.
Outline of this episode:
[1:46] - About Quansa
[4:55] - The entrepreneurial ‘itch’
[6:15] - Transition from the corporate world
[10:26] - On meeting his co-founder
[12:47] - Misaligned incentives in financial solutions
[24:30] - Quansa’s fundraising process
[28:00] - Advice to Gonzalo’s younger self
[29:49] - Books, blogs, and podcast recommendations
[31:20] - What’s next for Quansa?
[33:00] - Magma Partners and Quansa
Resources & people mentioned:
Gonzalo Blanco
Mafalda Barros
Quansa
Startup Garage
Pear Accelerator
Farnam Street
Naval
Startup School
Magma Partners
Francisco Saenz
For this week’s episode of Crossing Borders, we’re revisiting one of our greatest hits episodes featuring Maribel Dominguez, Founder, and CEO of Circulo de Belleza.
After graduating from university in the US in 2009 at the height of the financial crisis, Maribel Dominguez decided to move back to her native Mexico until the economy got better. While she was home, Maribel and her dad came up with a business idea. They identified a problem that affects many industries: excess inventory. Together, they decided to found a company that helped corporations sell company’s surplus stock and landed star clients like L’Oreal and United Colors of Benetton.
That company she founded with her dad in 2009 would set the foundation for the eleven-year journey that would lead to Maribel founding Círculo de Belleza, a specialized B2B marketplace that supplies beauty salons and independent hairstylists.
I sat down with Maribel to talk about why the distribution system in the professional beauty market is broken and the enormous opportunity it presents in an industry that is often overlooked.
An alternative to the traditional supplier
Maribel explains that there is a disconnect between big brands and the long tail of hair salons and independent stylists. With Círculo de Belleza, this unattended segment of the market has access to top name brands that they wouldn’t be able to buy elsewhere. In addition to access, these clients can buy products at wholesale pricing and get products delivered anywhere in Mexico.
Learn more about how Círculo de Belleza helps these small businesses overcome the traditional barriers to high-quality products in this episode of Crossing Borders.
A business where everybody wins
Throughout her journey as an entrepreneur, Maribel always had a clear vision of the type of business she wanted to be a part of. For one, she seeks businesses that challenge the status quo while making sure that everyone involved is winning.
Find out how Maribel’s values translated to the way she decided on her business model in this episode of Crossing Borders.
On her decision to raise capital
During Maribel’s first ten years as an entrepreneur, she was bootstrapping her business– taking the returns and reinvesting them into the company. However, she realized that to transform the family-run business into a scalable solution she needed to think bigger, create something new that was scalable, and potentially raise external investment.
Listen to this episode of Crossing Borders to learn more about Maribel’s experience raising money during a pandemic.
Círculo de Belleza is a great opportunity to connect underserved beauty professionals with the beauty products they need to run and grow their business.
Outline of this episode:
[1:39] - About Círculo de Belleza
[6:45] - Maribel’s path to entrepreneurship
[20:00] - Lessons learned from a nonscalable business
[23:00] - The fundraising process
[27:09] - Books, blogs, and podcast recommendation
[30:52] - What’s next for Círculo de Belleza?
Resources & people mentioned:
Maribel Dominguez
Círculo de Belleza
Books: Playing to Win, The Relationship Cure
For this week’s episode of Crossing Borders, we’re revisiting one of our greatest hits episodes featuring Agustin Feuerhake, Founder of Fintual.
For retail investors in Latin America, the options to invest are limited. This space is often dominated by traditional banks that charge very high fees and involve processes that are quite complex for non-experts.
As co-founder and CMO of robo advisor Fintual, Agustin Feuerhake intends to change that reality by helping Latin Americans invest well. Fintual is a digital platform that makes investing in mutual funds more accessible through lower fees and simpler processes.
I sat down with Agustin to talk about his endeavors over the years as one of the most prolific entrepreneurs we’ve had on the podcast. He shares with us his reflections on reaching an exit with QueHambre as a young entrepreneur, as well as what it was like to have co-founded the first Chilean company to get into YCombinator.
Exiting QueHambre
When Agustin and his team were building the food delivery startup QueHambre –a novel concept for Latin America at the time– they were not comfortable with the idea of raising capital. According to Agustin, they had the wrong approach and thought of it as asking for money rather than selling part of their company. Once they ran out of money, instead of pursuing growth, they decided to sell the business.
Listen to this episode of Crossing Borders to find out why small exits are extremely important for budding ecosystems and what Agustin learned from this experience.
The best of both worlds
It was clear that Agustin and his team were on to something when they founded the software firm Platanus. There was high demand for their solutions which allowed them to filter through and pick the projects that they truly believed in. Sometimes, as in the case of Fintual and Buda, they would personally get involved with the projects. Agustin explains that this dynamic allows Platanus’ team to keep working together, while also working on individual businesses that each is passionate about.
Learn more about how Agustin works with his team and the success stories that have emerged in this episode of Crossing Borders.
Getting the YC badge
Agustin had been a fan of Paul Graham’s essays for a long time– before YC started to accept international companies into the program. So when his co-founder suggested they apply, it seemed like a long shot. But, much to his surprise, they got a callback and eventually became the first Chilean company to get into YC. Their investment prospects immediately changed after that.
Learn more about their experience applying for YC and why it was hard to raise capital in Chile before the program in this episode of Crossing Borders.
Agustin is changing the investment landscape in Latin America through Fintual. And by creating programs like Platanus’ Demo Day, he is giving back to the ecosystem by providing tech founders with the contacts and entrepreneurial know-how needed to transform their ideas into successful businesses.
Outline of this episode:
[1:28] - About Fintual
[5:03] - Early signs of a businessman
[7:24] - First job as a young professional
[8:42] - Getting into QueHambre
[10:50] - Major takeaways from QueHambre
[12:08] - QueHambre’s blog post series
[17:27] - About Platanus
[20:12] - Creating Buda
[22:57] - Agustin’s business strategy
[24:46] - Criteria for choosing a project
[26:18] - The first Chilean company at YC
[28:50] - Lessons learned at YC
[30:25] - Struggling to raise money in Chile
[32:47] - Changing his view on raising money
[33:34] - Advice to Agustin’s younger self
[34:44] - Books, blogs, and podcast recommendations
[36:44] - Platanus’ Demo Day
[38:34] - What’s next for Fintual?
Resources & people mentioned:
Agustin Feuerhake
Como vendimos una empresa de 2 empleados en cerca de $1M
Fintual
Jaime Bünzli
QueHambre
Platanus Ventures
Buda
Voxound
Betterment
Wealthfront
Books: Lifespan, Made to Stick, Thinking Fast and Slow
For this week’s episode of Crossing Borders, we’re revisiting one of our greatest hits episodes featuring Ximena Aleman, co-CEO and co-founder of Prometeo.
~70% of Latin Americans are unbanked or underbanked. That means that there’s a huge opportunity to improve access to financial products and services across the region by leveraging data and technology.
Ximena Aleman is co-founder and CEO of Prometeo, a startup that develops Open Banking APIs for fintechs and financial companies in Latin America. We invested in Prometeo in 2019 to support its mission to provide the infrastructure needed to help the region’s fintech ecosystem evolve with better products and services.
I sat down with Ximena to talk about LatAm’s fintech wave and how Prometeo is building the future of financial services in the region. We also discuss her impressive career trajectory – from journalist to entrepreneur– and what it means to be a non-elite Uruguayan female founder in fintech.
A concentrated financial landscape
Ximena explains that in Latin America, a very small number of banks (4-5 in some, 2-3 in others!) generally have 80% of the market share in each Latin American country, compared to the US where there are thousands of banks across the country. In addition to this market concentration, most banks are more conservative and invest less in innovation. This conservative mindset results in financial products and services that are outdated and don’t necessarily respond to the population’s evolving needs.
Learn more about how Prometeo is addressing this problem in this episode of Crossing Borders.
Jumping from journalism into tech
After conducting interviews with many tech entrepreneurs during her journalism days, Ximena was inspired by what was happening in the tech scene. It was while working at a publishing house that she learned about scalable business models for the first time. That experience convinced her that she wanted to create her own company.
Listen to this episode of Crossing Borders to learn more about Ximena’s path to fintech.
Embracing fundraising from Uruguay
For Ximena, being a Uruguayan female founder in fintech used to just be contextual information. It was when she started fundraising that she realized that these labels had a meaning. In understanding what it meant to be a non-elite or an underestimated founder, Ximena was able to make sense of why certain situations or processes weren’t following through as she had expected.
Learn about why Ximena considers that there’s power in understanding these labels and how she finds ways to reframe what it means to be an elite founder in this episode of Crossing Borders.
Ximena Aleman is redefining what it means to be an elite founder with her drive and passion for the fintech ecosystem. With Prometeo, she is powering the next wave of innovation in LatAm’s fintech scene.
Outline of this episode:
[1:35] - About Prometeo
[1:50] - Differences between LatAm and US markets
[4:58] - Being an entrepreneur from Uruguay
[6:58] - From journalism to creating a product that scales
[12:25] - Choosing to specialize in fintech
[15:45] - Understanding the ‘elite’ labels
[27:15] - The female founder in fintech experience
[30:54] - Advice to Ximena’s younger self
[35:23] - What’s next for Prometeo?
Resources & people mentioned:
Ximena Aleman
Prometeo
For this week’s episode of Crossing Borders, we’re revisiting one of our greatest hits episodes featuring Deepak Chhugani, CEO and founder of Nuvocargo.
Deepak Chhugani’s multicultural background was considered rare and unexpected in Guayaquil, Ecuador, where he grew up most of his life. He was born in Kenya to Indian parents who migrated to Ecuador in their late 20s. Logically, after studying at university in the US, Deepak wanted to find a way to connect all of these experiences. When he worked in investment banking in New York and Mexico, he saw the intersection that existed between the US and Latin America. Specifically, in trade with Mexico– the US’ largest trading partner.
Coming from a family with a background in logistics, Deepak founded Nuvocargo, a digital freight forwarder and licensed customs broker that helps companies move physical goods between the US and Mexico.
In this episode, Deepak shares stories about growing up in Ecuador as an Indian immigrant, his experience in investment banking in the US and Latin America, and the reason for pivoting into Nuvocargo after going through YCombinator. We also delve deep into the complexity of carrying out international trade and how Nuvocargo’s solution helps to streamline those processes.
The Lobby
When Deepak was starting his first company, he stood firm on the idea of working on a solution to a problem that affected him personally. At the time, one of his greatest accomplishments had been getting a job in investment banking despite having all the odds against him for that position. His first startup, the Lobby, originated from that experience, and was the vehicle that got him into YC as a single non-tech founder. Although he didn’t follow through with the model, it taught him valuable lessons on what it takes to be an entrepreneur.
Learn more about Deepak’s major takeaways from his first startup in this episode of Crossing Borders.
Investors’ reaction to pivoting
It takes a lot of courage to scrap a fully-fledged business model and start over. Even more so when investors are already involved. Deepak did just that when he decided to pivot his first startup to what is today Nuvocargo. Even though some investors pulled out of the deal, the ones that stayed did so because they had invested in the team. Some of them even tripled their investments with the new business model. Deepak explains that how investors react in these situations can speak volumes of their character.
Listen to this episode of Crossing Borders to learn more about Deepak’s pivoting process and the reaction from investors.
“Everyday there are about 15K-20K trucks crossing the border”
Deepak explains that most people are unaware of the complexity involved in international trade, despite it being one of the biggest industries in the world. Transporting goods across borders is a highly complex process that can involve seven to eight different stakeholders, different currencies, laws, and languages. It’s an operation that requires a lot of knowledge and efficiency. Nuvocargo helps coordinate that complexity, and digitizes processes that oftentimes are still relying on analogue systems.
Find out in this episode of Crossing Borders how Deepak is bringing innovation to an industry that has yet to jump on the digital transformation other industries are already experiencing.
Deepak Chhugani is at the forefront of innovation in the trade and logistics industry in Latin America. He is leveraging his multicultural background, expertise on logistics, and passion for the region to bring transparency and visibility to trade between the US and Latin America.
Outline of this episode:
[1:46] - About Nuvocargo
[2:40] - A multicultural upbringing
[4:15] - An Indian immigrant in Ecuador
[6:50] - Choosing entrepreneurship
[8:55] - Pivot into Nuvocargo
[17:40] - Investing in the team
[20:36] - Deepak’s unfair advantage
[23:03] - Import-export process in US-LatAm
[27:00] - Trade market size
[29:16] - Nuvocargo’s fundraising process
[32:50] - Books, blogs, & podcast recommendations
[34:14] - Advice to Deepak’s younger self
[35:44] - What’s next for Nuvocargo?
Resources & people mentioned:
Deepak Chhugani
Nuvocargo
The Lobby
YCombinator
Magma Partners
ALLVP
Books: The Disunited Nations
Blogs: AVC
Podcasts: YCombinator, Dynamo
Izabel Gallera is a Partner at Canary, a venture capital firm born in Brazil that invests in early-stage Latin American startups. She describes Canary’s core business as leveraging its network to create connections and help founders fundraise for their startups.
Izabel is from Brazil, and as an engineer, only discovered the startup world after graduating and entering the job market. Working at Endeavor, she met the Canary partners which would pull her into the VC world.
In this episode, Izabel shares Canary’s thesis and explains why the firm chooses to work with very early-stage startups. She also describes how the startup ecosystem evolved since Canary’s beginnings and talks about why founders shouldn’t underestimate the power of connections.
Betting on early-stage startup founders
Canary does not focus on business models or industry sectors because they aim to get involved early with startups and accompany them through their journey. The firm wants to be the first institutional investor of startups that can disrupt markets and whose founders want to build massive businesses.
Listen to this episode to know why Canary invests in startups that are just starting to get off the ground to help them achieve great impact.
The importance of connections in the VC world
Izabel explains that Canary helps founders raise funds and connects them to networks of experienced people where they can exchange value. The advice she would give to her younger self is to reinforce her network, which is also her advice to founders of early-stage startups.
In this episode, Izabel explains why it is important to find the right fund at the right stage. For example, Canary is a top fund for early-stage ventures because its specialty is to leverage connections and relationships.
The evolution of the startup ecosystem in Latin America
Canary got into the VC game in Latin America before Latam startups took off: since then there was a wave of tech talent, while the market size was huge in countries like Brazil, and capital was flowing in from other continents.
Izabel has witnessed the ecosystem’s evolution and helped support some of Latin America’s top companies. Izabel shares that the number of startups they interview per month in Canary rose from 30 when they started to 500 or more now. Check out this episode of Crossing Borders to understand how Izabel thinks about Latin America’s startup ecosystem.
Outline of this episode:
[01:20] - About Canary
[03:20] - Early-stage startup thesis
[07:01] - Izabel’s background
[09:21] - Evolution of the startup ecosystem
[13:48] - Expanding to other countries in LatAm
[16:04] - Lessons learned as an investor and advice for founders
[20:27] - Why did Canary choose to invest in early-stage startups?
[24:17] - Advice to founders that want to partner with Canary
[25:51] - Biggest leverage points for founders and lessons learned helping entrepreneurs on their journey.
[27:57] - Advice to younger self
[29:20] - Podcast recommendations
People & Resources mentioned:
Izabel Gallera
Canary
Endeavor
a16z Podcast
Masters of Scale Podcast
For this week’s episode of Crossing Borders, we’re revisiting one of our greatest hits episodes featuring Caterine Castillo, CEO and co-founder of Neivor.
In Latin America, a building manager typically has to handle thousands of apartment units and tenants. This means simultaneously dealing with building maintenance, reconciling payments, and meeting tenant and landlord requests. Currently, this is done manually with pen and paper, maybe an Excel spreadsheet or through WhatsApp which leads to inefficiencies and unhappy residents.
Caterine Castillo, Neivor’s co-founder and CEO, is trying to make living in Latin America’s apartment buildings and condos better. Neivor is a vertical SaaS platform that simplifies condo fee collections and streamlines management and communication between residents, property owners, and building managers. Neivor processes tens of millions of payments per month and help manage 3000+ apartment buildings in Mexico, Colombia, and Ecuador.
I sat down with Caterine to talk about the pain points of property management in Latin America and the differences in Neivor’s reception between the Colombian and Mexican markets. We also talk about her experience in finance before becoming a founder and what it was like fundraising for the first time.
Growing Neivor’s team
One of the biggest lessons Caterine learned from working at corporations was managing large teams. These skills are extremely critical in Neivor’s roadmap with a team that is currently growing from 18 employees to 75 in under a year. Caterine also explained that hiring won’t solve a company’s problems immediately. It’s important to understand that people are managing a big learning curve when they join a new team.
Listen to this episode of Crossing Borders to learn more about Caterine’s main takeaways from her experience working in corporations.
The importance of connections in VC
Caterine’s first fundraising experience was with Neivor. She explains that having a great solution and an underserved market with low-hanging fruit sometimes isn’t enough. Having the right connections is key. She had connections in the corporate world, but not in the VC world. Besides funding, Caterine considers that those first warm introductions are game-changers for any entrepreneur that is new to the space.
Learn more about Caterine’s fundraising journey with Neivor and the connections that were key to their growth in this episode of Crossing Borders.
Property management: Colombia versus Mexico
Expanding to a new market in another country involves a lot of risks. Consulting with others who have done it before can be really helpful. However, there’s so much more insight that can be gained from being on the ground and talking to clients before making a decision to expand. During her time in Mexico, Caterine discovered that their target market was much more receptive to Neivor’s product, requiring a different marketing approach than in Colombia.
Check out this episode of Crossing Borders to learn more about the differences between the Colombian and Mexican property management markets.
Caterine Castillo brings her expertise in business development, sales, marketing to propel Neivor’s solution forward in Latin America. Her innate passion for team building and creating solutions that disrupt the market will be key to Neivor’s success.
Outline of this episode:
[2:34] - About Neivor
[5:20] - Dealing with fraud
[6:35] - Where Neivor operates
[7:02] - Becoming an entrepreneur
[8:20] - From fintech to founder
[9:14] - Biggest lessons learned in fintech
[10:24] - Growing Neivor’s team
[13:40] - Fundraising process
[15:30] - Jumping to Mexico
[18:00] - How to sell in Mexico
[20:27] - Books, blogs, and podcast recommendations
[21:20] - Caterine’s advice to her younger self
[22:09] - What’s next for Neivor?
Resources & people mentioned:
Caterine Castillo
Neivor
Books: The Hard Thing About Hard Things, Lean In
Santiago Suarez is the CEO and co-founder of Addi, a Latin American fintech company. Addi promotes and enables digital commerce in Latam. As Santiago puts it, Addi’s mission is to enable every Latin American to buy and shop digitally. Addi offers “buy now pay later”, and is currently active in Colombia and Brazil.
Originally from Colombia, Santiago moved to the US on a full scholarship. After university and working in the finance industry, he decided to move back to LatAm. In this episode, Santiago talks about his background in financial services, and how it helped him become an entrepreneur.
Latin America’s payments problem
Latin America has over 90% smartphone penetration. However, most Latin Americans are not full participants in the digital economy. Santiago realized this was a big problem, but also a great opportunity to create a startup by solving it.
Listen to this episode to learn how Addi allows customers to buy online using installments. We also discuss why Santaigo views “buy now pay later” as a payment option, not a credit business.
The organic approach to idea building
Santiago's background in finance, passions and interests drove him to start a fintech. We discuss metrics and the importance of timely launching and iterating a MVP. Also, Santiago discusses how to solve the payment problem they first had to focus on trust.
In this episode, find out Santiago’s advice to entrepreneurs. Some of his advice is on empowering teams and in which level to operate as a CEO.
Fundraising advice
Santiago knows that when you raise venture capital, you're paying for forward growth. We also discussed expanding, and how you package your business is critically important.
Listen to this episode to learn why the biggest problem in fundraising is to think that investing is a rational decision. We also discuss the power of engaging investors with your story and the asymmetry in the investor-founder dynamic.
Outline of this episode:
[01:57] - Overview of ecommerce and payments in Latam
[03:31] - On becoming an entrepreneur
[04:52] - Coming back to Latam to start a company
[06:04] - Things learned in the financial industry
[07:50] - Differences between launching a startup in the US vs launching one in Latam
[10:11] - The process of picking an idea
[12:51] - Discussing product
[14:50] - The real problem around payments in Latin America
[16:20] - Starting operations
[18:25] - Advice to other founders
[20:07] - Talking about fundraising
[22:22] - Founders’ mistakes in fundraising
[26:11] - The future for Addi
[27:23] - Advice to Santiago (before launching a startup)
Resources and people mentioned:
Rob Frey Podcast
Billion Dollar Loser: The Epic Rise and Spectacular Fall of Adam Neumann and WeWork by Reeves Wiedeman
The Advantage: Why Organizational Health Trumps Everything Else In Business. Written by Patrick Lencioni
The 15 Commitments of Conscious Leadership: A New Paradigm for Sustainable Success by Jim Dethmer
Conscious Leadership
The Alpinist documentary of Marc-André Leclerc
For this week’s episode of Crossing Borders, we’re revisiting one of our greatest hits episodes featuring Gabriela Estrada, CFO and co-founder of Vexi.
Only one in ten adults in Mexico have access to a formal credit card, according to Gabriela Estrada. That’s more than 70 million people that are not able to build a credit history. As cofounder and CFO of Vexi, Gabriela is on a mission to make credit accessible to Mexico’s underbanked population.
Originally from Chihuahua, Mexico, Gabriela was at the peak of her career at Citibanamex in Mexico City when she decided the corporate world wasn’t for her. She was the only female director as well as the youngest among her peers by 10 to 15 years. After leaving the bank, her friend convinced her to cofound Vexi with him, where she quickly fell in love with the power of impacting her community through fintech.
I sit down with Gabriela to talk about her experience as a woman in finance in Mexico and some of the challenges she now faces as a female founder when seeking investment. We also discuss why she decided to tackle financial inclusion and how Vexi is helping increase financial literacy in Mexico.
Vexi’s clientbase
Gabriela discovered that Vexi was a way of helping the local community by leveraging her extensive experience in finance. She explains that, although Vexi’s clients come from diverse backgrounds, they have two common denominators: resilience and loyalty. These individuals are used to rejection from traditional financial institutions. When they find a bank that believes in them, they want to repay that trust.
Check out this episode of Crossing Borders to learn more about how Vexi is helping make credit accessible to underserved Mexicans.
Credit vs. debit
Debit cards are a huge success in regions like Europe. However, Gabriela explains that in Latin America the financial needs are different and the real game-changers are credit cards. However, finding a way to underwrite people that have never been underwritten before can be a daunting task. Gabriela explains that it requires a lot of creativity to be able to change the lives of the underbanked.
Learn more about how gaining access to credit can change the lives of Latin Americans on this episode of Crossing Borders.
The risk bias in venture capital
As a female founder, Gabriela explains that she gets asked weird questions when raising money, making it difficult to build relationships with male venture capitalists. It took her some time to realize that investors weren’t asking her about the risks of the business because she was CFO of the company. It was because of her gender.
Listen to this episode of Crossing Borders to learn about how Gabriela learned to turn those questions into opportunities
Gabriela Estrada took a leap of faith when she left her job at one of the largest banks in Mexico. Since then, she has been using her knowledge to help thousands of people gain access to credit with Vexi. Her story is an example for women to continue to break the glass ceiling.
Episode outline:
[1:17] - About Vexi and Gabriela
[3:25] - On Vexi’s client base
[7:54] - From Chihuahua to chilanga
[9:32] - Falling in love with entrepreneurship
[12:11] - Being a woman in finance in Mexico
[13:50] - Lessons learned from working in banks
[15:56] - Reaction from friends and family
[17:39] - Choosing Vexi and financial inclusion
[19:34] - Credit vs. debit
[22:24] - Avoiding loan sharks
[24:01] - Tackling financial illiteracy
[25:50] - Raising money as a female founder
[29:45] - Recommendations on books, blogs, or podcasts
[30:56] - Advice on taking the leap
[32:02] - What’s next for Vexi?
Resources & people mentioned
Gabriela Estrada
Vexi
Book: Delivering Happiness
Stefan Moller, CEO of Klar, a Mexican fintech democratizing access to banking, wants to change the way Mexicans think about money.
Stefan grew up between Mexico and Germany and worked traditional jobs to finance his own ventures. His experience working traditional jobs and startup companies led him to start Klar to try to make Mexicans' lives better.
According to Stefan, traditional banking in Mexico is monopolistic and most Latin Americans have a negative experience dealing with banks. Klar makes it easy for Mexicans to use their smartphones to access better loans, savings, and investment products.
In this episode, Stefan shares his entrepreneurial experience growing up in different cultures. We also talk about fintechs in Mexico and how Klar builds trust with its users.
Lessons from growing up in Mexico and Germany
Spending time between two different countries gave Stefan a unique perspective. Stefan spent time between Mexico and Germany, giving him a unique perspective. He saw how experiences and motivations can be completely different in each culture, which helped him decide to build better financial solutions for Mexico.
In this episode, you'll learn how Stefan built a team with top-tier talent.
Klar's long-term strategy for success
Before Klar, Stefan created several successful ventures, including selling 2 million Chinese Hologram bracelets in Mexico. In Germany, he built a market intelligence company that packaged business research papers to sell to large companies.
The lessons learned while starting this company allowed Stefan to launch Klar. This also helped him to create a strategy to build the users’ trust in the product.
Check out this Crossing Borders episode to learn Klar's thesis and why it is compelling for both users and investors.
Simplifying access to financial services for Mexicans
In Mexico, opening a bank account involved signing many papers and long waiting times for service. Stefan describes Mexicans’ relationship with banks as a “necessary evil.” Klar is developing better relations between banks and their users to change how people think about money. For example, Klar allows Mexicans to access payroll advances with the click of a button.
In this episode, learn how Klar provides effective, tailored, and secure financial services.
Outline of this episode:
[01:35] - About Klar
[02:01] - How Klar is an alternative to traditional financial services
[03:55] - The problem with traditional banks
[05:30] - Stefan’s background
[07:35] - Growing up across different cultures
[09:16] - Stories of Stefan’s past businesses
[11:25] - Lessons learned through his path in entrepreneurship
[13:00] - Why did Stefan fund Klar?
[15:50] - Creating Klar from the start
[18:38] - Stefan’s take on neobanks
[20:58] - Discussing the exit of Citi’s retail banking from Mexico
[22:58] - Fintech’s strategy of bundling services and products
[25:05] - Raising funding rounds for Klar
[27:15] - Advice for younger self
[29:26] - Book recommendations
[30:30] - The future of Klar
Resources & people mentioned:
Stefan Moller
Klar
Citi exiting retail banking from Mexico
Book How Will You Measure Your Life? By Clayton Christensen.
Nathan Lustig
Banafsheh Fathieh invests in startups that positively impact their communities in Latin America. As an early-stage venture capitalist looking for opportunities in the Latin American market, Banafsheh is the Head of Investments at Prosus Ventures, the venture arm of Prosus Group, the international Internet assets division of South African multinational Naspers, and one of the largest tech investors globally.
The company has a history of working in emerging markets, where it partners with entrepreneurs with high potential and an ambition to scale globally. Prosus tries to provide tailored support for startups to impact the communities where they operate.
While Banafsheh dreamed of working as a diplomat, she ended up working in finance and investing almost by accident. Now she is passionate about helping Latin American startups scale.
Listen to this episode to hear about Prosus Ventures’ investment thesis, and learn why Banafsheh thinks Latin America is any VCs dream market. She also shares advice on how trusting your own gut and research can be more important than cold facts and macro trends.
LatAm: talented entrepreneurs with capital constraints
While analyzing startups globally, Banafsheh realized that Latin America has a mismatch between available capital and the talent pool relative to other parts of the world.
Latin America has gone through several unfavorable cycles that ended up spooking investors, who overcorrected and reduced the amount of capital allocated to both equity and credit. This overcorrection created a value asymmetry, where valuations did not match the quality of the entrepreneurs.
In this episode, Banafsheh Fathieh explains the lack of investment in Latin America and how it bred a generation of creative founders that are blooming recently.
Latin America’s underserved tech-savvy population
Latin America has brilliant founders and a population of technology enthusiasts who love all things digital. As an American of Iranian descent, Banafsheh got to know Latin American culture through her university classmates. She spent time in Brazil and Argentina and found structural issues that founders could help solve. Banafsheh is helping foster Latin Americans’ entrepreneurial spirit and helping them close the access gap in products and services for an underserved market.
Check out this episode of Crossing Borders to learn more about Banafsheh's insights on why, tech is moving in the right direction, despite some macro trends creating headwinds for some Latin American countries.
Prosus Ventures patient investment thesis
Prosus Ventures is focused on helping early-stage entrepreneurs navigate the venture capital world. Prosus Ventures is stage agnostic and they focus on the talent and less on spreadsheets. Prosus’s investments in Latin America are mainly in consumer Internet and fintech companies. Unlike a traditional fund, they can work with a company for decades and be long-term holders, this allows them to support startups through many cycles with no pressure to deploy.
In this episode of Crossing Borders, Banafsheh explains her role in Prosus Ventures and why their structure allows them to provide “patient capital” with no artificial constraints.
Outline of this episode:
[01:25] - About Prosus Ventures
[02:47] - What types of companies does Prosus invest in?
[05:40] - Banafsheh’s background
[07:59] - Diplomatic training’s lessons
[09:17] - First connection to Latin America
[12:15] - Evolution of investment thesis in Latin America.
[15:39] - Receiving investment from a fund vs. from Prosus Ventures
[18:23] - Some of Prosus’ most interesting investments
[23:02] - Being a bullish investor for Latin America
[27:30] - Advice for founders
[29:15] - Banafsheh’s recommendations
[30:30] - Advice to Banafsheh’s younger self
[32:18] - What’s next for Prosus Ventures?
People & resources mentioned:
Banafsheh Fathieh
Prosus Ventures
Nathan Lustig
Georgetown University
Movile
Website
Crossing Borders Episode with Fabricio Bloisi, CEO of Movile
iFood
Website
Crossing Borders episode with Carlos Moyses, CEO of iFood
Klar
Azos
Kovi
99 minutos
Doménica Obando, CEO and co-founder of Talently, is helping build Latin America into the next tech talent hub while offering better jobs to skilled developers and data scientists.
Originally from Peru, Domenica worked in an NGO and the public sector before becoming a full-time entrepreneur. First, she founded Andi, a learning platform, which afterward she decided to pivot into Talently.
Talently is a talent accelerator for tech professionals in Latin America. Software developers and data scientists who feel stuck in their careers apply to Talently to upgrade their skills and land better jobs in return.
Talently diagnoses the skills tech professionals need to improve their careers and also provides courses to develop soft skills such as employability, interview prep, and more. The company has a heavy focus on improving their English fluency, which is a limiting factor that prevents their career growth.
So far, Talently has helped 800 engineers land better jobs at companies such as Paypal, Nubank, and Mercado Libre. And this year, the startup is set to help 4,000-5,000 professionals. According to Doménica, Talently is looking forward to becoming Latin America’s largest talent marketplace.
In this episode, I sat down with Doménica to talk about the experiences that helped her become the entrepreneur she is today. She shares how families in Latin America can improve their economy with education, and her experience pivoting her startup.
Doménica’s path across private, nonprofit, and public sectors
Doménica fell in love with startups while in university but took a different path. She worked at the Ministry of Education and then joined a friend to start an educational-focused NGO. She spent three years leading a team of 50 volunteers, as they taught digital skills to school teachers. Doménica decided to move on after realizing that working in the public sector and in an NGO didn’t fit her fast-paced personality and hunger for impact.
Learn more about why Doménica chose to become an entrepreneur in the Edtech industry in this Crossing Borders episode.
A startup as a vehicle to deliver outsized impact
Andi, an English learning platform, was Doménica’s first startup. However, when she found that most of Andi’s customers were trying to improve their English in order to get international positions and that half of them were software developers, she decided Andi would pivot into Talently, a platform that could take advantage of the tech boom in Latin America. In just 8 hours after launch, Talently received 100 applications.
Listen to this Crossing Borders episode to understand how Doménica’s primary goal was to build a product that created the most impact.
Developing skills in tech professionals to upgrade their reality
Talently’s participants finish the program earning 2X more on average than before. In many cases, they end up multiplying their earnings up to 10x. This increase in their income causes a huge impact on families and communities of Talently’s graduates. Sometimes, they earn more money than all of their family combined. Before, Doménica felt that her lack of English proficiency prevented her from achieving professional success. Once she mastered the English language, she found the drive to advance her career as she had always wanted.
Check out this episode of Crossing Borders and learn why Doménica thinks it is essential to build tools for tech professionals to become confident about their careers, so they can change their lives.
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Outline of this episode:
[01:30] - About Talently .
[01:54] - Talently’s value proposition.
[03:27] - Improving the income of tech professionals.
[05:40] - Latin America as a tech talent hub.
[06:41] - Doménica’s background.
[09:53] - The importance of English proficiency.
[11:37] - Pros and cons of working in the public, private and nonprofit sectors.
[15:00] - Lessons learned from past working experiences.
[16:40] - The path to product-market fit.
[19:14] - Pivoting, from Andi to Talently.
[21:27] - A multi-country startup.
[24:32] - Talently’s impact in Latam.
[26:25] - Advice for her younger self.
[27:10] - Doménica’s book recommendations.
[27:45] - What’s next for Talently?
Resources & people mentioned:
Doménica Obando
Talently
Andi
Daniel Undurraga
Cornershop
StartSchool Perú
Edtech program: Israel’s Agency for International Development Cooperation at MFA
Nathan Lustig
Wayra Accelerator
Book The Great CEO Within by Matt Mochary
Daniel Undurraga never thought he would sell even one Latin American company to a company in the US market, but with the recent US$225M acquisition of Cornershop, a grocery-delivery app he has officially sold two startups to US companies. His first startup, Needish, was the basis for Clan Descuento, a Chilean Groupon clone that was acquired by Groupon in 2010. Clandescuento’s acquistion was before most people in Chile had heard of startups!
Daniel is a lifelong entrepreneur with his share of failed projects, but ever since he and his business partner Oskar Hjertonsson found their niche in Latin American e-commerce, they’ve become an example for the whole ecosystem.
I sat down with Daniel on this episode of Crossing Borders to talk about the Latin American startup ecosystem, living and working across borders, and advice for founders who are launching and scaling in Latin America. We also discuss the backstory behind Cornershop’s decision to not raise capital in Chile and their experience raising money from funds across in Latin America.
See yourself as a global company from the start
Daniel Undurraga knows what it takes to scale a company from a small country like Chile to the rest of Latin America. Cornershop launched in Chile and Mexico simultaneously because the founders realized dominating only the Chilean market wouldn’t create a company with scale. Rather than consolidating in their first market, then expanding, Cornershop took a global approach from the first day by creating processes that were “multi-currency, multi-language, and multi-time zone.”
For startups just starting to consider scaling, Undurraga suggests incorporating outside your home country, such as in the US, UK or Cayman Islands. It can make expanding easier, plus make you act like a global startup from the beginning. Check out the rest of Daniel’s tips for scaling in the Latin American market in this episode of Crossing Borders.
You haven’t sold the company until you sell the company
Having already closed an acquisition from Groupon in 20010, Daniel knew how complicated selling Cornershop could be. The whole process took almost a year and they couldn’t tell anyone about what was happening until they closed the deal.
Find out how Daniel handled the Cornershop acquisition, and why the team continues to operate independently, in the rest of this episode.
Why didn’t Cornershop have any Chilean investment?
Both Cornershop founders took to Twitter after the exit to discuss the role of Latin American funds in supporting Cornershop. In particular, many people speculated why Chilean VCs hadn’t invested; their only Latin American VC investor was Mexican firm ALLVP. To learn more about ALLVP, you can listen to my recent podcast with the fund’s cofounder, Federico Antoni.
Daniel’s explanation for the lack of Chilean investment is one that we discuss frequently at Magma Partners. Between timing, CORFO restrictions and mandate, most Chilean funds would not have been able to get into the deal. However, Cornershop’s and Clan Descuento’s first angel investors were the founders’ Chilean friends and family. Learn more about how Cornershop’s founders have handled this debate since the acquisition in this episode of Crossing Borders.
Show Notes:
[1:21] – Nathan introduces Daniel Undurraga
[2:02] – Inside the acquisition process
[5:07] – How has living in different places influenced your life?
[6:06] – What do you see in the Chilean ecosystem now?
[9:14] – Did you always know you wanted to be an entrepreneur?
[12:00] – What was it like trying to raise money in 2007 in Chile?
[14:12] – The background on Needish
[21:02] – Why did you decide to go to San Francisco?
[24:58] – VCs in LatAm or US?
[26:22] – What was your experience with Chilean funds?
[28:00] – Advice for founders on raising money
[29:50] – How can copycat companies be successful in LatAm?
[31:00] – Why launch in two countries at once?
[32:40] – Stay in one country or target the region?
[34:15] – When did you know the company would succeed?
[36:00] – If you could make one change to the LatAm ecosystem, what would it be?
[38:10] – What’s next for you and Cornershop?
[39:15] – Daniels advice to his younger self
Resources:
Clan Descuento
Needish
Cornershop
ALLVP
My podcast with Federico Antoni
Why Magma Loves Corfo
Latin America’s Groupon Mafia
Luis Rubén Chávez, co-founder and CEO of Zenfi, is changing the way people in Mexico think about financial health. Zenfi is a complete digital finance platform focused on lending that strives for the financial health of its customers. With more than 2.5 million users, the platform provides customers with tools to build a consistent long-term financial plan.
Zenfi offers an app that reviews clients’ credit bureaus for free. They provide personalized diagnostics, tips to improve the customer’s profile, and identity theft alerts. Also, Zenfi helps those who need a personal loan, debt consolidation, or car insurance by reviewing their information and recommending products according to their needs.
Before starting Zenfi, Luis Rubén worked in finance for eight years. He witnessed first-hand its inefficiencies, high concentration, and sometimes abusive practices that don’t help the user in the longer term. Banks offer 60+ products and services but execute poorly a large percentage of them, and fintechs are filling this gap in the market. With the new fintechs that are emerging, Luis Rubén thinks Mexico will have in 5 years a completely different financial system.
Listen to this episode to hear how Luis Rubén is raising awareness about the inefficient lending system in Mexico, what Zenfi is doing to provide a healthier alternative for people, and how the company is expanding its services by offering a marketplace of financial products.
Diversifying the financial system in Mexico
Banks own the credit bureau in Mexico, which reports only negative credit ratings of individuals. The five largest banks in Mexico hold 80-85% of the country’s consumer portfolio, and this high concentration means there is little to no competition. Many financial institutions have conflicts of interest and few incentives to build better data and technological products and services.
Mexicans perceive credit scores as a black box, filled with misconceptions that lead them to make adverse choices. Luis Rubén was part of the problem working within the financial system, but in this episode of Crossing Borders, he explains how he is now part of the solution.
Demystifying credit scores for Mexico’s population
Zenfi’s most attractive product is its free credit score check. The company analyzes the customer’s information and provides them with a complete and user-friendly diagnosis. Also, it gives useful and detailed information such as the impact that each variable has on the score, and parameters to understand your strengths and weaknesses to see what you have to improve. The company has nailed a feature that millions of Mexicans need in an inefficient system that has few incentives to help them maintain a good credit score.
Listen to this Crossing Borders episode to learn how Zenfi will continue to attract millions of users to its platform.
A marketplace for financial products
Users needed a bigger picture for making a long-term personal finance plan, so Zenfi started offering a marketplace where fintechs sell, for example, their mortgage, insurance, and credit card products. Zenfi’s marketplace shows the best financial products that their users can have access to. Zenfi’s lending criteria sometimes cannot give users a loan, so the company refers them to another fintech where they might have a product that serves them.
Check out this episode of Crossing Borders to understand how Zenfi is taking a hybrid approach by offering its products and a marketplace with the best fintechs in Mexico.
Outline of this episode:
[01:09] - About Zenfi
[02:10] - Zenfi’s credit scores
[03:22] - Misconceptions and inefficiencies of the credit scoring system
[05:20] - Zenfi in numbers
[08:47] - Luis Rubén’s background
[11:10] - Why is the traditional financial system stalled?
[15:30] - Zenfi’s fintech marketplace
[19:31] - The fintech ecosystem in Mexico in the last 5 years
[25:10] - Reading recommendations
[28:01] - Advice for a younger Luis Rubén
[31:45] - The future of Zenfi
Resources & People mentioned:
Luis Rubén Chávez
Nathan Lustig
Zenfi
Book The Everything Store: Jeff Bezos and the Age of Amazon
Blog by Paul Graham
Originally from the US, Sophia Wood is a political scientist turned tech entrepreneur, ghost writer, VC, and now leads a tourism company dedicated to boosting conservation in emerging markets as CEO of Friends of Wallacea.
Sophia’s journey from the US to Africa to Latin America shows what a determined, smart, principled person can do across multiple industries very quickly.
Listen to this episode to hear how Sophia decided to start a company in Latin America, how she broke into VC, what she learned while working with Magma and how she uses it today to lead a high impact conservation company.
Sophia’s leap into Latin America’s startup ecosystem
While Sophia was in university, she decided to spend a year studying abroad in Santiago, Chile, which is where her Latin American journey began. After a failed attempt to create and sustain a startup as 21 years old, and working with Operation Wallacea in Fiji and Ecuador, she took a job at Magma Partners as a part time content writer.
What started as a short term project turned into cofounding Latamlist.com, joining the Magma investment team and making investment decisions and helping early stage Latin American startups. m. As a writer, she learned why content and writing is important for starutps, how to communicate the “why” of a tech startup and more.
Check out this episode of Crossing Borders to learn about how Sophia became more comfortable taking risks after starting a startup and during her time at Magma
Why creating accessible and useful content is key for a startup’s growth
Sophia believes that its critical for startups to create content to help them expand and get their message across. After writing for me, Magma, Latamlist and other startups, Sophia shares her recommendations for successful writing. Articles about tech startups tend to be overly technical and sometimes wordy, and Sophia recommends taking a different approach. Instead, startups should communicate directly and share only the important, interesting parts of the story. Startups should ask themselves: why might people come to my website? What problem is my startup trying to solve? What can I teach people who read my articles? What do they care about?
Founders should consistently publish content because it is key when creating organic thought leadership in an area, and writers can work alongside a startup’s CEO or other experts to push content forward.
Listen to this episode of Crossing Borders to understand why Sophia believes good content can help make customers trust you.
Indigenous communities at the forefront of conservation
After working with Magma, Sophia decided she needed to make an even bigger impact by working in conservation. Indigenous communities are protecting up to 80% of the world’s remaining biodiversity, but are rarely provided with the resources they need to do so. The companies and organizations that do have resources sometimes apply conservation practices that do more harm than good. Sophia gives as an example the efforts of reforestation, where in many cases it is done with non-native species that do nothing to benefit the land.
With a focus on providing resources to communities that know best how to conserve their own land, Friends of Wallacea boosts local incomes by offering novel wildlife tours.
Learn more about how Friends of Wallacea partners with local communities for conservation that has a long-term impact.
Outline of this episode:
[02:21] - Sophia’s work at Friends of Wallacea.
[03:23] - Responsible conservation of wildlife.
[06:40] - Sophia’s background.
[10:15] - Lessons learned on creating a startup at 21
[11:52] - Journey with Magma Partners.
[16:18] - Sophia’s writing process.
[20:41] - The importance of good content.
[25:25] - Accessible communication about the startup world
[26:27] - Creating organic thought leadership.
[32:49] - Top lessons learned with Magma Partners and Latamlist
Resources & people mentioned:
Sophia Wood
Nathan Lustig
Magma Partners
Friends of Wallacea
From a young age, Daniel knew he wanted to create something new, but he didn’t know exactly what it would be. His curiosity and drive led him to always have several side businesses, even as a teen when he started a (painful!) business raising bees and honey. Daniel pushed himself to try new projects, which helped him deal with adversity when starting Local Adventures, a travel startup that not only survived, but grew during the pandemic.
7 out of 10 Latin Americans don’t travel internationally. Daniel saw this reality and he wanted to fix it. With LocalAdventures he opened up the international travel market for Latin Americans by improving the booking experience and financing instruments available.
LocalAdventures is a startup that connects travelers with local elite adventure athletes to provide once-in-a-lifetime experiences around the world. It was not that people in Latin America did not care about going on adventures in other parts of the world, it was that they weren’t able to. LocalAdventures is looking to help people to travel for the first time outside of Latin America.
In this episode, I sat down with Daniel to go through the LocalAdventures story. We discussed Daniel’s rise from couchsurfing in Dallas when creating LocalAdventures , to building a company that against all odds grew 80% during the pandemic. Daniel also shared how the challenges that he and the co-founders faced at the beginning taught them to get used to working with scarce resources, and we also discussed how LocalAdventures was able to grow by focusing on what clients really needed: flexibility.
From couchsurfing in Dallas to a profitable business
When Daniel left his corporate job to create LocalAdventures, he decided to participate in an accelerator in Dallas, Texas. Daniel and his co-founders decided to invest 100% of the stipend for living expenses into the business, which led them to couchsurf in a living room, and eating many meals at networking events that had free food. They survived each month with a budget of a couple thousand dollars. This story reminded me of the interview I did with Frete’s founder Federico Vega back in 2017, where he told his story of getting his startup off the ground.
Find out more about the origins of LocalAdventures in this episode of Crossing Borders.
Finding opportunity where others see disaster
When LocalAdventures was finally taking off, growing 3X per year, and then Covid hit. LocalAdventures’ biggest problem, after getting over the initial shock, was trying to figure out how long the pandemic would last, while managing cash.
While other travel companies shut down or laid off staff, Daniel and his co-founders decided to keep on doing business normally. Instead of cutting back on expenses, they talked with consumers and listened to their feedback. LocalAdventures found out that there was still a small percentage of people who were eager to book trips with the risk of having it canceled, if they could in turn get a better price for it.
By offering flexible packages and financial instruments to help people book trips with zero or little money down, Local was able to grow during the pandemic.
Listen to this episode of Crossing Borders to learn more about how LocalAdventures thrived in the most adverse conditions.
Providing Latin Americans with affordable trips around the world
Travelers in LatAm struggle when booking a trip, and so they end up exploring their own countries. LocalAdventures provides a more accessible experience, allowing the traveler to book a trip abroad with as low as 10% of the cost, and pay it in several months, even with no credit card and with a flexibility to change dates.
In this episode of Crossing Borders, Daniel talks more about what makes LocalAdventures’ product so unique and compelling to the Latin American market.
Outline of the episode:
[01:24] - About LocalAdventures
[02:01] - What is the unique solution that LocalAdventures offers?
[04:25] - Daniel’s background
[06:25] - Starting LocalAdventures
[08:39] - Couchsurfing in Dallas
[11:36] - LocalAdventures’ transition through the pandemic
[14:36] - How LocalAdventures grew during the pandemic
[16:07] - Products that LocalAdventures offers to travelers
[18:25] - Building a sales-focused organization
[20:40] - Advice for entrepreneurs who are just getting started
[22:26] - Daniel’s book recommendations
[23:26] - Advice to Daniel’s younger self
[25:05] - The future of LocalAdventures
Resources & people mentioned:
Daniel Peña
Nathan Lustig
LocalAdventures
Federico Vega
Books:
Why Startups Fail
The Hard Thing About Hard Things
Hatching Twitter
Miguel Medina has been an entrepreneur for as long as he can remember. From selling backpacks at traffic lights to doing magic tricks at bars and selling candy to his classmates to earn extra money, Miguel is a pure entrepreneur.
So when his travel startup Isibit was torpedoed by the pandemic, he decided to solve a big Latin American problem: improving the lives of the region's employees and team members.
At least 23 million people transitioned to remote work during the Covid-19 pandemic in Latin America. Miguel is improving employees’ well-being via a product specially designed to fit the growing remote working teams: a benefits management platform that allows companies to give virtual cards to their employees loaded with money for specific purposes.
After working in huge companies such as Apple and Danone, Miguel shifted his career to begin working at Rappi, launching this startup in more than 25 cities in Latin America. He then decided to leave once again his comfort zone and found his own startup, Isibit, a company that through the pandemic transitioned to Plerk.
In this episode, I sat down with Miguel to chat about what Plerk is doing to improve the quality of life for Latin America’s workforce, and about how he decided to lean on his safety net to pivot Isibit and create a new startup when difficulties arose. Also, Miguel shared with us his story as a teenager magician and salesman, and how those experiences shaped him into the entrepreneur he is today.
From magician to second-time entrepreneur
Although the young Miguel was not planning on being an entrepreneur, his life experience led him down the entrepreneurial path. He sold candies at school, and after taking several jobs since the age of 14, worked as a magician at bars and restaurants. Being a magician, Miguel was forced to play character roles that were nothing like his introverted “normal” self. Soon enough, he realized that he could fake a more extroverted personality until he was comfortable with talking to more people and being more outgoing.
Since then, Miguel not only worked for some of the largest companies in the world, but also built an extensive community and network of people in Latin America he could lean on when times were rough. As Miguel explained, “magic only happens when you jump from a cliff.”
Find out more about his journey through job and life experiences in this episode of Crossing Borders.
Transitioning from Isibit to Plerk during a global pandemic
After working as Regional Manager at Rappi, Miguel decided to start his own startup, Isibit, in October 2019. Isibit was an all-in-one platform for business travel, an idea that sounded promising, but was torpedoed by the pandemic.. Although Isibit was accepted into the YCombinator Summer 2020 batch, the startup was doomed.
In this episode of Crossing Borders, Miguel talks more about how important it is as an entrepreneur to count on a network of people, a community that can help you endure hard times and his process pivoting from Isibit to Plerk
Replacing paper vouchers with virtual cards
Before Plerk, companies gave employees benefits via paper vouchers to use for transportation or at restaurant venues. These vouchers created a problem that the gift card industry also has: “floating” unspent money, and that still constitutes an expense for the companies.
Learn how Antonio Martínez, Miguel Medina and Angel Arias launched Plerk’s virtual debit card to give employees personalized perks and benefits worldwide. Companies deposit money on the cards, which the employees spend according to their company’s benefits program rules. After launching in January 2021, already in July 2021 Plerk announced that it had raised $1M in Pre-Seed funding from Y Combinator, Magma Partners, 500 Startups and more.
Learn more about Plerk’s project in this Crossing Borders episode and about how it was born in the midst of the Covid-19 pandemic.
Outline of this episode:
[00:34] - About Plerk
[03:10] - Miguel’s background
[04:55] - Work experience before being an entrepreneur
[07:30] - Launching Rappi in Latin American cities
[09:20] - Turning point of Miguel’s coming of age
[11:05] - Biggest lessons learned at Rappi
[12:10] - Making his own path
[14:20] - The origins of Plerk
[16:40] - Overcoming obstacles in entrepreneurship
[18:55] - Creating an ecosystem with Plerk
[21:23] - How fintechs are disrupting the industry
[22:40] - Miguel’s recommendations
[23:10] - Advice to younger self
[23:40] - Next years for Plerk
Resources and people mentioned:
Miguel Medina
Nathan Lustig
Antonio Martínez
Angel Arias
Plerk
Isibit
Rappi
Danone
Apple
YCombinator
Magma Partners
500 Startups
Book How to win friends and influence people
For this week’s episode of Crossing Borders, we’re revisiting one of our greatest hits episodes featuring Ben & Frank’s co-founder Mariana Castillo.
Mariana Castillo believes that the eyewear shopping experience in Mexico is broken. It’s generally reduced to an impersonal exchange that only considers the basic optical measurements, rather than catering the product to the customer’s style and personality.
Mariana is the co-founder and co-CEO of Ben & Frank, a direct-to-consumer eyewear brand that seeks to transform the way Mexicans buy eyewear by providing fashionable and affordable options.
I sat down with Mariana to talk about why an internship at ALLVP played a key role in her decision to become an entrepreneur, the lessons she learned from working at Mexico’s Central Bank, and the insights she’s gained about the direct-to-consumer category in Latam; from building a brand to fundraising. And lastly, Mariana shares advice on how to remove biases in the ecosystem to empower female founders.
A career-defining moment at ALLVP
Before discovering her entrepreneurial journey, Mariana immersed herself in the investment world. She learned about venture capital and realized that she wanted to get involved with early-stage investment and started an internship at ALLVP, a VC firm based in Mexico City, for three months. Fascinated by the ability of some of the startups she worked with to execute ideas quickly, Mariana decided she wanted to pursue a career that would involve entrepreneurship in any way.
Listen to this episode of Crossing Borders to learn more about Mariana’s lessons learned from her early days at Mexico’s Central Bank to her time at ALLVP.
Redefining what it means to be a “four-eyes”
Through Ben & Frank, Mariana has built a strong eyewear brand. She explains that consistency is key to building a successful brand in Mexico. That means that everything related to the brand reflects the same values, mission, and vision. From the unboxing experience to how a company reacts when they’ve made a mistake are all part of what makes a brand. At Ben & Frank, Mariana explains that they are very intentional about the language they use. For example, they’ve chosen to reclaim what it means to be a “four-eyes”.
Learn more about building a successful brand in this episode of Crossing Borders.
The untapped potential of direct-to-consumer companies in Latam
Mariana explains that direct-to-consumer brands caught on quickly in Mexico. Customer centricity is what traditional retailers in Mexico lack, and what direct-to-consumer brands excel at providing. As consumer habits change from generation to generation, companies will need to adapt to the demands of customers that are more conscious about the value for money and what a brand stands for.
Check out this episode of Crossing Borders to learn more about the opportunities and the barriers that exist in the retail industry in Mexico.
Mariana Castillo is transforming the meaning of “four eyes” in Mexico to be synonymous with cool and fashionable with Ben & Frank. The startup is breaking the barriers of the traditional retail industry and unleashing the potential of direct-to-consumer brands for the digital age.
Outline of this episode:
[1:37] – About Ben & Frank
[2:06] – Traditional retail experience for eyewear in Mexico
[3:23] – Mexican roots, nomadic upbringing
[5:05] – Entrepreneurial journey
[6:00] – Internship at ALLVP
[6:55] – Lessons learned at the Central Bank and ALLVP
[7:55] – Why tackle this specific problem?
[9:04] – Ben & Frank’s inflection point
[11:48] – Building a brand in Mexico
[13:15] – Insights into Latam’s direct-to-consumer category
[14:20] – Competing with traditional retailers
[17:25] – Expanding Mexican direct-to-consumer brands
[18:15] – Advice to Mariana’s younger self
[18:41] – Fundraising for a direct-to-consumer startup
[23:18] – Being a female founder in Latam
[26:35] – Avoiding biases in the VC ecosystem
[29:07] – What’s next for Mariana and Ben & Frank?
Resources & people mentioned:
Mariana Castillo
Ben & Frank
ALLVP
Federico Antoni
Fernando Lelo de Larrea
YCombinator
Santiago Aparicio, Ontop: Transforming the future of work, Ep 158
The future of work is going to be remote and decentralized, according to Santiago Aparicio, Co-Founder and CEO of Ontop, a payroll software startup that allows companies to legally hire and pay anyone in the world. Santiago is a serial entrepreneur and sales passionate who believes in the influence of developing markets in defining the future of work.
After long nights working on Excel sheets back in his banking days, Santiago decided he wanted a change. He reached out to Felipe Villamarin, co-founder at Rappi, and joined the team as its seventh employee, which really helped him to become an entrepreneur.
I sat down with Santiago to talk about his experience as an entrepreneur, while Santiago shared the story of Ontop and their meteoric growth in their first fifteen months (actively operating in over 190 countries, transacting over $2M per month).
Fundraising and starting his first two companies For Santiago, the next frontier as a salesperson was fundraising, which pushed him to build his first company, Fitpal, a fitness and wellness platform for gyms in Latin America. But after Covid hit, Santiago and his cofounder decided to launch a second company, this time focusing on something becoming increasingly popular: remote working.
Listen to this episode of Crossing Borders to learn how Ontop raised its initial money from founders of all over the region.
Building a sales engine for high growth Santiago shares why the best salespeople are the ones that focus on the input instead of the output, and how finding the most predictable metrics in the sales funnel are the first steps to create a replicable process that allows a company to grow internationally.
Find out about Santiago’s advice on productizing a sales engine, how to hit network effect, and why you should focus on building something small instead of building something huge in this episode of Crossing Borders
Biggest lessons as an entrepreneur Santiago offers advice on being kind, passing the ball to the team and being in constant pursuit of the best talent for Ontop. We also discuss the importance of staying grounded and not letting fame get in the way of creating a product that people will really love.
Check out Santiago’s story in this episode of Crossing Borders and find out why you should exercise kindness and the importance of having uncomfortable conversations within a company.
Outline of this episode:
- [02:18] - About Ontop
- [02:39] - Top line metrics from Ontop
- [02:39] - Santiago’s background
- [04:53] - On joining Rappi
- [07:05] - Launching Fitpal
- [08:48] - Santiago’s biggest lessons
- [13:54] - Coming up with the idea for Ontop
- [14:23] - Fundraising for Ontop
- [17:13] - The crazy world of fundraising
- [18:42] - On building a sales engine
- [19:14] - The best salesman (or woman)
- [21:00] - Predictable metrics
- [23:52] - The big milestones
- [27:33] - Being famous is not being successful
- [28:13] - Advice for a younger Santiago
- [31:06] - How to hit network effects
- [32:48] - The importance of hard conversations
- [34:11] - The future of work
Resources & people mentioned:
- Santiago Aparicio
- Fitpal
- Ontop
- Measure What Matters by John Doerr - Book
- The Hard Thing About Hard Things by Ben Horowitz
Radical Candor: Be a Kick-Ass Boss Without Losing Your Humanity by Kim Scott
Maricel Saenz, Compound Foods: Coffee without Coffee Beans, Ep 157
People continue to experience how global warming can have devastating effects on the world. Crop yields have already started to decline from rising temperatures, changes in rainfall patterns and extreme weather events. Climate change is threatening the future of many foods, and that includes coffee. This threat and her love for coffee inspired Maricel Saenz to launch Compound Foods, a food science company to reinvent coffee.
Originally from Costa Rica, where coffee is ingrained in the national identity, Maricel wanted to dedicate her time and energy to creating solutions fighting climate change. Maricel left her first startup to create a product that could recreate coffee in a sustainable way. Coffee is one of the most consumed products in the world and it comes with a large water footprint. Maricel’s idea for Compound Foods is to replicate the coffee experience with less environmental impact.
In this episode, I sat down with Maricel to talk about Compound Food’s mission in tackling climate change, her career in science without being a scientist, her journey of building a company at the start of the pandemic and the future of the coffee industry.
I hope you enjoy this conversation with Maricel Saenz.
From fighting bacterias to fighting climate change Maricel shares why she left her first startup to start Compound Foods to fight climate change. Maricel’s experience in biotechnology and her longing to impact the world positively were the catalyst to launch Compound Foods and ultimately, what happens on a coffee farm in the lab.
Find out why Maricel decided to follow her passion to tackle climate change in this episode of Crossing Borders. If you want to learn more about Maricel’s backstory, I talked to her in Episode 76 about the battle against drug resistant bacteria and the challenges of raising capital in Silicon Valley as a Latina entrepreneur.
Drawing inspiration from nature Research shows that 50% of the land we grow coffee on today may not be suitable for growing coffee in the future. A big chunk of coffee production could go away over the next few years due to environmental changes, for which Marciel believes we must take action and start producing coffee in an environmentally friendly way. Compound Food’s draws inspiration from nature and relies heavily on the fermentation process to create a product that has the same chemical composition of coffee beans. The microbes play a key role in creating flavors and aromas, and are grown efficiently and in a scalable way.
Check out this episode to learn more about why Maricel wants to make coffee without coffee beans!
Changing the mindset around climate change Maricel conveys an empowering message to go from climate anxiety to taking action. We can still do something significant about climate change and the environment. Technologies and companies are being built around climate change and people have the power to make big changes through simple choices, like buying a product that has less of an environmental impact.
Listen to the rest of this episode to hear Maricel on changing the mindset and the advice she would give to her younger self.
Coffee is one of the most consumed products on the planet and the way we produce it today has a high environmental impact. Solving this global problem is not easy and needs all hands on the (coffee) table. If this resonates with you, Compound Foods is on the lookout for more passionate team members to join the team.
Check out this episode of Crossing Borders to hear Maricel tell her story in her own words and her enthusiasm about creating a climate-resilient future, starting with your morning coffee.
Outline of this episode:
- [01:06] - The backstory of creating coffee without coffee beans
- [02:30] - Why is coffee the perfect target?
- [03:28] - Why does coffee contribute to climate change?
- [04:10] - Why do we need to brew coffee without coffee beans?
- [05:10] - Two minute background on Maricel
- [06:05] - First startup experience
- [06:40] - Singularity University and meeting her first co-founder
- [07:10] - From fighting bacteria to fighting climate change
- [08:03] - Can we do something for climate change now?
- [08:40] - From climate anxiety to taking action
- [09:27] - How to take action fighting climate change
- [12:00] - Opening jobs at Compound Foods
- [13:05] - What does it take to build a company like Compound?
- [14:05] - From Costa Rica to the Bay Area
- [15:33] - Fundraising for a live product
- [16:25] - Thoughts on fundraising
- [17:35] - Why is Compound not a synthetic food company?
- [19:50] - What does the future look like?
- [21:05] - Next steps for Compound
- [22:09] - What advice would you give to yourself when you were first getting into tech?
Resources & people mentioned:
- Sci-Fi Book: Seveneves by Neal Stephenson
- Newsletter: Snaxshot
- Podcast: Crossing Borders
This episode of Crossing Borders is brought to you by AWS Startups.
AWS Startups supports entrepreneurs in Latin America across multiple programs, including Cloud Credits to help startups test features and extend runway, technical support to help optimize AWS solutions and integrations with your product, and – on the business side – help you build strategic contacts with investment funds, accelerators, and corporations to accelerate your growth.
For more information, check out aws.amazon.com/es/campaigns/founders, where you can access $1,350 in AWS credits for your startup.
Juanma Gironella, Guros: Reshaping The Latin American Insurance Industry, Ep 156
The traditional insurance experience in Latin America is an inefficient, non tech process. Most people don’t want to buy it but know they have to. At the same time, customer expectations of instant digital transactions sustained seamlessly across digital channels are increasingly the norm. This is exactly what Juanma Gironella is providing with Guros, the operating system for insurance in Latin America.
After working in financial services consulting, Juanma decided to build digital tools to help bring the insurance industry into the digital age.
In this episode, I sat down with Juanma to discuss how Guros is making inroads into the insurance industry and gaining market share with a digital model that is democratizing access to insurance and bringing new opportunities to innovate, improve customer experience, and ultimately, driving growth.
Improving the insurance experience Juanma contrasts the experience of comparing and purchasing auto insurance in Guros as easy as booking a flight or a hotel online. But the innovation opportunities do not stop there: on top of offering a better buying experience, what sets Guros apart is the fact that they provide value to the customers after purchase with new products, like a wallet that allows users to have multiple insurance products, and an API integration for fintech companies. This integration works like an embedded marketplace, enabling fintech companies to rapidly deploy integration into their app and allowing users to self-serve with a few clicks.
Learn more about how Guros is helping customers and fintech partners in this episode of Crossing Borders.
The insurance opportunity in Mexico and Latin America Guros is building their business model by addressing the pain points customers experience in their relationships with incumbent insurers. Of the $240 billion a year industry in Latin America, no player has over 5% of the market, which reflects that the (poor) value proposition essentially is pretty much the same in the entire region.
Check out this episode of Crossing Borders to learn more about this massive opportunity in Latam and why Guros is already thinking of other verticals.
Fundraising during Covid times Juanma’s first fundraising experience was with Guros during the Covid pandemic. He explains that finding the right partners and bringing in the right people is key to getting the insights that allow things to start happening at a faster pace.
Learn more about Juanma’s fundraising journey with Guros, and how it is to have never met in person over 95% of his team in this episode of Crossing Borders.
In Mexico and other relevant Latin American markets, insurance in general, and especially auto insurance, are radically fragmented markets. Consumers have to go through a painful experience when signing up for and purchasing insurance, and even after purchasing, it's hard to get value from the insurer provider. Guros is leading the change to disrupt innovation in the insurance industry.
Outline of this episode:
- [03:01] - About Guros
- [03:44] - Before and after for insurance retail users
- [08:20] - Doing partnerships with potential partners
- [14:51] - From the idea to real traction
- [18:27] - Insurance opportunities in Mexico and Latin America
- [21:47] - The growth opportunity in the insurance industry
- [25:00] - The fundraising experience during the pandemic
- [28:20] - Resources and recommendations
- [29:49] - Advice to Juanma’s younger self
Resources & people mentioned:
- Juanma Gironella
- Guros
- Growth Series by Reforge
- Training courses at ConversionXL
- First Round Review
- Mexico Investment %of GDP
- "Our greatest weakness lies in giving up. The most certain way to succeed is always to try just one more time." ― Thomas Alva Edison
- “What the mind can conceive and believe, and the heart desire, you can achieve.” ― Norman Vincent Peale
This episode of Crossing Borders is brought to you by AWS Startups.
AWS Startups supports entrepreneurs in Latin America across multiple programs, including Cloud Credits to help startups test features and extend runway, technical support to help optimize AWS solutions and integrations with your product, and – on the business side – help you build strategic contacts with investment funds, accelerators, and corporations to accelerate your growth. For more information, check out aws.amazon.com/es/campaigns/founders, where you can access $1,350 in AWS credits for your startup.
Caterine Castillo, Neivor: Streamlining real estate administration in Latin America, Ep 153
In Latin America, a building manager typically has to handle thousands of apartment units and tenants. This means simultaneously dealing with building maintenance, reconciling payments, and meeting tenant and landlord requests. Currently, this is done manually with pen and paper, maybe an Excel spreadsheet or through WhatsApp which leads to inefficiencies and unhappy residents.
Caterine Castillo, Neivor’s co-founder and CEO, is trying to make living in Latin America’s apartment buildings and condos better. Neivor is a vertical SaaS platform that simplifies condo fee collections and streamlines management and communication between residents, property owners, and building managers. Neivor processes tens of millions of payments per month and help manage 3000+ apartment buildings in Mexico, Colombia, and Ecuador.
I sat down with Caterine to talk about the pain points of property management in Latin America and the differences in Neivor’s reception between the Colombian and Mexican markets. We also talk about her experience in finance before becoming a founder and what it was like fundraising for the first time.
Growing Neivor’s team One of the biggest lessons Caterine learned from working at corporations was managing large teams. These skills are extremely critical in Neivor’s roadmap with a team that is currently growing from 18 employees to 75 in under a year. Caterine also explained that hiring won’t solve a company’s problems immediately. It’s important to understand that people are managing a big learning curve when they join a new team.
Listen to this episode of Crossing Borders to learn more about Caterine’s main takeaways from her experience working in corporations.
The importance of connections in VC Caterine’s first fundraising experience was with Neivor. She explains that having a great solution and an underserved market with low-hanging fruit sometimes isn’t enough. Having the right connections is key. She had connections in the corporate world, but not in the VC world. Besides funding, Caterine considers that those first warm introductions are game-changers for any entrepreneur that is new to the space.
Learn more about Caterine’s fundraising journey with Neivor and the connections that were key to their growth in this episode of Crossing Borders.
Property management: Colombia versus Mexico Expanding to a new market in another country involves a lot of risks. Consulting with others who have done it before can be really helpful. However, there’s so much more insight that can be gained from being on the ground and talking to clients before making a decision to expand. During her time in Mexico, Caterine discovered that their target market was much more receptive to Neivor’s product, requiring a different marketing approach than in Colombia.
Check out this episode of Crossing Borders to learn more about the differences between the Colombian and Mexican property management markets.
Caterine Castillo brings her expertise in business development, sales, marketing to propel Neivor’s solution forward in Latin America. Her innate passion for team building and creating solutions that disrupt the market will be key to Neivor’s success.
Outline of this episode:
- [2:34] - About Neivor
- [5:20] - Dealing with fraud
- [6:35] - Where Neivor operates
- [7:02] - Becoming an entrepreneur
- [8:20] - From fintech to founder
- [9:14] - Biggest lessons learned in fintech
- [10:24] - Growing Neivor’s team
- [13:40] - Fundraising process
- [15:30] - Jumping to Mexico
- [18:00] - How to sell in Mexico
- [20:27] - Books, blogs, and podcast recommendations
- [21:20] - Caterine’s advice to her younger self
- [22:09] - What’s next for Neivor?
Resources & people mentioned:
- Caterine Castillo
- Neivor
- Books: The Hard Thing About Hard Things, Lean In
Gonzalo Blanco, Quansa: Building the future of financial health in Latin America, Ep 152
For years, Gonzalo Blanco and Mafalda Barros have seen how the misaligned incentives in Latin American financial products push the average person to make bad financial decisions. Due to this lack of guidance, people improvise and spend money without realizing the impact that their decisions have on their financial health.
This frustration with the lack of financial education led them to found Quansa, a corporate benefits platform focused on employee financial wellbeing. We invested in Quansa’s last round and are excited to support them on their mission to promote employee financial health throughout the region.
In this episode, I sat down with Gonzalo to talk about why the incentives in Latin American financial products are broken and how Quansa aims to change that. Gonzalo also shares his lessons learned from working in the corporate world, participating in Pear.vc’s accelerator, and going through the fundraising process in the US and Latin America.
Pushing for employee financial health with no hidden agenda Latin Americans historically don’t trust financial institutions. Banks and financial institutions push products on their clients, and many make bad decisions. However, through Quansa’s digital diagnostic and personal financial coach, clients have transparency and can easily understand the impact of their decisions.
Learn more about how employees can incorporate healthy financial habits with Quansa in this episode of Crossing Borders.
Transitioning from 10 years in the corporate world Gonzalo explains that there is no perfect recipe for a person’s decision to transition from the corporate world into entrepreneurship. For him, it was a matter of understanding the opportunities that would be available to him if he decided to continue working for a corporation. It was important for him to learn about company processes from larger organizations that had perfected them over time, but for the next step in his career, he wanted to be able to work with more speed and fewer limitations.
Listen to this episode of Crossing Borders to learn more about the lessons Gonzalo learned from working for a corporation.
From Stanford’s GSB to the Pear Accelerator 2020 The idea for Quansa originated in Stanford’s Graduate School of Business when Gonzalo was taking a class called Startup Garage, part of his Master’s program. Gonzalo and Mafalda were focusing on solving for financial health in Latin America. At that moment, they met Mar Hershenson from Pear VC who invited them to participate in Pear’s Accelerator. It opened a world of opportunities for them.
Check out this episode of Crossing Borders to learn more about how they attracted investors from the US and Latin America.
Gonzalo Blanco is providing a financial solution to the Latin American market that has employees’ best interests in mind with Quansa. With Mafalda, they are striving to change the way Latin Americans spend their money, putting their financial wellbeing first.
Outline of this episode:
- [1:46] - About Quansa
- [4:55] - The entrepreneurial ‘itch’
- [6:15] - Transition from the corporate world
- [10:26] - On meeting his co-founder
- [12:47] - Misaligned incentives in financial solutions
- [24:30] - Quansa’s fundraising process
- [28:00] - Advice to Gonzalo’s younger self
- [29:49] - Books, blogs, and podcast recommendations
- [31:20] - What’s next for Quansa?
- [33:00] - Magma Partners and Quansa
Resources & people mentioned:
- Gonzalo Blanco
- Mafalda Barros
- Quansa
- Startup Garage
- Pear Accelerator
- Farnam Street
- Naval
- Startup School
- Magma Partners
- Francisco Saenz
Greatest Hits Episode: Marta Forero, Driving Economic Growth in Latin America via Corporate Education with UBits, Ep 149
For this week’s episode of Crossing Borders, we’re revisiting one of our greatest hits episodes featuring UBits’ Marta Forero.
As the only Latin American woman in her Y Combinator cohort, Marta Forero is helping break the mold for women in the tech industry. From a young age, she knew she wanted to make an impact on the world. After university, she took a high-paying job, which she then left to start a business of her own, combining her passion for education for transformative growth with a love of technology to create an online university.
The result was UBits, a corporate online learning platform headquartered in Bogota, that Marta co-founded with Julián Melo. UBits, which also operates in Mexico and Peru, focuses on training based on bits– small training units created by industry experts…hence The University of Bits or UBits. UBits offers corporate training in Spanish in Business, Finances, Soft Skills, and Software Skills, and is a first-mover in the space.
In this episode, Marta explains what it’s like to be a female entrepreneur in Latin America, provides tips on how to apply for YCombinator and make the most out of the experience, as well as why she and her team chose to bootstrap UBits for four years before raising money. She shares one of the more unique stories of how she met her cofounder: at a bookstore.
Check out the rest of this episode to hear how Marta took UBits from Colombia to YC, and then across Latin America.
Wise Words From Dad Most entrepreneurs, especially those from Latin America, get actively discouraged by family members when they decide to leave a stable job to follow their dreams to start a business. However, Marta’s Dad breaks this archetype and actually encouraged her to take the risk and launch her own university. He also has other pieces of useful advice for struggling entrepreneurs, and we should probably have him on the podcast someday!
Listen to my interview with Marta to find out how her dad encouraged her to start her business, and what other entrepreneurs can learn from his advice.
A Chance Encounter at a Bookstore Marta didn’t choose Julian as a cofounder. A book did. They ran into each other during a shared quest for a book in Bogota in 2013 and soon realized their passions for education were well-aligned. In this episode, Marta explains how she and Julian became business partners and eventually decided to work on UBits together, all after meeting in a bookstore.
Check out this episode of Crossing Borders to learn about Marta’s experience choosing a co-founder, and how to find a good match while building a business.
Tips on preparing for a YCombinator interview After participating in YCombinator and raising $2M from investors by Demo Day, Marta is a great resource to Latin American entrepreneurs looking to approach YC. She suggests that all Latin American YC candidates learn certain financial and startup terms in English before taking the flight to Silicon Valley.
Listen to the rest of this episode to hear Marta’s advice for learning cultural communication tools to help Latin American entrepreneurs master the Y Combinator interview.
Empowering Women in Tech Being a Latin American woman in the tech industry can potentially create barriers when seeking funding from investors. In this episode, Marta discusses the pressure she felt as a female entrepreneur when she applied for YCombinator. With this in mind, she hopes to encourage and inspire younger women to challenge the paradigm and take advantage of the opportunities in tech.
Check out this episode to hear how Marta plans to bring more women into tech and entrepreneurship in LatAm.
Marta Forero and UBits were already unique for being one of very few Latin American companies to reach Y Combinator. As a female founder, she is a part of an even smaller minority of Latin American women to participate in the accelerator program. Her inspiring story of empowering Latin American workers through online education brought her from Colombia to Silicon Valley, then back to Peru and Mexico where UBits continues to expand.
Check out this episode of Crossing Borders to hear Marta tell her story in her own words.
Outline of this episode:
- [2:44] – What is UBits?
- [3:09] – Courses the platform offers
- [4:00] – How did you decide on UBits?
- [5:26] – Why Marta decided to build a company
- [7:18] – The benefits of a supportive dad
- [9:32] – First steps in founding UBits.
- [11:32] – How did you meet your co-founder?
- [13:33] – On getting their first client
- [15:40] – Decision to focus exclusively on online courses.
- [16:52] – Toward a scalable business model
- [18:22] – When did you decide to start raising money for the business?
- [18:35] – Bootstrapping in Latin America.
- [19:40] – Applying for Y Combinator
- [23:20] -Tips for a Y Combinator interview.
- [25:18] – How did you practice putting everything into 15-second responses?
- [26:20] – Going to the US with a strategic plan and not feeling shame.
- [29:24] – How to make the most of YC
- [31:23] – Raising an investment round after Y Combinator.
- [33:05] – Advice to other Latin American founders trying to raise in the US.
- [35:10] – Being a female founder in Latin America.
- [36:40] – How the ecosystem can improve on being more gender-inclusive.
- [38:20] – Advice for women looking to raise money in the US and expand their business.
- [40:46] – Marta’s top resources for entrepreneurs
- [41:47] – What’s next for you and UBits?
Resources mentioned:
- Marta Forero
- Julian Melo
- UBits
- Gamestorming by Dave Gray [BOOK]
- Y Combinator
- Lynda
“Titanes” / “Tools of Titans” by Tim Ferriss
Maribel Dominguez, Círculo de Belleza: Building a vertical marketplace to supply the professional beauty industry, Ep 150
After graduating from university in the US in 2009 at the height of the financial crisis, Maribel Dominguez decided to move back to her native Mexico until the economy got better. While she was home, Maribel and her dad came up with a business idea. They identified a problem that affects many industries: excess inventory. Together, they decided to found a company that helped corporations sell company’s surplus stock and landed star clients like L’Oreal and United Colors of Benetton.
That company she founded with her dad in 2009 would set the foundation for the eleven-year journey that would lead to Maribel founding Círculo de Belleza, a specialized B2B marketplace that supplies beauty salons and independent hairstylists.
I sat down with Maribel to talk about why the distribution system in the professional beauty market is broken and the enormous opportunity it presents in an industry that is often overlooked.
An alternative to the traditional supplier
Maribel explains that there is a disconnect between big brands and the long tail of hair salons and independent stylists. With Círculo de Belleza, this unattended segment of the market has access to top name brands that they wouldn’t be able to buy elsewhere. In addition to access, these clients can buy products at wholesale pricing and get products delivered anywhere in Mexico.
Learn more about how Círculo de Belleza helps these small businesses overcome the traditional barriers to high-quality products in this episode of Crossing Borders.
A business where everybody wins
Throughout her journey as an entrepreneur, Maribel always had a clear vision of the type of business she wanted to be a part of. For one, she seeks businesses that challenge the status quo while making sure that everyone involved is winning.
Find out how Maribel’s values translated to the way she decided on her business model in this episode of Crossing Borders.
On her decision to raise capital
During Maribel’s first ten years as an entrepreneur, she was bootstrapping her business– taking the returns and reinvesting them into the company. However, she realized that to transform the family-run business into a scalable solution she needed to think bigger, create something new that was scalable, and potentially raise external investment.
Listen to this episode of Crossing Borders to learn more about Maribel’s experience raising money during a pandemic.
Círculo de Belleza is a great opportunity to connect underserved beauty professionals with the beauty products they need to run and grow their business.
Outline of this episode:
- [1:39] - About Círculo de Belleza
- [6:45] - Maribel’s path to entrepreneurship
- [20:00] - Lessons learned from a nonscalable business
- [23:00] - The fundraising process
- [27:09] - Books, blogs, and podcast recommendation
- [30:52] - What’s next for Círculo de Belleza?
Resources & people mentioned:
- Maribel Dominguez
- Círculo de Belleza
- Books: Playing to Win, The Relationship Cure
Greatest Hits Episode: Matías Rivera, Building Businesses and Replanting Patagonian Trees, Ep 149
For this week’s episode of Crossing Borders, we’re revisiting one of our greatest hits episodes featuring Fanatiz’ Matías Rivera.
What do Start-Up Chile, the Copa Libertadores, and Latin America’s largest crowdfunding campaign have in common? The answer is that Chilean entrepreneur and philanthropist, Matias Rivera, had some hand in their development. Matias loves to solve problems he sees at home or abroad. Once he sees a need, he tries to create a simple and effective solution. With that methodology, Matias has founded five ventures, including his most recent startup, Fanatiz, which received investment from investors including Magma Partners. Now based in Miami, Matias has specialized in creating clever solutions in his native Chile and quickly bringing them to a global audience.
I sat down with Matias on this episode of Crossing Borders to talk about his decision to get an MBA at Stanford, his work at Start-Up Chile and in Patagonian conservation, and his advice for startup founders looking for funding from Latin America. We also discuss his views on the Latin American ecosystem, how it’s developed in the past ten years, and how to grow a business from Latin America. Check out the rest of this episode to hear Matias’ story from Chile to Boston, to San Francisco and Miami, and the many startups, NGOs, and initiatives he founded in between.
Problem + pain point + desperate users = opportunity All of Matias’ ventures have a common root: a significant problem affecting people’s lives. Whether it was helping build the startup ecosystem in Chile, reforesting Patagonia, or streaming soccer (fútbol) to expat fans, his solutions focus on targeting an urgent pain point within a niche group of people. However, no matter how great the product, Matias has found the saying, “build it and they will come,” doesn’t quite hold true.
Check out the rest of the episode to learn about Matias’ clever marketing techniques that have helped him build communities across 60 countries and raise one of Latin America’s most successful crowdfunding campaigns.
Angel investment to philanthropy? For a number of reasons, the US far outspends the rest of the world in charity and philanthropic causes. Matias has a few hypotheses; in fact, part of his Latin American philanthropy research is still cited regularly today. Tax incentives have something to do with it, but so does entrepreneurial success, he says. Early investors tend to be ex-entrepreneurs who want to give back. This line of reasoning potentially explains why Latin America has lagged behind the US in both areas.
Listen to this episode of Crossing Borders to hear Matias Rivera explain how philanthropy and angel investment are connected in Latin America, and how this connection affects entrepreneurs. If you are interested in this topic, you can also check out my article on startup investing as impact investing in Latin America.
Knock on all the doors Raising money in Latin America is tough. While seed stage funds have become relatively abundant, Series A rounds and later coming from the region are still rare. Matias has raised capital for several of his five ventures across Chile and the US, including from Magma Partners. He gives one piece of advice that I strongly agree with, which we often give to entrepreneurs through Magma: don’t stop following up with the investors that say no or don’t respond.
While this strategy might sound counter-intuitive, Matias explains how to grow a long-term relationship with a potential investor, even one who has rejected you several times. Most investors will see this connection as a positive if you play it correctly. Listen to Matias describe how to cultivate a strong investor-entrepreneur relationship over time in this episode of Crossing Borders.
Matias Rivera has played a multi-faceted role in building the Chilean startup ecosystem – and in conserving the country’s wildlife. A lifelong entrepreneur, Matias offers advice for how Latin American founders can advocate for themselves, reach the US, and build international communities, no matter where they begin. Check out his story spanning Chile, Harvard, Stanford, Miami, and Torres del Paine National Park, and how he has built five enterprises on this episode of Crossing Borders.
Outline of this episode:
- 2:10 – Nathan introduces Matias
- 3:24 – Why Fanatiz?
- 4:58 – Did you always know you would be an entrepreneur?
- 6:45 – Trying to get students into entrepreneurship in 2008
- 8:35 – Getting involved at Start-Up Chile
- 11:02 – The early days of SUP Chile
- 13:12 – For-profit conservation with Patagonia Sur
- 15:07 – Highlights of projects with Patagonia Sur
- 20:21 – Philanthropy in Latin America
- 22:44 – What role do tax incentives play in philanthropy?
- 25:05 – Angel investment as philanthropy
- 25:40 – The Stanford MBA
- 27:13 – Takeaways from time at Stanford
- 28:22 – How to watch soccer abroad without Fanatiz
- 30:12 – Matias’ marketing tips for entrepreneurs
- 34:18 – What’s next for Fanatiz?
- 35:53 – What’s next for the Latin American ecosystem?
- 38:14 – Advice for US investors looking at LatAm
- 39:04 – Advice for LatAm founders looking to raise
- 42:05 – Matias’ advice to his younger self
Resources & people mentioned:
- Fanatiz
- Jump Chile
- Start-Up Chile
- Patagonia Sur
- Fundacion Reforestemos
- Singularity University
- Russ Roberts’ Econ Talk podcast
- LatamList
Benjamin Labra, Houm: Streamlining the Real Estate industry in Latin America, Ep 148
Latin America’s real estate market is opaque, broken and bureaucratic. The home buying process in the region can take up to a year, and even just renting an apartment requires having another property as collateral in some countries. There are many pain points in the industry that are being unaddressed by the market.
That’s why Benjamin Labra is looking to fix the broken real estate industry in Latin America with Houm, an end-to-end solution helping property owners rent, manage and sell their properties through an online marketplace.
I sat down with Benjamin to talk about how he’s tackling some of the industry’s deepest-rooted problems and streamlining the home buying and renting process in the region. We also discuss his experience at Y Combinator and how to build and maintain company culture once you go remote.
Real estate runs in the family Real estate runs through Benjamin’s veins. He comes from two generations of Chilean real estate developers and was practically raised on construction sites and he always knew he wanted to do something on his own. For four years he managed his own private equity real estate firm and eventually decided to jump into tech.
Learn more about Benjamin’s journey into tech in this episode of Crossing Borders.
Houm: allowing apartment rentals without a cosigner One of the ways in which Houm’s solution is truly revolutionary for the real estate market is that they’ve gotten rid of the cosigner. To mitigate this risk, the proptech guarantees the payment to the landlord even if the tenant doesn’t pay. In doing so, property rentals become much easier and faster to process – and can be done in less than 24 hours, compared to up to 3 weeks without Houm.
Listen to this episode of Crossing Borders to learn more about how Houm tackles the pain points of the real estate industry in Latin America.
The YC stamp of approval Getting accepted into YCombinator can help many early-stage startups. Even though Benjamin and his team knew they were on the right path, the accelerator’s stamp of approval validated their vision.
Learn more about the ways in which participating in YC transformed Houm as well as the perception of US investors in this episode of Crossing Borders.
Benjamin Labra’s extensive experience in the real estate industry makes him one of the best-equipped people to tackle the challenges that property owners and tenants face in Latin America.
Outline of this episode:
- [1:10] - About Houm
- [2:28] - Painpoints of the real estate industry in LatAm
- [4:00] - A family of real estate developers
- [5:32] - On Chilean talent
- [7:33] - Jumping into tech
- [8:35] - Switching from the investment side to running a startup
- [10:05] - Basics of renting a property
- [13:20] - Speeding up the renting process
- [16:17] - A change in US investors’ perception
- [18:52] - Challenges of operating remotely
- [20:28] - Advice to entrepreneurs in smaller LatAm countries
- [21:38] - Proptech boom in LatAm
- [22:30] - Books, blogs, & podcast recommendations
- [23:00] - Advice to Benjamin’s younger self
Resources & people mentioned:
- Benjamin Labra
- Houm
- Book: The Hard Thing About Hard Things
Nico Barawid, Casai: Providing Consistently High-Quality Hospitality in Mexico, Ep 147
In Mexico, the hospitality industry is the third-highest contributor to GDP. Therefore, when COVID-19 initially shut tourists out of the country and forced many hotels to close down, the Mexican economy was hit relatively hard. By the second half of 2020, travel to Mexico was picking up, and the hospitality industry is ready to make a comeback, with some Mexico destinations on pace for more travel than in 2019!
Casai, a luxury hospitality startup, aims to be the high end Airbnb for digital nomads, high end business travelers and families. In this episode of Crossing Borders I sat down with Casai’s founder and CEO Nico Barawid to learn more about his story.
Starting with his first job at a startup in San Francisco and his background in consulting, Nico explains how these experiences prepared him to run Casai efficiently. We also discuss the difficulties Casai faced during the pandemic and Nico explains the ways in which Casai managed to bounce back and the lessons learned along the way.
Learning on someone else’s dime Nico explains that his most valuable learning experience came from working for a startup in San Francisco before starting Casai. As the third hire, Nico worked closely with the founders from the very beginning, allowing him to get the full founder experience without having to take founder risk.
To learn some more of Nico’s tips and lessons learned, listen to this episode of Crossing Borders.
Taking advantage of homegrown talent As soon as Nico moved to Mexico, he noticed that many of the most intelligent and qualified people often left the country to seek opportunities abroad. That meant having to leave their families and their home behind. By building Casai in Mexico, he hopes to retain some of Mexico’s top talent at home in Mexico. This way, his team can build not only a company but also a country that they are proud of.
Hear more about how Nico thinks about building a team in this episode of Crossing Borders.
Bouncing back from COVID-19 The day the WHO declared COVID-19 a global pandemic, Casai had more cancellations than confirmations. As the pandemic advanced, the cancellations kept coming. So, Nico began focusing on the data: who was still coming and why? Taking note of these trends, Casai was able to remain agile and make decisions on a day-to-day basis that ultimately saved the company during the pandemic.
Listen to this episode of Crossing Borders to learn more about the trends Nico and his team discovered during the onset of COVID-19.
In this episode, Nico Barawid explains that, as an entrepreneur, the lows are never as low as you think they are, because every past mistake or tough situation will teach you something useful to prepare you for your next attempt. It is with this mindset that Nico has taken Casai to where it is today, transforming the traveling experience for the next generation of digital nomads.
Outline of this episode:
- [1:42]- Identifying the problem in the hospitality industry
- [4:43]- Standardizing the variability of accomodations
- [7:09]- Who is Nico Barawid?
- [9:23]- What did your consulting and startup background teach you?
- [11:39]- What is the best advice you have for someone starting a startup?
- [13:26]- Picking your startup; what should you look for?
- [15:53]- Why start Casai in Mexico?
- [18:18]- Hiring local talent
- [20:10]- Getting Casai off the ground
- [22:43]- LatAm and US funds; how did you raise capital?
- [26:30]- Growing from the first fund to pre-COVID-19
- [28:40]- Surviving COVID-19 in the hospitality industry
- [33:30]- What advice would you give your San Francisco self?
- [38:14]- What is next for Casai?
Resources & people mentioned:
- Nico Barawid
- Casai
- Headspace
- Book: A Billion Dollar Loser
- HBS cases
Greatest Hits Episode: Daniel Bilbao, Fighting Fraud in Latin America, Ep 146
For this week’s episode of Crossing Borders, we’re revisiting one of our greatest hits episodes featuring Truora’s Daniel Bilbao.
Originally from Cali, Colombia, Daniel studied in the US and started a company in Silicon Valley before realizing he wanted to use his experience to solve a pressing Latin American problem: fraud. Truora, a startup that provides instant background checks, was born to fight that problem.
I sat down with Daniel for this episode to talk about why he decided to go after the Latin American market instead of Silicon Valley, how he raised money from Y Combinator, Accel, and Kaszek Ventures, and why he wants to tackle the problem of fraud in Latin America. We also discuss why he based his company in Cali and the lessons he learned building and working for three startups in Latin America and Silicon Valley.
Magma has been supporting Truora since before YCombinator, so I’m especially excited to share the story of this ambitious founder from Colombia on the podcast.
Why background checks are a big deal in Latin America Background checks are customary practice in the US for reasons of compliance. Background checks are essential in Latin America to avoid fraud and criminal activity. With the rise of the gig economy has come the challenge of hiring and managing massive teams of contract workers; Truora makes it possible to run a background check on new employees in a matter of 30 seconds using a smartphone. Leveraging his team and experience, Daniel pushed Truora to early revenue by doing deals with Rappi, Uber, and Davivienda on a bootstrapped budget.
Truora is not stopping at background checks; Daniel wants to solve the problem of fraud from the ground up. Find out how Daniel plans to grow Truora across Latin America while staying lean in this podcast episode.
If I ever got a tattoo, it would be of my flag Daniel Bilbao used to swim on the Colombian national team, so it would be hard to find someone more patriotic about his own country. Daniel returned to Colombia to build Truora after realizing that Latin Americans are on the cusp of realizing the enormous opportunity that they have to build global companies that compete with the US, Europe, and Asia. He even spends part of his Sundays advising founders from the region.
Daniel is honest about the problems he sees in Latin America, but he quickly repositions them as opportunities. Check out the rest of the podcast to hear how Daniel plans to build a winning team across Latin America with Truora, starting from Cali, Colombia.
We work in the United States of Latin America Latin American markets are more similar than they are different, says Daniel. He contends that they’re closer to Texas and California than people might think. His advice: do multiple geographies, and do it right away. If you feel you are spread too thin, the problem probably lies in the product or the team, rather than the growth plan. In this episode, Daniel explains why he thinks it is better to spend $50K to launch and learn in a new market than to go for huge revenue right away.
Although Truora is still in its early stages, Daniel has seen a number of startups grow, and a number of startups go down in flames. Bipi, a car rental startup where he worked, laid off hundreds of people (including him) before it failed. Find out what Daniel learned from previous startups and how he applied his knowledge to Truora in this episode of Crossing Borders.
If you have a good team and nothing else, apply. You can always apply again. Daniel has been through YCombinator twice, first with Paladin Cyber, then with Truora. Paladin went on to raise $4.5M after YC and other Silicon Valley Investors and Truora recently raised $3M from Kaszek Ventures and Accel. He knows what accelerators and investors look for and is always willing to share his advice. His tip for Latin American founders: learn to tell your story, but go straight to the point. No BS. If you are a returning listener to this podcast, you may remember that Marta Forero (UBits cofounder) gave similar advice about her own experience in the Y Combinator interview.
Daniel is a top resource on how to get into and get the most out of Y Combinator. Listen to the rest of this episode to hear his tips on raising money from top US and Latin American VCs, and how to turn that investment into revenue.
Daniel Bilbao has been fortunate to work closely with top startups in the US and Latin America in times of success (his identical twin was an early Rappi team member) and times of hardship. His only regret was that he didn’t start innovating earlier. Check out Daniel’s story to learn how and why he made his way from doing business in Silicon Valley back to his home country to fight one of Latin America’s most entrenched problems.
Outline of this episode:
- [1:30] – Nathan introduces Daniel
- [2:14] – Why is fraud a big problem to solve in Latin America?
- [7:08] – The difference between background checks in LatAm and the US
- [9:42] – Growing up in Cali, Colombia
- [12:48] – How startup failure led to Paladin Cyber
- [14:10] – Where did you get the attitude to give back to your home country?
- [16:14] – Lessons learned in Daniel’s childhood
- [19:32] – Why Truora likes to hire very junior engineers
- [20:21] – Lessons learned from Beepy
- [22:38] – How does experience with Beepy and Rappi influence Truora?
- [25:37] – Why transparency is important at a startup
- [26:14] – How to build the Truora team
- [27:16] – How does the app work?
- [28:35] – How to raise money for Truora
- [30:51] – Top tips for companies applying to YC
- [32:41] – How to get the most out of YC?
- [33:30] – Advice for founders raising money in LatAm
- [35:36] – What’s next for Truora?
- [36:53] – Daniel’s recommended resources
- [38:12] – Daniel’s advice to his younger self
Resources & people mentioned:
- Truora
- Y Combinator
- Accel
- Kaszek Ventures
- Magma Partners
- Paladin Cyber
- Rappi
- Influence – Robert Cialidini
- Grit – Angela Duckworth
Greatest Hits Episode: Federico Vega, Transforming Transport Logistics in Latin America, Ep 145
For this week’s episode of Crossing Borders we’re revisiting one of our greatest hits episodes featuring Cargo X’s Federico Vega.
Anytime you have an item that you need to send from here to there you enter the world of transport logistics. It may seem as simple as calling UPS or FedEx, but there’s a lot more that goes into it for the companies that provide the service, not to mention, freight companies delivering all around the country. In Latin America, things get even more complicated.
In Brazil, for example, 40% of the trucks that are on the road delivering packages and freight are not full. That’s a terrible use of the transport logistics resources that are available. When my guest today, Federico Vega, realized that, he saw an incredible opportunity to solve a problem and create a dynamic company. Through patience, perseverance, and iterations, Federico has built CargoX from the ground up – it’s the Uber for trucking in Brazil.
When you solve a problem you have the potential for a business. Every entrepreneur has their own journey to discover exactly what kind of company they want to build. But as with every company that lasts, the needs of the consumer come to the forefront. It’s the problems, the needs the customers have, that drive the direction of the business.
Federico Vega discovered that any company that regularly ships items across Brazil needs to do so reliably and as inexpensively as possible. His initial belief was that if he makes use of trucks that are already scheduled to embark on deliveries, he’ll be able to provide more income to the driver and deliver a less expensive way for companies that utilize transport logistics to do so. His idea has worked beautifully. In this episode, you’ll hear his story.
From bathroom stall to a “Starbucks office,” to a fully formed company and team.
CargoX didn’t start with its business approach and existing structure fully formed. No company does. In fact, Federico Vega started the company part time while he was still working a full-time job. He found himself more and more often visiting the bathroom stall with his iPad to take care of issues with his new company and decided it was time to quit his good paying job and launch the company for real.
That’s when he moved to what he calls his “Starbucks office.” He and some hired help did their work from Starbucks every day for a long time as the company changed. At one point they even shut down and reopened with a new model and approach. Through funding rounds and iterations, CargoX has truly become the Uber of the trucking industry in Brazil.
Advice for startups: Develop a network within your industry. Don’t waste time on irrelevant events.
When I asked Federico what he’d say to others who are starting a company in Latin America he said that they should become laser focused on the niche or industry that they are serving and begin making connections. It’s not worth your time to go to broad conferences and events – including generalized networking events. You need to develop the contacts and connections within your industry that make it easier for you to build your company wisely.
Advice for startups: Look for traditional industries that already work and use tech to make them better.
Another piece of advice from my guest on this episode of Crossing Borders, Federico Vega, is that rather than trying to create a new market (like Twitter or Uber) you should invest your time and energy in investigating the needs that exist in traditional, established industries. Once you locate the pain points, look at the possible tech solutions and see if there’s a way you can meet the need at a reasonable cost to the end-user and still make a profit. If you can, you’ve likely got a good business idea on your hands.
Federico and I had a great time talking about how he’s changing the transport logistics industry in Brazil. My hope is that as his company grows, he’ll become like one of his favorite examples – Alibaba – and find ways to expand his influence worldwide. Enjoy listening.
Outline of this episode
- [1:24] - Federico’s background and current business – CargoX: Uber for trucks
- [4:03] - How did a guy from a small town in Patagonia build this kind of business?
- [8:12] - The response of family and friends when Federico decided to leave his cushy job
- [11:07] - Running his startup from a toilet stall – breaking into his own
- [14:39] - How Federico shut down his startup, regrouped, and started with a new USP
- [15:51] - Starting over: raise funds or find clients?
- [19:55] - The turning point that made the business take off
- [23:57] - Advice to founders about raising money
- [28:28] - Why silicon valley investors should consider Latin American companies
- [30:14] - What would Federico tell himself if he could advise himself from the start
- [34:58] - The next steps for CargoX
Resources & people mentioned
- Federico Vega
- CargoX
- Valor Capital
- NXTP Labs
- Uber
- Goldman Sachs
- Alibaba
- eBay
- Groupon
- AirBNB
Pedro Moura, Flourish: Building the tech infrastructure to help people make better financial decisions, Ep 144
Pedro Moura moved from Natal, Brazil to the US at a young age, overcoming many challenges while always trying to build a better future for himself, his family and his region. His perseverance and grit guided him to create a company that he is truly passionate about. In this episode of Crossing Borders, Pedro tells the story of his career path and how taking a risk on what he really believed in led him to found Flourish, a B2B SaaS company that empowers people to establish positive money habits.
In this episode, I sat down with Pedro to discuss how he landed on the idea for Flourish, what companies can do to attract foreign talent, and how to think of a business from a global perspective.
Finding a fit in financial inclusion Pedro’s story is truly inspirational. He moved to Northern California from Brazil when he was young, and his mother worked tirelessly for the family. Pedro attended UC Davis, studying Economics and International Relations, then venturing into Wealth Management at Morgan Stanley. However, he soon realized the position was not the best fit for him. After joining Opportun, a startup dedicated to making financial services more accessible, Pedro realized his passion for financial inclusion and decided to start Flourish.
Listen to this episode of Crossing Borders to learn more about Pedro’s career path and what led him to Flourish.
Attracting talent overseas A key part of Pedro’s story was his decision to ‘cross a border’ to build something great. With talent today more mobile than ever before, some countries are still more hesitant than others to recruit from out-of-country. Despite political immigration boundaries, the culture of international collaboration is healthy and thriving.
Find out more about the opportunities that lie in hiring across borders in this episode of Crossing Borders.
Chasing your passion While Pedro was still working at the bank, he saw a TV program that inspired him to learn more about companies that were driven by social issues: specifically, the disparity between the Latin American community and the world of financial services spoke to him. This experience sparked Pedro’s curiosity and led him to Opportun and then to founding Flourish.
Learn more about how Pedro discovered his passion in this episode of Crossing Borders.
Pedro Moura’s story is inspiring in more ways than one. Adapting to a new environment at a young age and thriving required perseverance and hard work. By following his passion, he took several career risks to serve the Latin American community. Join us to learn his story and what he is building at Flourish.
Show Notes:
- [1:90] - About Flourish
- [3:35] - Pedro’s move to the US
- [7:00] - Adapting to a new culture at a young age
- [8:30] - Advice on attracting talent
- [12:30] - From wealth management to Oportun
- [16:30] - Why starting a company was the natural next step
- [18:30] - How geography plays a part in the business
- [22:10] - What is Flourish’s next step
- [23:20] - What advice would you offer your younger self?
- [25:30] - Where do you see Flourish 2 years from now?
Resources & people mentioned:
- Pedro Moura
- Flourish
- Book: The Brain That Changes Itself
Alexander Torrenegra, Torre: Reinventing job-matching and recruitment services, Ep 143
Alexander Torrenegra believes that most talent is going to waste because it’s not being exposed to the right opportunities. That’s why he founded Torre, a platform that streamlines the application, recruitment, and selection process for remote work. This new professional network matches the best talent in Latin America with companies around the world.
Before Torre, Alexander co-founded and bootstrapped Voice123 and BunnyStudio, forever transforming the voice acting industry. He’s also been an angel investor with his wife for over two decades, won many entrepreneurship awards, and written several practical guides.
I sat down with Alexander to talk about his entrepreneurial trajectory from getting a loan from a bank at 14 years old with his first business, to moving from his native Colombia to the US and eventually founding Torre. We also discuss Voice 123’s business model and the benefits of bootstrapping a company.
Getting a loan as a 14-year-old Alexander explains that becoming an entrepreneur has always been a decision he’s made out of necessity, rather than passion. For him, it’s a means to an end–that at 14 years old, was buying a computer. He’d fallen in love with computers at a very young age, sneaking into classrooms in the after hours at the university where his mom was a secretary. He soon figured out that with a loan from the bank he would be able to buy a computer. However, he hadn’t factored in that his age might be an issue.
Learn more about the incredible story behind Alexander’s first bank loan at 14 years old and how he paid it off in this episode of Crossing Borders.
The early days of Voice123 When Alexander met his wife in the US, he was introduced to a whole new world. Through his wife, a voice actress herself, he learned about the inner workings of the voice acting industry and how unmeritocratic it could be. By then, Alexander was working as a webmaster and decided to create a solution to a problem that nobody had tackled until that moment.
Listen to this episode of Crossing Borders to learn more about what the voice acting industry looked like before Voice123.
The first step for a moonshot According to Alexander, there are two basic components to kicking off a moonshot-based business. One of the biggest factors is a person’s capacity to have financial freedom. These types of businesses are characterized by being extremely ambitious and exploratory, meaning that there may not be any near-term profitability or benefit. Therefore, having something to fall back on or resources to maintain yourself is key.
Check out this episode of Crossing Borders to learn more about moonshot-thinking and how Alexander brainstorms new business ideas.
A year after COVID-19, the job market has been completely transformed. The reality is that remote work is here to stay, and solutions like Alexander’s Torre are making it easier for companies to hire and for people to find work in this new normal.
Outline of this episode:
- [1:30] - About Torre
- [3:47] - An entrepreneur out of necessity
- [5:40] - Starting a business at 14
- [10:38] - Upgrading the business
- [13:36] - Building Voice123
- [16:44] - Choosing a business model out of ignorance
- [19:40] - On going viral with Fred Wilson
- [23:30] - Decision to bootstrap
- [26:30] - Advice to founders on getting started
- [29:50] - Is this a LinkedIn killer?
- [31:40] - Kicking off a moonshot
- [34:09] - Questions Alexander asks himself when brainstorming
- [36:25] - Advice to Alexander’s younger self
- [37:40] - Books, blogs, & podcast recommendations
- [40:15] - What’s next for Torre?
Resources & people mentioned:
- Alexander Torrenegra
- Torre
- Remoter: the why-and-how guide to building successful remote teams by Alexander Torrenegra
- Voice123
- BunnyStudio
- Fred Wilson’s blog: AVC
- Books: Foundation, Platform Revolution, Benjamin Franklin: An American Life,
- Documentary: Cosmos by Carl Sagan
Pete Flint, NFX: Tapping into world-class startups in Latin America, Ep 142
During the summer of ‘95, when Netscape went public, Pete Flint decided he wanted to get involved in Internet startups as the next step in his career. He went on to form part of the founding team of lastminute.com in the UK– an online travel site that was later acquired for over $1B.
With his eyes set on Silicon Valley, Pete eventually made his way over to the US and founded Trulia, one of the largest and fastest growing real estate websites in the US that merged with Zillow. Today, Pete is on the other side of the investment table as General Partner at NFX, a Seed and Series A venture firm based in San Francisco.
I sat down with Pete to talk about what it was like founding startups in different Internet eras and why he decided to make the jump into Latin America with NFX. Pete also provides advice to founders for overcoming crises, having experienced himself running a travel company during 9/11 and a real estate company during the 2008 financial crisis.
Founding a company in two different geographies and Internet eras When comparing the context in which lastminute.com and Trulia were founded, Pete considers that there were more similarities than differences. However, he recognizes that some marked differences were the market fragmentation as well as the cost to get going in the UK in 1998 compared to the US in 2005.
Find out more about the differences between the two Internet eras in this episode of Crossing Borders.
Dealing with a crisis as a founder Pete saw firsthand what it was like to deal with a crisis as a founder– with lastminute.com, it was September 11, and with Trulia, it was the 2008 financial crisis. The repercussions of these events were felt deeply worldwide, but especially in Pete’s industries. He explains that the greatest struggle was more mental rather than business related.
Listen to this episode of Crossing Borders for Pete’s advice on maintaining personal and team morale during a crisis.
On identifying market opportunities As a serial entrepreneur, Pete has developed a keen eye for business opportunities over the years. There are three different aspects Pete takes into account when picking an industry to build a company, one of them being cultural adoption. For example, with Trulia, he identified a rise in consumer searches for online real estate services. Whereas today, the most recent cultural phenomenon would be remote work.
Learn more about the other two aspects Pete considers when evaluating an opportunity in this episode of Crossing Borders.
Pete Flint’s impressive track record as an entrepreneur provides him with the insight needed to identify great opportunities and support other founders in their journeys as an investor at NFX.
Outline of this episode:
- [2:16] - About NFX
- [3:12] - From London to Silicon valley
- [6:15] - Founding companies in different internet eras
- [12:20] - Criteria for picking travel and real estate industries
- [16:17] - Checking off boxes
- [18:43] - Dealing with a crisis
- [23:22] - Making the jump into Latin America
- [28:20] - Recruiting in other geographies
- [30:28] - Excitement for Latin America
- [33:02] - Understanding what is exceptional
- [36:30] - Advice to Pete’s younger self
- [38:56] - Books, blogs, & podcast recommendations
Resources & people mentioned:
- Pete Flint
- NFX
- Trulia
- La Haus
- Nuvocargo
- Blog: Farnam Street
- Book: Think Again
Bismarck Lepe, Wizeline: Building world class startups from Mexico and Silicon Valley , Ep 141
Bismarck Lepe was part of the first batch of entrepreneurs to leave Google, ready to take the world by storm. And that he did. His first startup was Ooyala, an online video platform company that he built from zero to a $400M exit.
Today, a seasoned entrepreneur, Bismarck is President and CEO at Wizeline, a global product development company that helps its clients solve their biggest challenges with design and technology.
I sat down with Bismarck to talk about his nomadic childhood between the US and Jalisco in Mexico and how he veered from wanting to study medicine to taking an interest in tech startups and eventually founding his own. We also discuss the harsh truths about what it takes to be a successful entrepreneur and how Guadalajara’s tech ecosystem has evolved over the years.
Stories around entrepreneurship in the media Bismarck explains that being the first is always the hardest. When Bismarck launched Ooyala’s operations in Guadalajara in 2010, attracting talent was a challenge. Most engineers wanted to work at more established companies like IBM, Oracle or HP. He explains that there was a shift in that mentality as more startup stories began to be featured in the media.
Learn more about how these stories shaped the local ecosystem and served as inspiration for the next generation of talent in this episode of Crossing Borders.
Being penny-wise and pound-foolish When reflecting on his trajectories with Ooyala and Wizeline, Bismarck comments on the importance of knowing when to hire. He explains that there are certain roles in a company that a founder must fill in the early stages of the business. Delegating these too early can slow down the iterative process that finding product-market fit requires.
Find out why outsourcing too early can be harmful to a company in this episode of Crossing Borders.
Turning inefficiencies into opportunities As the son of two immigrants who moved from Mexico to the US, it hadn’t crossed Bismarck’s mind to go back in search of opportunities. However, a recruiting trip with his team to Guadalajara quickly changed that. Since then, Bismarck has played a key role in transforming Jalisco’s capital city into one of Mexico’s largest tech hubs.
Listen to this episode of Crossing Borders to learn more about how Guadalajara’s ecosystem has evolved over the years.
Bismarck Lepe is a household name in Guadalajara’s and Silicon Valley’s tech ecosystem due to the various initiatives he has led in the city to foster innovation and tech talent. Through Wizeline, he is transforming the way companies build better products faster.
Outline of this episode:
- [1:46] - About Wizeline
- [3:30] - The vision behind the expansion plan
- [5:10] - Bismarck’s nomadic upbringing
- [6:38] - On building wealth
- [8:29] - Entrepreneurship in the media
- [10:40] - From medicine to startups
- [13:04] - Leaving Google
- [14:02] - Lessons learned from starting, building, scaling, and selling a business
- [16:33] - Advice on dealing with boards
- [17:54] - The Telstra deal
- [20:00] - Starting the next company
- [22:34] - What it takes to be successful
- [26:25] - Guadalajara’s tech ecosystem
- [32:55] - Advice to Bismarck’s younger self
- [34:25] - Books, blogs, & podcast recommendations
- [35:20] - What’s next for the companies?
Resources & people mentioned:
- Bismarck Lepe
- Wizeline
- Cerby
- Ooyala
- Telstra Ventures
- Mark Ellis
- Liftoff
- Podcasts: Pivot, All-In, Business Wars
- Books: A Promised Land
David Poritz, Credijusto: Helping SMEs grow in Latin America, Ep 140
According to David Poritz, over six million SMEs in Mexico have historically lacked access to credit. That’s one of the reasons why in 2015, David decided to build Credijusto, a tech-enabled lender for SMEs in Mexico.
David has always been a strong advocate for human rights, founding his own non profit early in his career. In his quest to build a social enterprise that would promote economic development while supporting a good cause, he discovered the power of fintechs and the potential to stimulate growth in emerging markets.
I sat down with David to talk about how the SME lending space in Mexico has evolved since 2015 and the impact COVID-19 has had at Credijusto. We also talk about David’s lessons learned from the nonprofit sector and why working with impact investors is such an important part of Credijusto’s trajectory.
Going into tech with a social science background Before venturing into tech, David had built an impressive career in the nonprofit sector. He had studied Anthropology and Latin American and Caribbean Studies at Brown, which naturally resulted in most of his work being focused on that region. It was during his Master’s in the UK that he observed the first wave of tech enabled lending startups that he became fascinated with the idea of financial inclusion as a concept and began looking into applying these technologies to emerging economies.
Learn more about David’s transition into fintech from a social sciences background in this episode of Crossing Borders.
Building a startup as non-technical founders David and his co-founder, Allan, wore a variety of different hats when they first started Credijusto. David explains that they had to learn on-the-go about credit risk and underwriting, while also building a tech and commercial team. In hindsight, he realizes how much of a game changer bringing on experienced professionals to the team can be to a company’s growth.
Listen to this episode of Crossing Borders to find out more about David’s lessons learned from growing Credijusto’s team.
Impact investing with Credijusto David explains that impact investors have been a critical source of capital throughout Credijusto’s trajectory. From early on they wanted to develop a business that had a tangible impact that would improve access to credit and support businesses in their growth. With his background in human rights, David wanted to build a true social enterprise and found that fintechs with a consumer-centric approach checked the boxes.
Learn more about David’s perspective on impact investing and financial inclusion in this episode of Crossing Borders.
David is empowering entrepreneurs by promoting financial inclusion in Mexico’s SME lending space with Credijusto’s customer-centric solution that truly meets the needs of borrowers.
Outline of this episode:
- [1:56] - About Credijusto
- [4:48] - Going into tech with a social sciences background
- [7:12] - A customer-centric approach
- [9:02] - SME lending in 2015
- [11:07] - On getting started
- [13:09] - Credijusto’s inflection point
- [15:22] - Growing the team
- [18:22] - Credijusto and impact investing
- [21:09] - SME lending space
- [23:44] - Advice to David’s younger self
- [25:17] - What’s next for Credijusto?
Resources & people mentioned:
- David Poritz
- Allan Apoj Pascal
- Credijusto
- John Mack
- Broadhaven Capital Partners
- Elevar Equity
- IGNIA
- Kaszek Ventures
- QED Investors
- Point 72
- Goldman Sachs
- Credit Suisse
- PG Impact Investments
- Calvert Impact Capital
- DFC
Maria Fujihara, Sinai Technologies: Helping corporations mitigate climate change through decarbonization software, Ep 139
Maria Fujihara firmly believes in the power of the private sector to be a key piece in combating climate change. After a successful career in Brazil’s Green Building Council, Maria decided that if she was to work in that space again it would be on her own terms.
She fulfilled that desire by founding Sinai Technologies, a decarbonization platform that helps corporations manage their carbon emissions and allocate capital for mitigation efforts. They offer a complete guide to companies on how to navigate across their carbon journey from beginning to end.
I sat down with Maria to talk about what these pathways look like for a big company and why it’s important to transition to a low carbon economy. We also discuss her experience working in the nonprofit sector before entering the entrepreneurial world and Maria offers advice to other entrepreneurs on how to deal with the ecosystem’s gatekeepers.
On attending Singularity university When Maria was thinking about what her next step would be after working at a nonprofit, she knew she wanted to build a business but didn’t know where to start. She decided to enroll at Singularity university where she quickly learned about the iterative process involved in building a business through a four-month-long incubation program.
Learn more about Maria’s journey in Silicon Valley and her insights on Brazil’s ecosystem in this episode of Crossing Borders.
Entrepreneurship lessons at Green Building Council Brasil Maria explains that in Brazil nonprofit organizations have to sustain themselves financially. As a result, her job was to find revenue streams for the organization by developing products and finding sponsors. She considers that this aspect of her previous work shaped her as an entrepreneur and instilled in her certain skills and values.
Find out why Maria was amazed by entrepreneurs in Silicon Valley and how her path differs from theirs in this episode of Crossing Borders.
Transitioning to a low carbon economy Climate change is one of the most pressing issues of our time, but also one of the most complex. Even though the problem can seem a lot bigger than the available solutions, Maria believes that creating at least one piece of the solution is key to moving the needle. That’s why she was careful in choosing the problem she wanted to tackle.
Listen to this episode the Crossing Borders podcast to learn more about Maria’s thought process in narrowing down her solution.
Maria Fujihara is bringing sustainability and accountability to corporations through her decarbonization software. Her extensive experience in the nonprofit sector and working closely with governments gives her valuable insight on the pieces that need to be moved in order to effectively combat climate change.
Outline of this episode:
- [1:40] - About Sinai
- [5:41] - Green Building Council in Brazil
- [7:52] - Switching sectors
- [10:26] - Lessons learned from the nonprofit world
- [13:37] - On raising money with just an idea
- [16:31] - Advice to entrepreneurs on gatekeeping
- [18:10] - Choosing a problem you want to solve
- [22:04] - Books, blogs, and podcast recommendations
- [23:27] - Advice to Maria’s younger self
- [24:08] - Next steps for Sinai
Resources & people mentioned:
- Maria Fujihara
- Sinai Technologies
- Green Building Council Brasil
- Singularity University
- Podcasts: The mindbodygreen podcast, Product Decoding (Sparrow Ventures)
Agustin Feuerhake, Fintual: Redefining what it means to invest in Latin America, Ep 138
For retail investors in Latin America, the options to invest are limited. This space is often dominated by traditional banks that charge very high fees and involve processes that are quite complex for non-experts.
As co-founder and CMO of robo advisor Fintual, Agustin Feuerhake intends to change that reality by helping Latin Americans invest well. Fintual is a digital platform that makes investing in mutual funds more accessible through lower fees and simpler processes.
I sat down with Agustin to talk about his endeavors over the years as one of the most prolific entrepreneurs we’ve had on the podcast. He shares with us his reflections on reaching an exit with QueHambre as a young entrepreneur, as well as what it was like to have co-founded the first Chilean company to get into YCombinator.
Exiting QueHambre When Agustin and his team were building the food delivery startup QueHambre –a novel concept for Latin America at the time– they were not comfortable with the idea of raising capital. According to Agustin, they had the wrong approach and thought of it as asking for money rather than selling part of their company. Once they ran out of money, instead of pursuing growth, they decided to sell the business.
Listen to this episode of Crossing Borders to find out why small exits are extremely important for budding ecosystems and what Agustin learned from this experience.
The best of both worlds It was clear that Agustin and his team were on to something when they founded the software firm Platanus. There was high demand for their solutions which allowed them to filter through and pick the projects that they truly believed in. Sometimes, as in the case of Fintual and Buda, they would personally get involved with the projects. Agustin explains that this dynamic allows Platanus’ team to keep working together, while also working on individual businesses that each is passionate about.
Learn more about how Agustin works with his team and the success stories that have emerged in this episode of Crossing Borders.
Getting the YC badge Agustin had been a fan of Paul Graham’s essays for a long time– before YC started to accept international companies into the program. So when his co-founder suggested they apply, it seemed like a long shot. But, much to his surprise, they got a callback and eventually became the first Chilean company to get into YC. Their investment prospects immediately changed after that.
Learn more about their experience applying for YC and why it was hard to raise capital in Chile before the program in this episode of Crossing Borders.
Agustin is changing the investment landscape in Latin America through Fintual. And by creating programs like Platanus’ Demo Day, he is giving back to the ecosystem by providing tech founders with the contacts and entrepreneurial know-how needed to transform their ideas into successful businesses.
Outline of this episode:
- [1:28] - About Fintual
- [5:03] - Early signs of a businessman
- [7:24] - First job as a young professional
- [8:42] - Getting into QueHambre
- [10:50] - Major takeaways from QueHambre
- [12:08] - QueHambre’s blog post series
- [17:27] - About Platanus
- [20:12] - Creating Buda
- [22:57] - Agustin’s business strategy
- [24:46] - Criteria for choosing a project
- [26:18] - The first Chilean company at YC
- [28:50] - Lessons learned at YC
- [30:25] - Struggling to raise money in Chile
- [32:47] - Changing his view on raising money
- [33:34] - Advice to Agustin’s younger self
- [34:44] - Books, blogs, and podcast recommendations
- [36:44] - Platanus’ Demo Day
- [38:34] - What’s next for Fintual?
Resources & people mentioned:
- Agustin Feuerhake
- Como vendimos una empresa de 2 empleados en cerca de $1M
- Fintual
- Jaime Bünzli
- QueHambre
- Platanus Ventures
- Buda
- Voxound
- Betterment
- Wealthfront
- Books: Lifespan, Made to Stick, Thinking Fast and Slow
Jose Miguel Cortes, Fondo de Fondos: Supporting the venture capital industry in Mexico and Latin America, Ep 137
A fund of funds raises capital from different investors to invest in Venture Capital or Private Equity funds. These investors –mostly institutional– pick funds of funds so that they can trust a professional manager to pick the best VC funds to invest in.
Jose Miguel Cortes is the Head of Venture Capital and Impact Investing Strategies for Fondo de Fondos, a leading Mexican private equity and VC fund of funds and co-investment alternative investment management firm.
I sat down with Jose Miguel to talk about what a fund of funds model entails, from their investment criteria to what it’s like raising capital. We also discuss the impact of COVID-19 on the VC market in Mexico and Latin America and the vision behind Fondo de Fondos’ new impact fund.
“I have a lot of respect for VCs” Raising capital as an entrepreneur can be challenging, but raising capital as a VC is a lot harder. Jose Miguel understands how painful it can be to raise money in a region where capital is very scarce for these asset classes. However, though similarly challenging, Jose Miguel explains that raising capital for a fund of funds has its own peculiarities.
Learn about why the fund of funds model makes sense for certain investors in this episode of Crossing Borders.
COVID-19 aftermath in Latin America When COVID-19 hit in late March, Jose Miguel along with other investors in the fund became concerned about their companies’ performances. They were surprised by the industry’s resilience through the hardships brought on by the pandemic, with several industries like e-commerce and last-mile delivery advancing by three to eight years.
Listen to this episode of Crossing Borders to find out why Jose Miguel thinks Latin America’s VC industry will come out stronger after the pandemic.
Fondo de Fondos’ impact fund Jose Miguel explains that they launched the new impact fund to find investment opportunities that are tackling some of society’s most pressing problems. Most funds that receive institutional investment must comply with ESG requirements when evaluating potential investments. According to Jose Miguel, issues like polluted oceans, deforestation, climate change, and even social protests can be partially addressed with conscious investments.
Find out more about Fondo de Fondos’ impact fund in this episode of Crossing Borders.
Through Fondo de Fondos, Jose Miguel is finding the best fund managers in the region to invest in that are creating economic value but also have the capacity to create environmentally and socially conscious investments.
Outline of this episode:
- [1:25] - About Fondo de Fondos
- [3:06] - From engineer to investor
- [6:27] - Goal behind Fondo de Fondos
- [9:49] - Investing in funds
- [11:55] - Raising money for a fund of funds
- [15:36] - Ticket sizes at Fondo de Fondos
- [16:40] - Insights on the VC market in Mexico and LatAm
- [21:09] - Attracting local and foreign investors to the region
- [23:27] - The importance of impact investing
- [26:28] - Advice to Jose Miguel’s younger self
- [27:36] - Books, blogs, and podcast recommendations
- [28:49] - What’s next for Fondo de Fondos?
Resources & people mentioned:
- Jose Miguel Cortes
- Fondo de Fondos
- LAVCA
- AMEXCAP
- Diego Serebrisky
- ALLVP
- Dila Capital
Daniel Rodriguez, Picap: Delivery and Logistics in Latin Americans, Ep 136
Daniel Rodriguez lives in Bogotá, the third most traffic-congested city in the world. He knows a thing or two about the frustration that comes from spending hours inside a car in slow-moving traffic when you need to get somewhere.
Daniel’s usual response to these situations was to hitch a ride on a motorcycle. The ease and speed with which they would navigate Bogota’s congested streets made him realize that many other Colombians could benefit from this solution. So he decided to launch Picap, a ride-hailing platform that boasts one of the largest motorcycle fleets in Latin America.
I sat down with Daniel to talk about some of his first endeavors from selling empanadas at school to eventually founding his first startup Smart Taxi. We also discuss the real problems that Picap is solving through its ride-hailing and logistics services, as well as how they overcame the regulatory hurdles that disruptive businesses often have to face.
Adding value to Picap’s drivers Daniel explains that Picap first started out as a ride-hailing platform before branching into logistics. As his startup grew, he became very passionate about Picap’s drivers and how he could add value to their lives. He realized that there was a missing link between his drivers who were looking for opportunities to grow and companies looking for logistics services. Putting two and two together, he decided to launch a logistics vertical for drivers to start delivering packages.
Listen to this episode of Crossing Borders to learn more about Picap’s logistics vertical.
Drawing comparisons with Gojek Although it was further down the line that Daniel discovered that there was a similar solution to Picap’s in Indonesia by the name of Gojek, he comments that there were many lessons he learned from that comparison. One of the main takeaways from observing Gojek’s trajectory was that they had faced the same problems with the government and regulations and the solution was to focus on solving the problem and grow fast.
Learn more about the lessons Daniel learned from investors and mentors on how to overcome regulatory hurdles in this episode of Crossing Borders.
The root of the problem One of the reasons motorcycles are a great solution for Latin America’s largest and most congested cities is that they can go where cars cannot. Daniel explains that in Latin America, many cities were built and have continued to grow with no proper planning. The result? Small roads overcrowded with cars.
Learn more about why motorcycles are a great option for transport and deliveries in Latin America in this episode of Crossing Borders.
Daniel is helping the ecosystem grow by contributing to the economic development of the region through Picap’s logistics services. He is passionate about adding value to the livelihood of Latin Americans.
Outline of this episode:
[1:43] - About Picap
[5:28] - Raised in a family of entrepreneurs
[10:10] - Drawing inspiration from Gojek in Indonesia
[13:44] - Overcoming regulatory hurdles
[16:13] - Motorcycles as a solution to car congestion
[17:58] - The inner workings of Picap
[20:28] - Advice to Daniel’s younger self
[21:33] - Books, blogs, or podcast recommendations
[22:44] - What’s next for Daniel and Picap?
Resources & people mentioned:
- Daniel Rodriguez
- Picap
- Books: A Purpose-Driven Life
Brynne McNulty Rojas: Leading Colombia’s Real Estate Industry into the Future, Ep 135
Born and raised in New Jersey, Brynne McNulty Rojas’ interest in the real estate industry goes back to one of her classes about international housing finance systems while an undergraduate at Wharton, where she learned about how property ownership rights in informal communities drive economic development.
After graduating, she joined Goldman Sachs where she spent 4 years investing in property across the US. She later joined a proptech startup in New York before studying for two years at Harvard, and spent time at a San Francisco online mortgage origination startup. These experiences made her aware of how tech was affecting an antiquated industry, something that remained with her as she moved to another country.
I sat down with Brynne to talk more about her experience in real estate and decision to start Habi. We also discuss the process of buying and selling a property in Colombia and how Habi is improving it, and some of her learnings from raising US capital.
Previous experience paired up with a fragmented market
Moving to Colombia and starting a company hadn’t been part of Brynne’s professional plans, but after graduating from Harvard she moved to Colombia with her husband. Brynne initially joined McKinsey as a consultant, but had become increasingly aware of the inefficiencies in the Colombian real estate market and saw the opportunity to solve them. She also met her Habi co-founder, Sebastian, a successful entrepreneur, and decided to make the jump and build Habi.
Learn more about Brynne’s journey in real estate and entrepreneurship in this episode of Crossing Borders.
Starting with a capital intensive model
Buying and selling a house in Colombia is an extremely manual, person to person and with many friction points for the consumer. 70% of middle class apartments are not listed online and one of the most common ways to sell an apartment is to put up a sign in the window and hope someone calls. Real estate is fragmented, with no broker controlling more than 2% of the transactions. Brynne and Sebastian realized that in order to solve those difficult pain points, they needed to own the asset, and the entire transaction process.
Learn more about Habi’s decision to start with their current model and how it works in this episode of Crossing Borders.
Raising Venture Capital
Brynne acknowledges that part of the fundraising process involves timing and luck, but shares some of her experience on raising capital from the US for a Colombian startup, and gives some advice on how to make the most of conversations with investors who might not be familiar with the size of the opportunity you’re targeting.
Listen to this episode of Crossing Borders to learn more about Brynne’s experience fundraising.
Outline of this Episode:
1:44 About Habi
2:20 Buying and selling a property in Colombia
4:25 From New Jersey to Colombia
5:54 Brynne’s previous stops before starting Habi
8:50 Starting something of her own
9:47 Why Habi started with an MLS and Ibuyer model
12:06 Buying and selling a property through Habi
13:10 Habi’s experience while fundraising
15:10 Advice on raising money from the US for a Colombian solution
16:41 Habi’s next milestones
17:26 Advice to Brynne’s youngerself
Resources and people mentioned:
Habi
Brynne McNulty Rojas
Sebastian Noguera
MLS (Multiple Listing Service)
Opendoor
Rodrigo Sánchez-Ríos, La Haus: Helping Latin Americans Find their Ideal Homes, Ep 134
Rodrigo Sanchez Rios’ childhood dream was to be like Bruce Wayne. He grew up in Tijuana, Mexico surrounded by great role models in his family who instilled in him a strong sense of ambition and hunger for knowledge. After obtaining an engineering degree at MIT, working on Wall Street, and completing a Master’s in business at Stanford, Rodrigo decided his next step was to become an entrepreneur.
A trip to Colombia with his Stanford classmates Tomas and Jeronimo Uribe opened his eyes to the amazing business opportunities the Colombian market has to offer. Together, they founded Jaguar Capital, a real estate development and investment fund that currently has $350M in assets under management. As Rodrigo learned more about Colombia’s challenging real estate industry, he realized that there was an opportunity to disrupt the market and decided to start La Haus, a proptech that is helping Latin Americans find their ideal home.
I sat down with Rodrigo to learn more about his decision to go into finance and his experience working at Lehman Brothers until right before the firm declared bankruptcy in 2008. We also talk about Colombia’s broken real estate industry, how he first bootstrapped La Haus with Jaguar Capital before raising outside funding, and the importance of mentorship and role models.
From boom to bust When Rodrigo landed a banking internship on Wall Street in 2006, he recalls feeling like a kid in a candy store. However –as we all know– that financial boom turned into a bust two years later. Rodrigo had left Lehman Brothers right before the crash when his colleagues saw their world collapse before them. That experience taught Rodrigo valuable life lessons about risk.
Learn more about Rodrigo’s experience being in the “eye of the hurricane” during the 2008 financial crisis in this episode of Crossing Borders.
“In Colombia, selling and purchasing a house can take up to 14 months” It was through Jaguar Capital that Rodrigo and his co-founders were able to identify the market opportunity that would lay the foundation for launching La Haus. Three factors had aligned that made the timing for a solution like La Haus’ perfect. For instance, real estate developers in Colombia were making decisions based on instinct in terms of what and when to develop, presenting an enormous opportunity to optimize that process.
Listen to this episode of Crossing Borders to learn more about the two other factors that make La Haus such a timely solution for the Latin American market.
Finding true believers of La Haus’ solution Rodrigo explains that when you find someone who already believes in the market opportunity, the pressure to obtain the sponsorship lies in convincing the person that you are the right vessel for that vision. For La Haus, that true believer was Pete Flint, founder of Trulia and current managing partner at NFX. With Pete’s backing, La Haus was able to make the jump from Medellin to Bogota and eventually attract the attention of Kaszek Ventures.
Dive deeper into La Haus’ zero-to-one story in this episode of Crossing Borders.
Rodrigo is revolutionizing the real estate industry in Latin America, leveraging technology and data to help Latin Americans purchase their dream homes. La Haus’ success has already been replicated in Mexico City and Bogotá,
Show notes:
- [2:47] - About La Haus
- [3:21] - Growing up in Tijuana, Mexico
- [4:07] - Studying in the US
- [6:43] - From computer nerd to finance
- [8:51] - Leaving Lehman Brothers
- [10:45] - Choosing Stanford over Harvard
- [12:30] - A life-changing trip to Colombia
- [15:00] - Building blocks for La Haus
- [16:37] - Latin America’s broken real estate industry
- [20:35] - From idea to solution
- [23:29] - Raising money in Colombia
- [25:57] - Bootstrapping La Haus
- [28:23] - Advice to Rodrigo’s younger self
- [30:29] - Books, blogs, & podcast recommendations
Resources & people mentioned:
- Rodrigo Sánchez-Ríos
- Jaguar Capital.co
- Pratt & Whitney
- Lehman Brothers
- Tomas Uribe
- Jeronimo Uribe
- Pete Flint
- Trulia
- David Velez
- Nubank
- Kaszek Ventures
- Books: How will you measure your life?
Brian Requarth, Viva the Entrepreneur: Founding, Scaling and Raising Venture Capital in Latin America, Ep 133
Over a decade ago, Brian Requarth bought a one-way ticket to Colombia and never looked back. Since then, he’s become a seasoned entrepreneur and investor, having founded, scaled, merged, and exited VivaReal, a leading proptech startup in Brazil.
Well acquainted with the challenges that are unique to Latin America, Brian is now focusing on helping early-stage founders build the next generation of world-class tech companies through his newest project, Latitud.
In his second time around on the podcast, I sat down with Brian to talk about the growing pains of merging operations with Grupo Zap and why acquihiring is one of the most underutilized strategies of large tech companies in the region. We also discuss how the ecosystem has evolved since 2009 and what inspired him to write his book Viva the Entrepreneur: Founding, Scaling and Raising Venture Capital in Latin America.
Merging with a competitor Brian explains that the VivaReal merger was particularly complicated because the DNAs of the companies were very different. While VivaReal was a relatively small company, Grupo Zap was much larger – so much so that telenovelas would organically mention them in their shows. This difference in size resulted in unbalanced power dynamics between the companies which became an obstacle for swift decision making.
Listen to this episode of Crossing Borders to learn more about Brian’s major takeaways from merging with Grupo Zap.
Viva the Entrepreneur Inspired by how The Hard Thing About Hard Things made him feel at a low point in his life, Brian decided to write a book of his own. He had been named Entrepreneur of the Year in Brazil and had just raised money, but was really struggling as a founder. Ben Horowitz’s book provided him with the comfort he needed in what is often a lonely journey as an entrepreneur. Through Viva the Entrepreneur, Brian hopes to pass on his lessons learned and help other entrepreneurs in Latin America get through the tough times.
Learn more about Brian’s new book and his journey as an entrepreneur in Latin America in this episode of Crossing Borders.
The Breakfast Club Brian knows how important it is to build a community when starting a company. Being able to connect with like-minded people over breakfast when building VivaReal was his way of creating his own community in Latin America when the ecosystem was still nascent. This experience inspired Brian to give back to the ecosystem through Latitud, where he is helping entrepreneurs build the next leading tech companies in the region.
Find out how Brian is empowering the next generation of Latin American entrepreneurs in this episode of Crossing Borders.
Brian’s mission is to help cultivate a healthy ecosystem for Latin American tech startups, where talented entrepreneurs can thrive and build value through iconic companies. Through Latitud, Brian aims to make mentorships and investment opportunities more accessible in Latin America’s ecosystem.
Outline of this episode:
- [1:40] - About Brian
- [3:58] - From merge to exit
- [7:45] - Merging with a competitor
- [12:11] - Advice for companies looking to buy instead of build
- [14:58] - How the ecosystem has evolved since 2009
- [17:00] - Brian’s latest book
- [21:22] - Angel investing in Latam with Latitud
- [27:00] - Do’s and don’ts of investing in tech
- [34:00] - Where do you see the market going?
- [36:43] - Advice to Brian’s younger self
- [39:25] - Next steps for Brian
Resources & people mentioned:
- Brian Requarth
- Books: Viva the Entrepreneur: Founding, Scaling and Raising Venture Capital in Latin America, Hard Thing About Hard Things
- VivaReal
- Grupo Zap
- OLX Brasil
- Latitud
- Gina Gotthilf
- Yuri Danilchenko
- Ep 15 Brian Requarth, Building THE Online Portal for Real Estate in Brazil
- Monashees
- Kaszek Ventures
- Marcos Galperin
- Mercado Libre
- Gabriel Braga
- David Velez
- Nubank
- Thomaz Srougi
- Dr. Consulta
- Daniel Hatkoff
- Pitzi
Alejandro Freund: The path to shutting down a Latin American Startup, Ep 132
It's not easy to shut down a start up anywhere in the world. But in Latin America, founders feel even more pressure to not lose investor money or admit that their company isn't turning out how they wanted it to.
Alejandro Freund was the co-founder and CEO of YaEsta, at the time, a leading ecommerce company in Ecuador. Since winding down YaEsta, he’s landed on his feet and is now the Country Manager for Rappi in Ecuador.
I want to thank Alejandro for this moment of vulnerability and leadership where he shares with me and the rest of the world the painful process of shutting down a company. In this episode, he talks about the hardships and sacrifices that come with the job, such as managing personal relationships and knowing when to let go of a startup.
YaEsta in hindsight When Alejandro launched YaEsta, he believed that all the conditions were in his favor for them to succeed: the idea, the team, the funding. Ecuador was shaping up to be a hotspot for digital businesses and there were few things he would have done differently. However, if there is one factor that is truly out of anyone’s control is the timing.
Listen to this episode of Crossing Borders to learn more about why Alejandro and his partners decided to shut down YaEsta.
A commitment for the whole family Alejandro explains that when managing personal relationships in parallel to building a startup, transparency is key. The intensity of the experience can put a strain on relationships with friends and family, leading to many frustrating situations. Communicating the risk involved and the reality of the journey can help set the expectations down the line.
Find out more about the sacrifices that come with the entrepreneurial life in this episode of Crossing Borders.
Landing on your feet One of the most valuable lessons Alejandro takes away from this experience is that life moves on. Pulling the trigger on a startup is one of the hardest decisions an entrepreneur can make. The signs to close shop may all be there, but pressure from family, friends, investors, and society in general may be blinding you from seeing clearly and realizing that it’s time to move on to the next project.
Learn more about the cultural differences between Latin America and the US when dealing with failure in this episode of Crossing Borders.
I want to thank Alejandro once more for doing this community service for the Latin American ecosystem. We need more entrepreneurs willing to talk about this side of starting and running a business in the region.
Alejandro has gone through the process of building and winding down a startup and has the battle scars to show it. Since then, he’s landed back on his feet and is ready for the new experiences that await him as Country Manager at Rappi.
Show notes:
- [1:35] - Building Rappi in Ecuador
- [2:26] - YaEsta in 2017
- [5:18] - Winding down the company
- [23:18] - What would you have done differently?
- [28:05] - Advice to other founders going through tough times
- [33:02] - Knowing when to shut down
People & resources mentioned:
- Alejandro Freund
- YaEsta
- Rappi
- Brad Feld
- Jerry Colonna
- Podcast: Quitting to Win, Stefi Cohen
- Ep 11 Alejandro Freund, Pioneering Ecommerce in Latin America
Juliana Sarmiento, Envíoclick: Reimagining the logistics industry in Latin America, Ep 131
Juliana Sarmiento always knew she wanted to create value for her community by starting her own company. Raised in a family of entrepreneurs, she knew what she would be getting herself into by choosing this path. Along with the challenges that come with starting a business, she had also been exposed to the positive impact that entrepreneurship could have on society.
Today, Juliana is co-founder and Chief Revenue Officer of Envíoclick, a Mexico City-based logistics platform that connects freight and courier companies with businesses in Latin America. Their clients range from leading e-commerce companies like Mercado Libre to small and medium-sized businesses that need help in running more efficient operations.
I sat down with Juliana to talk about how Envíoclick’s solution is transforming the logistics and delivery industry in Mexico and Latin America. We also discuss how the e-commerce landscape has changed since 2014 and Envíoclick’s decision to expand to Colombia.
Educating the market about logtech Although Latin America presented a huge opportunity for logistics companies, Juliana explains that couriers and delivery companies were skeptical about the value that new technologies could bring. It took a lot of conversations about the logistics gap that exists in the region for their future clients to understand that Juliana’s solution was key to helping the market develop faster.
Listen to this episode of Crossing Borders to learn more about Latin America’s broken logistics industry.
The entrepreneurial experience at Linio Early on in her career, Juliana had the foresight to know that tech would soon take Latin America by storm. So when she was contacted to work at the first pure e-commerce company in Latin America, she immediately accepted and stayed on for five years. As one of Linio’s ealy employees, she describes the experience to be like that of an entrepreneur. She had the freedom to make her own decisions while she educated the market about this new way of buying products.
Check out this episode of Crossing Borders to find out how Juliana’s experience at Linio inspired her to dive deeper into the logistics industry.
An organic partnership Juliana explains that choosing a business partner was an easy decision for her. As the Commercial Regional Managing Director for Linio, she worked closely with Rosa who was Regional Head of CRM for the company. They both realized that logistics in LatAm needed to evolve. After forming a strong work relationship at Linio, it only made sense for them to take the leap together.
Find out how Juliana and Rosa overcame their hesitations and thrived as female founders with Envíoclick in this episode of Crossing Borders.
Juliana believes that starting Envíoclick was one of the best decisions in her life. The logistics startup has since expanded into two countries and boasts over 600 clients. With this solution, Juliana is helping bridge the gap between businesses and logistics for more efficient and scalable companies in Latin America.
Outline of this episode:
- [1:38] - About Envíoclick
- [3:05] - Reality of logistics in LatAm
- [5:56] - Choosing to become an entrepreneur
- [7:12] - Jumping into tech
- [10:33] - E-commerce in LatAm in 2014
- [13:09] - Changes in logistics
- [15:47] - Choosing a business partner
- [18:25] - The ups and downs of the business
- [21:42] - Advice to other female entrepreneurs
- [23:49] - Decision to expand to Colombia
- [26:42] - Envíoclick’s response to COVID-19
- [29:05] - Books, blogs, & podcast recommendations
- [31:03] - Advice to Juliana’s younger self
Resources & people mentioned:
- Juliana Sarmiento
- Envíoclick
- Rosa Ma. Costes Vélez
- Linio
- Rocket Internet
- Innohub
- Books: Good to Great, Delivering Happiness: A Path to Profits, Passion, and Purpose
James Currier, NFX: Transforming How Innovators are Funded, Ep 130
James Currier is General Partner at NFX, an early-stage venture capital firm that focuses on network effect businesses. As a serial entrepreneur and co-founder of four VC-backed companies, James has become an expert on network effects and growth.
Through software and educational content, James and his co-founders are building a venture firm with a founders first approach that allows them to share their knowledge about growth and network effects to build impactful companies.
I sat down with James to talk about his experience as an entrepreneur and an investor and starting and working with some of today’s leading internet companies. James gives great advice on starting a company, choosing a co-founder, and approaching a meeting with a VC. We also touch on NFX’s selection criteria for founders and how they tripled the rate at which they were investing when COVID-19 hit.
Building a website with 175M users when the Internet had 600M After graduating Harvard Business School, James was stuck between two paths: work at a VC or learn about growing a company. He chose the latter and dived into a 16-year long career as an entrepreneur. His first company –of many– was Tickle, a viral media company pioneering A/B testing and other viral growth mechanisms. Tickle won many accolades including Webby’s fastest growing website of the year in 2002.
Listen to this episode of Crossing Borders to learn more about how James exited Tickle and led many other successful companies.
Co-founder dynamics According to James, one of the biggest reasons for startup failure is co-founder disagreement. Finding the right partner is essential for a business to succeed, so it is important to look out for warning signs of incompatibility between founders in a work environment. James explains that it’s easy to romanticize the idea of starting a business with a friend or a family member. However, founders should experience working with them first for a couple of years to understand what they are like as a business partner.
Learn more about work relationships between founders in this episode of Crossing Borders.
The best mindset for a meeting with a VC James explains that many founders go into a VC meeting with the wrong attitude. He advises founders to approach these meetings with the intention to collaborate as an equal. Dedicate a part of the meeting to presenting and another to discussion. VC firms can see the market through a wider lens. A founder that is open to having a dialogue can greatly benefit from that perspective.
In this episode of Crossing Borders, James provides other pieces of wisdom and useful tools for founders to build great relationships with venture capital firms.
James Currier has learned important lessons about what it takes to create successful companies over the years as a founder. Now, as an investor at NFX, he is sharing that expertise with present and future founders to build the next generation of leading tech companies.
Outline of this episode:
- [1:40] - About NFX
- [2:36] - Big returns from Latin America
- [5:49] - Lessons learned as a founder
- [10:19] - Things to consider for co-founder dynamics
- [13:00] - NFX selection criteria for founding teams
- [15:57] - NFX’s investment thesis
- [20:00] - Servicing the founders
- [24:08] - A meeting with NFX
- [29:42] - What’s next for NFX?
Resources & people mentioned
- James Currier
- NFX
- Signal
- The Company Brief
- Jiff
- Tickle
- La Haus
- Trulia
- Zubale
- Nuvocargo
- Battery Ventures
- Harvard Business School
- Princeton University
- Philips Exeter Academy
Álvaro Silberstein, Wheel the World: Creating Accessible Travel Experiences, Ep 129
A trip to Torres del Paine in the south of Chile became an opportunity for Álvaro Silberstein to put his startup idea to the test. Most travel platforms provide basic information about price, location, transportation, accommodation, and excursion options. However, few platforms cater to the specific needs of people with disabilities.
Álvaro is the co-founder and CEO of Wheel the World, a travel platform that goes one step further by empowering people with disabilities with travel experiences around the world that are more inclusive and accessible.
In this episode, I sat down with Álvaro to talk about how Wheel the World changes the user experience for people with disabilities that want to explore the world. We also discuss their fundraising process and participation in different accelerator programs, as well as how they’ve responded to the COVID-19 pandemic which has put traveling on hold for most people.
Entrepreneurship, a family legacy Being an entrepreneur was something that was expected in Álvaro’s family. So when he started a fantasy soccer platform or when he tried to build an Uber for people with disabilities, his friends and family weren’t surprised. While studying abroad he discovered his next venture when he realized that it was much easier to explore places as a person with a disability in the US than in his home country Chile.
Listen to this episode of Crossing Borders to learn more about the story behind Álvaro’s decision to found Wheel the World.
Pitching Wheel the World to investors When Wheel the World was just starting to seek investors and accelerators Álvaro explains that they were seen as a business for a very small market. However, the market research and the traction they were achieving proved otherwise. Naturally, the first investors were angel investors who were involved with people with disabilities and saw the value of what they were trying to build.
Find out how Wheel the World quickly caught the attention of key players in Chile and Silicon Valley in this episode of Crossing Borders.
Adjusting to the pandemic Many startups were forced to switch gears as the world was taken by surprise by COVID-19. With the travel industry being one of the hardest-hit sectors, Wheel the World refocused its efforts on fine-tuning its systems in the meantime. Due to the travel downturn, Álvaro and his team were forced to cut down on salaries, which he explains was an experience that only reinforced the trust he has in his team.
Learn more about what Álvaro and his team have been up to as the travel industry gradually revives in this episode of Crossing Borders.
Álvaro Silberstein believes that people’s curiosity to explore the world will be stronger than before the pandemic as traveling reactivates, and Wheel the World will be there to make those experiences possible for people with disabilities. The startup offers information on accommodation and tours in 40 destinations in 8 different countries and has a community of 60 thousand people supporting their mission.
Outline of this episode:
- [1:56] - About Wheel the World
- [5:27] - A family of entrepreneurs
- [8:03] - Why this business?
- [11:21] - The inflection point
- [14:00] - Fundraising process for Wheel the World
- [18:48] - Impact of COVID-19 on business
- [21:09] - Advice to Alvaro’s younger self
- [22:05] - Books, blogs, & podcast recommendations
- [24:00] - What’s next for Wheel the World?
Resources & people mentioned:
- Alvaro Silberstein
- Wheel the World
- Wheel the World videos: Torres del Paine, Mark Zuckerberg presents Wheel the World, and other destinations
- Booking.com accelerator
- Fondo CLIN
- Plug and Play
- Documentaries: Crip Camp
Javier García, Femsa: Collaborating with the most disruptive startups in Latin America, Ep 128
Javier García knew that there were at least 50 ways of doing corporate venture capital the wrong way, which is why he took a couple of years to figure out how to do it right with FEMSA. Today, Javier is the Director of Corporate Venturing and Growth Capital at FEMSA’s corporate venture capital fund. FEMSA is a publicly-traded conglomerate company that started out as a brewery and has produced popular brands like Dos Equis and Tecate.
Founded in 1890, FEMSA has since branched out into other business verticals such as drugstores, gas stations, and restaurants, including OXXO, the largest chain of small-format stores in Mexico.
I sat down with Javier to talk about his transition from consulting to working at FEMSA and getting involved with Latin America’s venture capital ecosystem. We discuss innovation in corporations and Javier shares tips on how to collaborate with startups and large corporations.
Getting a slice of the innovation pie According to Javier, FEMSA’s venture capital arm started as a mission to collaborate with the most disruptive external sources of innovation. He started to learn about the different ways to approach this collaboration by investigating and conducting over 30 interviews with people involved in the corporate venture capital world. Choosing the right way was another challenge.
Learn more about how Javier built an operational design for FEMSA to collaborate with the best startups on their business platform in this episode of Crossing Borders.
Engaging with the ecosystem from a perspective of learning After studying mechanical engineering at university, Javier considered working in the aerospace industry as one of his potential paths. However, his first experience working for a consulting firm made him realize he liked problem-solving and that he wanted to be in a space where he would be closer to the execution of solutions and be continuously faced with learning opportunities. He explains that he found the ideal formula working with FEMSA and learning about Latam’s venture capital ecosystem.
Listen to this episode of Crossing Borders to learn more about how Javier got involved in Latam’s venture capital ecosystem.
A misalignment of incentives Collaborating with a corporate venture capital fund can be very different from working with a traditional VC. Javier explains that there tends to be a misalignment of expectations between big corporations and entrepreneurs with regard to what actually happens at the startup. He sees this confusion during startup pitches where the entrepreneur prioritizes an investment over the actual collaboration.
Find out more about Javier’s recommendations for working with big corporations in this episode of the Crossing Borders podcast.
Javier García is making amazing collaborations happen between startups and corporations through FEMSA’s venture capital arm. His thirst for knowledge and his passion for problem-solving and execution are key to positioning corporate venture capital funds as attractive business partners.
Outline of this episode:
- [1:41] - About FEMSA
- [7:30] - Mechanical engineering in Monterrey
- [11:55] - FEMSA’s investment strategy
- [23:52] - Recommendations for working with big companies
- [29:38] - Lessons learned from collaborating with startups
- [36:24] - Advice to Javier’s younger self
- [38:16] - Books, blogs, & podcast recommendations
- [42:11] - What’s next for Javier and FEMSA ventures?
Resources & people mentioned:
- FEMSA
- Javier García
- OXXO
- Dos Equis
- Tecate
- Bain & Company
- Books: Masters of Corporate Venture Capital, Corporate Venturing, The Three-Body Problem, Atomic Habits
- Ep 26 Mak Gutierrez, Supporting Makers and Startups In Guadalajara
Manuel Olguín, Keynua: E-signatures for the Latin American market, Ep 127
As a serial entrepreneur in Latin America, Manuel Olguín is very familiar with the unique challenges that the region holds that can turn into amazing opportunities. One of those pain points is the time-consuming process of signing legal documents. While in the US e-signatures have been widely adopted, in Latin America this is still a novelty.
Having gone through this process on numerous occasions with his own startups, Manuel decided to co-found Keynua, an electronic signature provider that has the added component of identity verification through facial recognition. At Magma Partners, we’ve invested in Keynua’s disruptive solution which has also received backing as part of YCombinator’s 2019 winter batch.
I sat down with Manuel to talk about his first experience as an entrepreneur when LatAm’s VC industry was just getting started and how he combined his love of tech and his experience in the movie industry to found Cinepapaya. We also talk about how Keynua is providing a solution to fix Latin America’s broken notary services industry.
A Peruvian startup success story Originally from Peru, Manuel decided to go back home after having worked at several tech companies in the US and Europe to try his luck starting his own. With his background in movie distribution and production, he created an online solution for the movie industry. He founded Cinepapaya, a movie ticket selling platform in Peru that eventually grew and expanded into more than 12 South American countries.
Listen to this episode to learn more about Cinepapaya and its eventual acquisition by Fandango in this episode of Crossing Borders.
From the Netflix of LatAm to movie tickets for LatAm Cinepapaya had initially started off as a streaming service, but this changed when Netflix entered Latin America. Even though they were close to finishing the product, Manuel and his team had to make the tough decision to pivot. They took a look at the market opportunities and realized that they could repurpose their database to create an online ticketing platform. They found a space in LatAm’s market that hadn’t yet been filled.
Learn more about how Manuel and his team successfully pivoted Cinepapaya in this episode of Crossing Borders.
Latin America’s broken notary services industry Manuel’s decision to found Keynua came from his personal frustration with the document signing process while scaling Cinepapaya. While the US-based legal teams would send electronically signed documents, in LatAm they were still sending physically signed documents with wet signatures which would sometimes require a notary public stamp. This would add another few weeks to the process and significantly slow down business transactions.
Find out how Keynua is transforming this sector with its digital solution in this episode of Crossing Borders.
Manuel Olguín is changing the way documents are signed in Latin America with Keynua, helping many Latin Americans save time and money with their efficient and secure solution.
Outline of this episode
- [1:18] - About Keynua’s solution
- [6:35] - Manuel’s nomadic upbringing
- [7:20] - A serial entrepreneur
- [8:38] - Lessons learned from his first ventures
- [9:39] - Why Cinepapaya?
- [11:14] - Pivoting due to competition
- [13:26] - Building a business in Latam in 2012
- [15:23] - Cinepapaya’s regional expansion
- [17:47] - Getting acquired by Fandango
- [19:55] - Why Keynua?
- [22:18] - Latam’s notary market
- [26:00] - The YC experience
- [27:27] - Getting started with Keynua
- [29:57] - Advice to Manuel’s younger self
- [30:56] - Books, blogs, & podcast recommendations
- [31:46] - What’s next for Keynua
Resources & people mentioned
- Manuel Olguín
- Keynua
- Cinepapaya (now Fandango)
- Yupi Internet Inc.
- Wayra
- Startup Chile
- 500 Startups
- Book: American Colossus
Amir Salihefendic, Doist: Best Practices for the Remote Work Revolution, Ep 126
Although Amir Salihefendic has been an advocate for remote work for over a decade, he never envisioned that the worldwide shift to remote would take place as a result of a pandemic. Amir is the founder and CEO of Doist, a remote-first company that specializes in productivity software and currently offers two products: Todoist and Twist.
Todoist is one of the most popular task management tools in the world, while Twist helps teams balance work with collaborative conversations. As a remote-work pioneer, Doist’s 80 person team is spread across 30 countries and multiple time zones and has an employee retention rate of over 95%.
This is the second time I sit down with Amir to talk about the future of work. In this episode, Amir talks about how he experiences remote work in a post-COVID world and provides tips to those who have only recently transitioned into this modality. We also discuss the power of asynchronous work and how to build culture in a remote-first company.
The remote work revolution While most of the world has shifted to remote work, Amir has been doing it for over 14 years. COVID-19 has forced many companies to switch to remote work, and Amir explains that many are doing it wrong. Poorly designed setups that try to reproduce the office setting could end up creating a traumatic experience for employees.
Learn more about the do’s and don’ts of remote work in this episode of Crossing Borders.
Doist’s superpower: asynchronous communication With a fully distributed team spread across several time zones, Amir explains that real-time communication is almost impossible. Doist’s winning strategy has been to combine remote work with asynchronous collaboration. This enables Amir and his team to hire the best from anywhere in the world. An asynchronous setup allows employees to work uninterrupted and yield better results in a less stressful environment.
Listen to this episode of Crossing Borders to learn more about how asynchronous work encourages productivity.
Understanding the value of work Amir stresses that companies need to view their employees through a different lens and forget about trying to recreate the office environment when working remotely. One way in which this perspective changes is how work is valued. At Doist, they don’t care about the number of hours people work, they only care about the output. The output speaks for itself, which is why it’s important to hire team leaders that are experts in their field and can assess the quality of a deliverable.
Check out this episode of Crossing Borders to learn more tips from Amir about how to successfully manage a remote team.
Amir Salihefendic has developed numerous guides and blog posts at Doist sharing the best practices for globally distributed teams from his own experience. He’s opened the eyes of many to the enormous benefits and opportunities that can arise from remote work.
Outline of this episode:
- [2:50] - About Doist
- [4:09] - Remote work in 2007
- [5:10] - Global shift to remote work
- [7:06] - Best practices of remote work pre-pandemic
- [10:44] - Importance of asynchronous work
- [16:18] - Building a culture remotely
- [19:40] - Do’s and don’ts of remote work
- [23:37] - LatAm’s place in a remote-first world
- [29:26] - Advice to Amir’s younger self
- [31:14] - What’s next for Amir and Doist?
Resources & people mentioned
- Amir Salihefendic
- Doist
- Doist blog
- Doist guides
- GitLab
- GitHub
- Buffer
- Book: The Talent Code: Greatness Isn't Born. It's Grown. Here's How
Andrea Baba, FitCo: Digitizing Fitness Centers in Latin America, Ep 125
Andrea’s first experience as an entrepreneur was starting her own Zumba studio when she was 18 years old. Within a year of operating, she started to expand her business, hiring more instructors and gaining more clients. However, Andrea saw that managing her business solely on Excel spreadsheets and notebooks was limiting her company’s growth.
In true entrepreneurial spirit, Andrea decided to find a solution to her own problem. Together with her co-founder Alex, they set out to build a tool that would help fitness centers in Latin America to scale their businesses. And Fitco was born.
I sat down with Andrea to talk about how she combined her passion for fitness and her background in finance to start Fitco in Peru’s budding startup ecosystem. We also discuss their experience at Techstars’ Boulder Accelerator as the first LatAm startup to be accepted into the program and how Fitco has responded to the COVID-19 pandemic.
Becoming Fitco’s first client Managing a Zumba studio meant that Andrea was doing everything from teaching classes to answering Whatsapp messages from clients to managing the payroll. To take the next step in her business, she needed a tool that would help her scale her business in an efficient way. After several mockups, Andrea put her product to the test and her Zumba studio became Fitco’s first paying customer.
Listen to this episode of Crossing Borders to learn about how Andrea built Fitco and found a niche in Latin America’s fitness studios.
Catalysts of change in Peru’s startup ecosystem Peru’s startup ecosystem has transformed significantly over the past couple of years. Andrea recalls the early days of her startup and the struggles she faced in finding people to hire for Fitco. Today, she is proud of how far the ecosystem has come. She considers that government led initiatives have played a huge role in giving Peruvian startups the recognition and support needed to grow and attract investors to the ecosystem.
Find out more about how Peru’s startup ecosystem has transformed in this episode of Crossing Borders.
First Latin American startup to participate in Techstars Boulder Accelerator program Andrea explains what it was like to be physically on the same block as Brad Feld and David Brown as the first LatAm startup to receive investment from Techstars Boulder program. There, they learned about how to continue scaling Fitco and build a great business from the experience of other founders and mentors in the US. One of their greatest takeaways was Techstars’ people driven approach. Andrea and her co-founder were inspired to bring that philosophy to their team, and focus on people first, which in turn will lead to a better business.
Learn more about Andrea’s lessons learned from her experience at Techstars Boulder program in this episode of Crossing Borders.
Andrea Baba is helping the fitness industry transform its services to meet the demands and consuming habits of today’s customers. Fitco enables fitness center owners to digitize their businesses to better connect with their communities online.
Outline of this episode:
[1:50] - About Fitco
[2:30] - The entrepreneurial mindset
[5:00] - Solving her own problem
[6:29] - Focusing on a tech tool
[7:49] - Catalysts of change in the Peruvian ecosystem
[12:44] - Techstars Boulder Accelerator
[17:46] - Advice for going through an accelerator
[21:13] - Responding to the lockdown
[24:43] - Being a female founder in Latam vs. the US
[27:43] - Books, blogs, & podcast recommendations
[28:52] - Advice to Andrea’s younger self
[30:23] - What’s next for Fitco?
Resources & people mentioned:
- Andrea Baba
- Alexander Mayor
- Fitco
- UTEC Ventures
- Techstars Boulder Accelerator
- Brad Feld
- David Brown
- Culqi
- Crehana
- Books: Lean In: Women, Work and the Will to Lead, From Impossible to Inevitable, The Sales Acceleration Formula, Hacking Growth, Venture Deals
Mariana Castillo, Ben & Frank: Direct-to-Consumer Eyewear for the Mexican Market, Ep 124
Mariana Castillo believes that the eyewear shopping experience in Mexico is broken. It’s generally reduced to an impersonal exchange that only considers the basic optical measurements, rather than catering the product to the customer’s style and personality.
Mariana is the co-founder and co-CEO of Ben & Frank, a direct-to-consumer eyewear brand that seeks to transform the way Mexicans buy eyewear by providing fashionable and affordable options.
I sat down with Mariana to talk about why an internship at ALLVP played a key role in her decision to become an entrepreneur, the lessons she learned from working at Mexico’s Central Bank, and the insights she’s gained about the direct-to-consumer category in Latam; from building a brand to fundraising. And lastly, Mariana shares advice on how to remove biases in the ecosystem to empower female founders.
A career-defining moment at ALLVP Before discovering her entrepreneurial journey, Mariana immersed herself in the investment world. She learned about venture capital and realized that she wanted to get involved with early-stage investment and started an internship at ALLVP, a VC firm based in Mexico City, for three months. Fascinated by the ability of some of the startups she worked with to execute ideas quickly, Mariana decided she wanted to pursue a career that would involve entrepreneurship in any way.
Listen to this episode of Crossing Borders to learn more about Mariana’s lessons learned from her early days at Mexico’s Central Bank to her time at ALLVP.
Redefining what it means to be a “four-eyes” Through Ben & Frank, Mariana has built a strong eyewear brand. She explains that consistency is key to building a successful brand in Mexico. That means that everything related to the brand reflects the same values, mission, and vision. From the unboxing experience to how a company reacts when they’ve made a mistake are all part of what makes a brand. At Ben & Frank, Mariana explains that they are very intentional about the language they use. For example, they’ve chosen to reclaim what it means to be a “four-eyes”.
Learn more about building a successful brand in this episode of Crossing Borders.
The untapped potential of direct-to-consumer companies in Latam Mariana explains that direct-to-consumer brands caught on quickly in Mexico. Customer centricity is what traditional retailers in Mexico lack, and what direct-to-consumer brands excel at providing. As consumer habits change from generation to generation, companies will need to adapt to the demands of customers that are more conscious about the value for money and what a brand stands for.
Check out this episode of Crossing Borders to learn more about the opportunities and the barriers that exist in the retail industry in Mexico.
Mariana Castillo is transforming the meaning of “four eyes” in Mexico to be synonymous with cool and fashionable with Ben & Frank. The startup is breaking the barriers of the traditional retail industry and unleashing the potential of direct-to-consumer brands for the digital age.
Outline of this episode:
- [2:10] - About Ben & Frank
- [2:36] - Traditional retail experience for eyewear in Mexico
- [3:55] - Mexico roots, nomadic upbringing
- [4:53] - Entrepreneurial journey
- [5:40] - Internship at ALLVP
- [7:38] - Lessons learned at the Central Bank and ALLVP
- [8:36] - Why tackle this specific problem?
- [9:42] - Ben & Frank’s inflection point
- [12:26] - Building a brand in Mexico
- [13:58] - Insights on Latam’s direct-to-consumer category
- [15:14] - Competing with traditional retailers
- [18:13] - Expanding Mexican direct-to-consumer brands
- [19:05] - Advice to Mariana’s younger self
- [19:33] - Fundraising for a direct-to-consumer startup
- [24:14] - Being a female founder in Latam
- [27:26] - Avoiding biases in the VC ecosystem
- [30:00] - What’s next for Mariana and Ben & Frank?
Resources & people mentioned:
- Mariana Castillo
- Ben & Frank
- ALLVP
- Federico Antoni
- Fernando Lelo de Larrea
- YCombinator
Claire Díaz-Ortiz, Magma Partners: Investing in Latin American Female Founders, Ep 123
Claire Díaz-Ortiz has been passionate about investing in women and supporting the underrepresented since her days at Stanford, where she completed an undergrad in Feminist Studies and History. However, it wasn’t until later in her career as an angel investor, and now as a VC Partner, that she truly understood the business case for investing in women.
Having spent the last 6 months working in stealth mode, Claire joined Magma Partners as a Partner to lead both Southern Cone and Brava, an initiative that seeks to invest in more Latin American female founders. Brava is committed to investing in at least 20 female-founded Latin American startups through Magma’s fund III.
I sat down with Claire to officially welcome her on the team and talk about the importance of investing in women and doing business in emerging markets. We touch on topics of privilege and the biases that exist in the world that are reflected in the venture capital industry. We also discuss Claire’s career trajectory, from starting a nonprofit organization in an orphanage in Kenya, to becoming one of Twitter’s early employees and famously ‘getting the Pope on Twitter’. Claire also talks about her decision to move to Argentina where she has been living for the past ten years.
Being a “wandering delinquent” After graduating from Stanford, Claire says she spent the next 5 years living her life like– what her father jokingly called– a “wandering delinquent”. In her first year, she moved to a town in Mexico and started building an international life that would lead her to an orphanage in Kenya. There, she started a non-profit called Hope Runs. In hindsight, the difficulties she encountered while trying to start an organization has helped her empathize with LatAm founders and understand the resilience that is required to start a business in an emerging market.
Learn more details about this nomadic chapter in Claire’s life in this episode of Crossing Borders.
“The Woman who got the Pope on Twitter” Right at the time Claire was blogging about her nonprofit on Blogger.com, the website was incubating what would become Twitter. A series of events and encounters landed Claire an internship at Twitter which would extend to a career of over 5 years at the company. When she entered Twitter, there were a little over 50 employees, and when she left, the headcount was at 5000. Undoubtedly, one of Claire’s career highlights was working with the Vatican and getting the Pope on Twitter.
Check out this episode of Crossing Borders to learn about Claire's experience working with the Vatican through Twitter.
The business case for investing in women It was later on in Claire’s career that she started to think about investing in women from a business standpoint rather than solely from a social impact perspective. In the last five to ten years, she’s seen a wave of studies stating that teams with female founders or female co-founders in the C-suite end up performing better. For instance, studies have found that female founders generate 2.5X more revenue per dollar than their male counterparts. The data also shows that despite the obvious business case for them, we are not investing in enough women.
Listen to this episode of Crossing Borders to learn more about why diversity on a team can be beneficial for a business and the statistics that back that claim.
We are so excited to have Claire Díaz-Ortiz join Magma Partners as Partner and Head of Brava. Her passion for investing in the underrepresented and her advocacy for female founders makes her the perfect fit for Brava.
Outline of this episode:
- [2:00] - Claire joining Magma
- [2:34] - Brava’s first four investments
- [3:28] - About Brava
- [4:25] - The business case for investing in women
- [11:15] - Magma’s diverse team
- [12:30] - Working with the Vatican
- [20:55] - Lessons learned from running a nonprofit
- [24:40] - Investing in US versus LatAm
- [27:12] - Books, blogs, & podcast recommendations
- [28:22] - Advice to Claire’s younger self
- [29:37] - What’s next for Brava + Magma Partners?
People & resources mentioned:
- Claire Díaz-Ortiz
- Brava
- Magma Partners
- Hope Runs
- Jeffrey Skoll
- Skoll Scholarship
- Blogger.com
- Biz Stone
- Books: The Way of Transition, Slowing Down to the Speed of Life
- Maren Thomas Bannon
- January Ventures
Dan Green, Gunderson Dettmer: Legal Structures for Startups in Latin America, Ep 122
An avid traveler from a young age, Dan Green’s relationship with Latin America stretches all the way back to his childhood trips to Mexico and Ecuador and visits from an aunt who dazzled him with stories about doing business in Chile. Driven by his passion for the region, Dan was set on becoming a link between the US and Latin American markets.
In 2004, Dan started practicing law in Silicon Valley, immersing himself in the venture capital and startup world. Today, Dan is a corporate partner at Gunderson Dettmer, a law firm that focuses on global venture capital and emerging technology and has been practicing in and around Latin America for over 15 years.
I sat down with Dan to talk about how his trip to Latin America during his 20s inspired him to focus on building a bridge between Silicon Valley and the region, supporting top-level entrepreneurs like the current founders of Cornershop. We also discuss the advantages and disadvantages of different corporate structures for entrepreneurs starting their own business.
The mirror image of California through an atlas Growing up in California, Dan’s aunt had told him stories about Chile from her ventures selling sonar fishing equipment to fishermen around the world. His aunt’s stories had intrigued him enough to choose Chile in his third year of undergrad at Stanford to complete a study abroad program. There, he fell in love with his future wife as well as with the country, the culture, and the people of Latin America.
Listen to this episode of Crossing Borders to learn more about how this chapter in his life inspired him to follow a career that would allow him to continue connecting with Latin America.
‘The Valley’ awakening to Latin America Over the years, Dan has witnessed how the Latin American tech landscape has transformed. From broadband connection to access to mobile phones and a rising trust in eCommerce. The first investments, which are always the hardest when breaking into a market, took place in Brazil. According to Dan, these investments in Brazil unlocked the rest of the region for foreign investment.
Check out this episode of Crossing Borders to learn about the first investments that paved the way for other investors in the Valley.
An emerging standard in legal structures for business in Latam One of the most important steps in starting a business is deciding on a legal structure. According to Dan, if done correctly this decision can save millions of dollars in terms of taxes and costs down the road. However, the answer is not always clear. This is especially true in the initial stages of a business when there is still so much uncertainty revolving around questions like how much you are going to raise or what your operating or exit path is. Dan explains that the more clarity you have about these questions, the more guidance you will be able to receive.
Learn about the advantages and disadvantages of different legal structures in this episode of Crossing Borders.
Dan Green is helping high impact businesses grow in Latin America and the US, leveraging his legal expertise and connections in Silicon Valley to become a bridge builder for the best entrepreneurs and investors in both regions.
Outline of this episode:
- [1:32] - About Gunderson Dettmer
- [2:16] - From Silicon Valley to Latam
- [6:59] - Changes in the ecosystem
- [11:08] - What corporate structure should you have?
- [19:19] - What you need to know about Delaware Corporations
- [22:16] - Setting up in Cayman
Resources & people mentioned:
- Dan Green
- Gunderson Dettmer
- Needish
- ClanDescuento
- Peixe Urbano
- Santi Subotovsky
- Rodolfo Gonzalez
- Kaszek Ventures
- Monashees
Mandeep Rai, The Values Compass: What 101 Countries Teach Us About Purpose, Life, and Leadership, Ep 121
Mandeep Rai’s meeting with a Sikh person in the middle of Panama during her sabbatical across Latin America led her on a journey to not only start to understand that the tropical country was a cultural melting pot, but was also a pivotal moment on her journey to write a book titled “The Values Compass”, which talks about the power she discovered from understanding the values and cultures of different countries and how we can learn from them to lead a more fulfilled life.
She’s only an international best-selling author, but also an investor, mentor, and broadcast journalist for the BBC World Service. Mandeep started her career in investment banking at JP Morgan, and has worked for the United Nations, the European Commission, and several grassroots NGOs.
I sat down with Mandeep to talk about how a short trip to Latin America served as inspiration for her international best-selling book. We also discuss the impact of value-driven businesses and how startup founders and investors can see eye to eye in terms of the values that they look for in the other.
“My secret aim was to be a Cuban in Cuba” During her sabbatical, Mandeep traveled all over Latin America, enrolled in Spanish classes, learned to dive, and found her place in the most unexpected corner of the world. As she immersed herself in the cultures, she was met with levels of diversity and a celebration of life she had never seen anywhere else before. As she made her way along the Southern continent, she was inspired to document the variety of attributes and values that she found in each country and city.
Listen to this episode of Crossing Borders to learn more about the values Mandeep found during her travels across the globe.
Building a business from a values standpoint Mandeep worked in venture capital firms before and after completing her studies at business school, and has several years of experience working in startups and advising their founders. One of her major observations is that investors and founders find that value-driven businesses have a greater chance of success. For investors, this means a greater return on their investment in startups that align with their values.
Learn more about how to build a value-driven organization in this episode of Crossing Borders.
Inspired by Peru’s positivity Investors have to consider several factors before betting on a company, with one of the most important variables– that can sometimes be overlooked– being attitude. Mandeep explains that she was blown away by Peru’s optimism, which was reflected in their use of language and way of thinking. She learned from Peruvians that there lies great power in being able to transmit positivity within a team, startup, or organization.
Check out this episode of Crossing Borders to hear Mandeep elaborate on her choice of values for Chile and Colombia in her book.
Mandeep Rai gathers important lessons and insights in her book about how we can lead a more fulfilled life if we focus and make decisions based on our values. This mindset starts at a personal level but can achieve amazing things if applied to the way we think about building startups, organizations, or investing.
Outline of this episode:
- [3:31] - About “Values Compass”
- [5:16] - Motivation for travelling to +150 countries
- [6:27] - Becoming a Cuban in Cuba
- [9:45] - Pivotal moment in Panama
- [11:10] - Value-driven businesses
- [14:05] - Tips on sustaining values in high growth companies
- [16:36] - Discovering a startup founders’ values
- [17:45] - Asking employers about their values
- [18:36] - Latin American values: Chile, Peru, Colombia
- [24:15] - Advice to Mandeep’s younger self
Resources & people mentioned:
- Mandeep Rai
-
- The Values Compass
Santiago Pineda, Mensajeros Urbanos: Transforming Latin America’s Last-Mile Delivery Industry, Ep 120
Santiago Pineda started his entrepreneurial journey straight out of highschool at 18 years old. He would spend hours at his university’s library learning how to code to launch his company’s website. Originally from Colombia, where the floral sector represents one of the main industries for the country, Santiago decided to start an e-commerce for flowers during his university years.
After his first experience as a founder, Santiago was hooked on the idea of building a big company. Today, he is the CEO of Mensajeros Urbanos, a last-mile logistics platform that is using technology and a diverse collaborative logistics network to bring fast low-cost deliveries to Latam.
I sat down with Santiago to talk about his early entrepreneurial beginnings, followed by his experience founding a stock simulator with his brother, to eventually joining Mensajeros Urbanos. We also discuss the opportunity that the last-mile logistics industry represents in Latam and Santiago identifies Mensajeros Urbanos’ inflection points.
Getting acquired after Startup Chile ‘11 Following a significant financial loss in Colombia’s Forex market, Santiago discovered his next business opportunity. He decided to start a stock simulator to promote financial education. First, he did it for the Colombian market. And after two years of good traction, he decided to start another stock simulator with his brother, focusing on the Latam market. They participated in Startup Chile, and after five years, their company got acquired.
Learn more about the process behind Santiago’s first exit in this episode of Crossing Borders.
Joining Mensajeros Urbanos Santiago recalls the lessons he learned from joining Mensajeros Urbanos and what that decision entails for the founders. Considering the work and sacrifices founders have to make to start a company, introducing new people can be a difficult decision to make. As founders themselves, Santiago and his brother recognized the humility and maturity of the Mensajeros Urbanos’ team to allow them to join.
Find out how Santiago and his brother helped Mensajeros Urbanos gain traction and became CEO and COO, respectively, of the company.
The power of networks Santiago explains that at Mensajeros Urbanos, they believe that the decision to expand to another market, even if it’s just to another city, does not make sense if your network hasn’t expanded first. After focusing on 10 Colombian cities, Mensajeros Urbanos decided to expand into Mexico with the help of one of their clients in Colombia.
Listen to this episode of Crossing Borders, to learn more about how Santiago and his team evaluate decisions to expand into new markets.
Santiago Pineda is using his experiences as an entrepreneur to help others build their visions into successful businesses. He is tackling the needs of the last-mile delivery industry in Latam with Mensajeros Urbanos’ solution.
Outline of this episode:
[1:35] - About Mensajeros Urbanos
[3:06] - Creating a marketplace for flowers in Colombia
[4:57] - An 18-year old entrepreneur
[5:52] - Winding down a business as a university student
[6:34] - Starting over again
[7:45] - Lessons learned from exiting Starbull
[10:18] - Mensajeros Urbanos’ story
[11:35] - Introducing new C-Levels to a company
[13:12] - Why logistics and last-mile deliveries?
[14:33] - Inflection point for Mensajers Urbanos
[15:55] - Looking into other markets
[17:51] - Growth versus positive unit economics
[19:48] - Advice to Santiago’s younger self
[20:21] - Top lessons learned in Santiago’s entrepreneurial journey
[21:27] - Books, blogs, and podcast recommendations
[22:23] - Next steps for Mensajeros Urbanos
Resources & people mentioned:
- Santiago Pineda
- Mensajeros Urbanos
- GainBull
- StarBull
- Books: High Growth Handbook, Blitzscaling
Matías Muchnick, NotCo: Building The Future of Food From Chile, Ep 119
Matías Muchnick left the investment banking world in pursuit of a solution that would bring sustainability to the broken food industry. He could not have predicted that a couple of years later he would be training an algorithm to understand humans’ taste preferences to create a plant-based mayonnaise that would appeal to the mass market.
In 2015, Matías cofounded NotCo, a food tech company that is using AI to take animals out of the equation in the production of milk, cheese, eggs, and meat. Just eight months after launching their first product in 2017, NotCo achieved 8% market share of the total mayo category in Chile in the first stores they launched in, a country that has ranked third in mayo consumption per capita in the world.
I sat down with Matías to talk about his experience in the investment banking world, starting a vegan food startup in 2012 and, ultimately, his decision to leave the company. We also discuss his transformative experience in the US where he connected with his current co-founders, then getting accepted into IndieBio, and eventually raising money from Kaszek Ventures and Jeff Bezos. Matías also talks about his most recent round of funding and preparations for launching in the US.
“R&D in the food industry was operating on coal” Inspired by other entrepreneurs’ stories, Matías left his job as an investment banker and started thinking about what he wanted to do next. He had always been curious about the food industry but didn’t fully understand it. As a finance major, he likened it to the subprime crisis of 2008, where there was a disconnect between companies and customers who were buying and selling products they didn’t understand. At the time, the consumer was also changing, demanding a more sustainable way of producing food. Matías realized that what the food industry needed was disruption.
Learn more about why Matías decided he wanted to disrupt the food industry in this episode of Crossing Borders.
Cutting animals out of the equation When Matías realized that the next step to advance his vision was to invest in technology, he immersed himself in the world of food, science, and entrepreneurship. During his postgraduate program at UC Berkeley, he became close to the biotech department where he learned about how the pharmaceutical industry was innovating using machine learning. That’s when Matías started questioning how these technologies could be applied to the food industry. He started surrounding himself with extremely qualified scientists including his co-founders Karim and Pablo, who were curious to explore this uncharted territory in the food space.
Listen to this episode of Crossing Borders to learn more about how Matías formed his founding team and got started with NotCo.
Breaking the biotech barrier in Latam’s VC industry Matías and his co-founders had been bootstrapping NotCo when they received a call from Ryan Bethencourt, the former Program Director at IndieBio. Ryan offered them a waiver to get into the prestigious biotech accelerator, which they hadn’t even applied for because they thought they had zero chance of getting in. Under IndieBio’s spotlight, NotCo became the first startup to receive a term sheet before Demo Day, and got the attention of Kaszek Ventures, who instantly became interested in their industry and invested in their Series A and subsequent rounds.
Find out more about NotCo’s growth trajectory and milestones they have achieved over the years in this episode of Crossing Borders, including becoming the first Latam startup Jeff Bezos invested in.
Matías Muchnick is revolutionizing the way in which we think about food through NotCo’s vision for food production that is sustainable and efficient. The next generation of consumers is already changing, and Matías is making sure that the food industry continues to innovate to accompany that change.
Outline of this episode:
- [2:16] - About NotCo
- [7:46] - Becoming an entrepreneur
- [14:24] - Reaction of friends and family
- [16:22] - The breaking point with Eggless
- [19:50] - NotCo’s inflection point
- [25:07] - How NotCo raised money from Jeff Bezos and Top VCs
- [31:14] - Next steps after raising $85M in a Series C
- [34:55] - Advice to Matías’ younger self
- [36:37] - Books, blogs, and podcast recommendations
Resources & people mentioned:
- Matías Muchnick
- Karim Pichara
- Pablo Zamora
- Eduardo Bendek
- NotCo
- Eggless
- Documentaries: Cowspiracy, What the Health
- Impossible Foods
- Beyond Burger
- UC Berkeley’s Sutardja Center for Entrepreneurship & Technology
- Harvard Business School
- Stanford
- IndieBio
- Ryan Bethencourt
- Kaszek Ventures
- The Craftory
- Elio Leoni Sceti
- Jeff Bezos
- L Catterton
- Future Positive
- Books: Hard Things About Hard Things
Gustavo Guida, Alloy Card: Starting Companies in Brazil since 2000, Ep 118
Gustavo Guida has been starting companies in Latin America before it was cool. He founded his first company in 2000, during Brazil’s tech bubble. Bondfaro was a price comparison website which, after merging with Buscapé in 2006, became the largest of its kind in Latin America. Since then, Gustavo has continued founding companies including HelpSaude, and most recently, Alloy Card.
As co-founder and co-CEO of Alloy Card, Gustavo is bringing automation to the world of finance. The fintech startup offers consumers a credit card that uses automation to help people have more control over their finances. Alloy Card was also part of 500 Startups’ recent batch and is set to officially launch in the US first.
I sat down with Gustavo to talk about his experience starting a company in Brazil’s tech bubble, then merging with Buscapé, and getting acquired by Naspers. We also discuss his decision to continue starting companies after his first exit, and why he chose to launch Alloy Card in the US first.
Making it big Fresh out of university and seven months into his first job, Gustavo was inspired by all the companies that were popping up in Brazil during the dotcom bubble. He decided he wanted to follow their example and build something big. He jumped into the opportunity to start his first company and even got his former employers curious and ended up pitching his business to them.
Listen to this episode of Crossing Borders to learn more about Gustavo’s experience starting a company and raising money during the tech bubble in Brazil.
The dot com crash Latin America style When the bubble burst, Gustavo almost had to declare bankruptcy with Bondfaro. With $30K in the bank, one of his investors advised him to spend it on marketing as a last attempt to save the company. However, as CEO, Gustavo was not convinced by this strategy. Instead, he decided to stick it through and start cutting down on expenses. Gustavo explains that they became cash flow positive by force.
Find out how Bondfaro became profitable after almost declaring bankruptcy in this episode of Crossing Borders.
Zero-to-one moment
Gustavo explains that he was extremely happy with his first exit. Even though he could have easily stopped after reaching this milestone, Gustavo has kept adding more chapters to his entrepreneurial journey. He recalls that as a kid, he was very inquisitive and enjoyed doing mental exercises and problem solving. Not much has changed since then, as he continues to identify problems, such as market inefficiencies, and find solutions for them.
Learn more about what motivates Gustavo to continue on this journey in this episode of Crossing Borders.
Gustavo Guida is passionate about entrepreneurship and developing solutions to help others live better lives. Over the years, he has demonstrated this passion through the successful companies he has led. With his latest venture, Alloy Card, he is helping people have better control of their finances and improve their quality of life through a customizable solution.
Outline of this episode:
[1:55] - About Alloy Card
[2:49] - Becoming an entrepreneur
[3:57] - Brazil’s tech bubble
[6:20] - Why price comparison?
[7:28] - Crashing and bouncing back
[10:17] - Merging with Buscapé
[15:21] - After first exit
[19:24] - Inspiration for Alloy and first steps
[23:44] - Books, blogs, & podcast recommendations
[25:25] - Advice to Gustavo’s younger self
[27:11] - What’s next for Alloy?
Resources & people mentioned:
- Gustavo Guida
- Renato Steinberg
- Alloy Card
- Naspers
- Buscapé
- Bondfaro.com
- Books: Sapiens: A Brief History of Humankind, 21 Lessons for the 21st Century
Podcast: The Daily, Pivot
Christine Kenna, IGNIA: Building the Foundation of Mexico’s Venture Capital Industry, Ep 117
Christine Kenna could not have predicted that a consulting gig in Mexico City would lead her into building an entire career in investing in Latin America. Although Christine is originally from Palo Alto, she has been working and investing in Mexico since 2006. Over the years she has been a huge proponent of women investors and entrepreneurs creating initiatives like Women in Private Equity and Venture Capital in Mexico and Mujeres Invirtiendo.
Now, Christine is Partner at IGNIA, a venture capital firm based in Mexico City where she invests in companies that are serving the emerging middle class of the region. They focus on companies that are expanding into LatAm or are based in LatAm and are growing within the region.
I sat down with Christine to talk about how she ended up in Latin America and how her perception of venture capital completely changed when she started working at IGNIA. We also discuss how the industry in Latin America has changed since she arrived in 2006, and the benefits of being a woman in the venture capital and tech industries.
Getting into Venture Capital Growing up, Christine had never pictured herself working in venture capital. She was actually put off by common misconceptions of the industry. However, she was always very intrigued by what was happening in Silicon Valley in terms of growth and innovation. She quickly became fascinated by how high growth startups could change lives, but only saw herself on the operating side for the rest of her career. That is, until she met IGNIA.
Listen to this episode of Crossing Borders to find out what it was like working with IGNIA during the early days of LatAm’s venture capital ecosystem.
What it takes to be an investor in LatAm Christine explains that the opportunity in Latin America in 2006 was big. But with today’s infrastructure, the opportunity is even bigger. WIth 70% internet penetration, it’s one of the largest global markets for internet users. International investors are starting to see this value in the region and its consumers. However, Christine stresses that investors coming in to the region have to be willing to be on the ground and put in the extra work in order to help local entrepreneurs turn their vision into incredible companies.
Learn more about how the ecosystem has changed over the years and what it takes to be an investor in Latin America in this episode of Crossing Borders.
Why being a woman in VC and tech in LatAm can be an advantage Women entrepreneurs and investors in LatAm often face challenges that their male counterparts wouldn’t. However, Christine points out that there are many advantages to being a woman in this industry as well. Because there are so few women in the sector, it’s easy to stand out and be listened to anytime she walks into a boardroom. Also as an investor, women are able to provide unique perspectives to inform better decisions, and create better returns.
Find out more about the benefits of being a woman in Latin America’s tech and VC industry in this episode of Crossing Borders.
Christine Kenna gets the greatest amount of satisfaction at IGNIA when she, along with her team, are helping entrepreneurs and their companies grow as much as possible in their journeys. Christine has played an enormous role in building Mexico’s network of female entrepreneurs leading various initiatives dedicated to providing support and training to women so that they can unleash their true potential.
Outline of this episode:
- [1:35] - About IGNIA
- [4:45] - A career in investing in LatAm
- [8:37] - Changes in the ecosystem
- [12:56] - The LatAm entrepreneur
- [14:27] - Advice to entrepreneurs raising money in LatAm and abroad
- [17:04] - Being a woman in VC and tech in LatAm
- [22:11] - Advice to Christine’s younger self
Resources & people mentioned:
- Christine Kenna
- IGNIA
- Michael Chu
- Alvaro Rodriguez Arregui
- Omidyar Network
- Women in Private Equity and Venture Capital in Mexico
- MBA Mujeres de México
- AMEXCAP
Deepak Chhugani, Nuvocargo: Using software to modernize trade between Mexico and USA, Ep 116
Deepak Chhugani’s multicultural background was considered rare and unexpected in Guayaquil, Ecuador, where he grew up most of his life. He was born in Kenya to Indian parents who migrated to Ecuador in their late 20s. Logically, after studying at university in the US, Deepak wanted to find a way to connect all of these experiences. When he worked in investment banking in New York and Mexico, he saw the intersection that existed between the US and Latin America. Specifically, in trade with Mexico– the US’ largest trading partner.
Coming from a family with a background in logistics, Deepak founded Nuvocargo, a digital freight forwarder and licensed customs broker that helps companies move physical goods between the US and Mexico.
In this episode, Deepak shares stories about growing up in Ecuador as an Indian immigrant, his experience in investment banking in the US and Latin America, and the reason for pivoting into Nuvocargo after going through YCombinator. We also delve deep into the complexity of carrying out international trade and how Nuvocargo’s solution helps to streamline those processes.
The Lobby When Deepak was starting his first company, he stood firm on the idea of working on a solution to a problem that affected him personally. At the time, one of his greatest accomplishments had been getting a job in investment banking despite having all the odds against him for that position. His first startup, the Lobby, originated from that experience, and was the vehicle that got him into YC as a single non-tech founder. Although he didn’t follow through with the model, it taught him valuable lessons on what it takes to be an entrepreneur.
Learn more about Deepak’s major takeaways from his first startup in this episode of Crossing Borders.
Investors’ reaction to pivoting It takes a lot of courage to scrap a fully-fledged business model and start over. Even more so when investors are already involved. Deepak did just that when he decided to pivot his first startup to what is today Nuvocargo. Even though some investors pulled out of the deal, the ones that stayed did so because they had invested in the team. Some of them even tripled their investments with the new business model. Deepak explains that how investors react in these situations can speak volumes of their character.
Listen to this episode of Crossing Borders to learn more about Deepak’s pivoting process and the reaction from investors.
“Everyday there are about 15K-20K trucks crossing the border” Deepak explains that most people are unaware of the complexity involved in international trade, despite it being one of the biggest industries in the world. Transporting goods across borders is a highly complex process that can involve seven to eight different stakeholders, different currencies, laws, and languages. It’s an operation that requires a lot of knowledge and efficiency. Nuvocargo helps coordinate that complexity, and digitizes processes that oftentimes are still relying on analogue systems.
Find out in this episode of Crossing Borders how Deepak is bringing innovation to an industry that has yet to jump on the digital transformation other industries are already experiencing.
Deepak Chhugani is at the forefront of innovation in the trade and logistics industry in Latin America. He is leveraging his multicultural background, expertise on logistics, and passion for the region to bring transparency and visibility to trade between the US and Latin America.
Outline of this episode:
- [1:46] - About Nuvocargo
- [2:40] - A multicultural upbringing
- [4:15] - An Indian immigrant in Ecuador
- [6:50] - Choosing entrepreneurship
- [8:55] - Pivot into Nuvocargo
- [17:40] - Investing in the team
- [20:36] - Deepak’s unfair advantage
- [23:03] - Import-export process in US-LatAm
- [27:00] - Trade market size
- [29:16] - Nuvocargo’s fundraising process
- [32:50] - Books, blogs, & podcast recommendations
- [34:14] - Advice to Deepak’s younger self
- [35:44] - What’s next for Nuvocargo?
Resources & people mentioned:
- Deepak Chhugani
- Nuvocargo
- The Lobby
- YCombinator
- Magma Partners
- ALLVP
- Books: The Disunited Nations
- Blogs: AVC
- Podcasts: YCombinator, Dynamo
Martin Schrimpff, Zinobe: Supporting Underserved SMEs with Fintech, Ep 115
Almost 20 years ago, after finishing his engineering degree at the University of Edinburgh, Martin Schrimpff jumped at the opportunity to move back to his native Colombia to set up his first software development company with a friend. That company, Sirius, would kick off Martin’s entrepreneurial journey and lead him to found Payu, a payments business with clients like Facebook, Microsoft, Uber, Airbnb, and Google.
Becoming an entrepreneur was always at the back of Martin’s mind from a young age, whether it was selling chocolate or setting up small casinos at school, he knew he wanted to have his own business. Over the years, Martin has become an expert in the online payments industry and has founded several successful tech companies including Sirius, Payu, Zinobe, and most recently Centeo.
In this episode, I sat down with Martin to talk about his multicultural background, his experience financing his second company, and eventually founding the leading fintech in Colombia for consumer and SMB lending, Zinobe. We also discuss his latest endeavor, Centeo, a startup in Mexico that specializes in vendor finance, and his passion for helping other entrepreneurs get started on their journey.
Starting a multimillion-dollar company Martin explains the main differences between building a company that provides a service versus one that provides a product. There are many reasons why a business can fail when developing a product, one of them being the time-consuming nature of the process. It can take many years before you find the right product-market fit, which ultimately can be very costly. Martin adds that there are other ways of financing a company besides venture capital, and his companies are proof of the success that can come from these efforts.
Find out how Martin financed his companies at a time when venture capital wasn’t as available as it is today in Latin America in this episode of Crossing Borders.
Make-or-break moment Payu received its first big blow after discovering that what appeared to be a growth in sales was actually the result of a scam. This discovery sent a shockwave throughout the company, and created a huge loss in revenue, with most people suggesting they close the business. Instead, Martin and his co-founder decided to take this moment as an opportunity to dive deep into learning more about fraud prevention and improving their product.
Listen to this episode of Crossing Borders to learn more about this critical moment in the history of Payu.
Acquiring the acquirers In 2008, an Argentine company, DineroMail, approached Martin to acquire his company. However, the deal never ended up happening, which in this case, was another wake-up call for Martin and his team. Realizing what they had almost lost, they had a complete change of mindset and started being more aggressive in growing the company and raising money. Over a year later, in a complete turn of events, Martin and his partner acquired DineroMail.
To learn more about the company’s shift in mentality and how they acquired the Argentine company, listen to this episode of Crossing Borders.
Martin Schrimpff is a true serial entrepreneur, with one success after another. He is passionate about leveraging his years of experience in entrepreneurship to help others get off the ground and build a successful business. Martin’s extensive knowledge of the online payments industry makes him one of the best in the field to facilitate credit to Latin Americans.
Outline of this episode:
- [2:12] - About Centeo
- [2:56] - Growing up in Colombia
- [3:28] - Choosing to be an entrepreneur
- [4:11] - Culture shocks in Latin America
- [5:34] - First business: Sirius
- [6:48] - Advice to entrepreneurs on developing a product
- [9:48] - Starting a cashflow business
- [11:06] - Payu’s milestones
- [13:35] - On raising money after bootstrapping
- [15:15] - Expanding Payu
- [16:26] - Starting Zinobe
- [20:26] - Next project: Centeo
- [22:16] - Lessons learned as an angel investor
- [24:18] - Advice to Martin’s younger self
- [26:12] - What’s next for Zinobe and Centeo?
Resources & people mentioned:
-
Tarek El Sherif
-
José Velez
- Centeo
- Zinobe
- QED Investors
- Payu
- DineroMail
- DeRemate
- Sirius Information Technology
Florence Frech, Leal: Bringing Data-Driven Customer Engagement to Latin America, Ep 114
Despite coming from a family of entrepreneurs in El Salvador, Florence Frech hadn’t considered being one herself until she met her current co-founder while completing an MBA in Chicago. Up until that point, she had been building a stable career working at banks in the US and El Salvador. One startup competition later, Florence was hooked.
In Latin America, where 50% of credit card consumers are completely inactive, engaging with and retaining customers can be a challenge. That’s why Florence and her co-founder, Camilo Martinez, decided to start Leal, a customer engagement platform that helps B2C customers truly understand who their customers are through loyalty programs.
I sat down with Florence to talk about her upbringing in El Salvador and learning about entrepreneurship over the dinner table with her family, and how her first failure as a startup turned into a valuable life lesson. We also discuss why customer engagement is a huge opportunity in Latin America and Florence gives advice to entrepreneurs raising money as a seed-stage startup.
“Retailers in Latam have failed to prioritize understanding consumer needs” Florence did have one condition before fully diving into the entrepreneurial world. If she was going to take the big leap, it had to be in an industry she really understood. During her time working as an advisor for the retail industry at the bank, Florence had noticed that companies were splurging money on massive marketing campaigns that were not necessarily measurable or effective. This lack of focus on data-driven decisions inspired Florence to start Leal.
Listen to this episode of Crossing Borders to gain more of Florence’s insights on customer engagement in Latin America.
Falling in love with a problem Florence and Camilo were firm on truly understanding the industry and the market they were getting themselves into. In the beginning, they didn’t hire developers or make an MVP. Instead, they spent three months in Bogota talking to over 200 retailers to learn everything they could about the pain points of customer engagement in Colombia. They realized that the opportunity was way bigger than they had imagined.
Learn more about how seeing the problem firsthand was an inflection point for Florence and her co-founder in this episode of Crossing Borders.
A two-way street Seeking investment in Latin America as a seed-stage startup can be more challenging than in the US. From the investor perspective, it’s often seen as a riskier venture, therefore expectations are higher. In order to grab their attention, Florence explains that you need to show you have traction. However, she also strongly advises that interests from both parties be aligned from the very start to avoid long-term damage.
Check out this episode of Crossing Borders to hear more advice from Florence on raising money in Latin America.
Florence Frech is changing the way businesses in Latin America engage with their customers. Leal’s data-driven approach helps businesses learn how to better allocate their resources and make the best decisions that truly reflect their clients’ needs.
Outline of this episode:
- [1:37] - About Leal
- [3:11] - Customer engagement in LatAm
- [6:33] - Growing up in El Salvador
- [9:05] - Becoming an entrepreneur
- [13:12] - Leaving a stable job
- [15:04] - Florence’s inflection point
- [17:52] - Understanding the problem first
- [20:04] - The initial product
- [22:25] - Leal’s use cases
- [25:17] - Raising money
- [26:37] - Advice to other entrepreneurs
- [29:31] - Books, blogs, & podcast recommendations
- [32:00] - Advice to Florence’s younger self
- [33:23] - What’s next for Leal?
Resources & people mentioned:
- Florence Frech
- Leal
- Hugo
- Book: Shoedog
Gonzalo Galindo, Cemex Ventures: Bringing Innovation and Strategic Investments to the Construction Industry, Ep 113
The construction industry is known for being slow to adopt new technologies. However, Gonzalo Galindo seeks to break that barrier and bring innovation to an industry that is commonly considered to be monolithic and outdated.
Currently, Gonzalo is the Head of Cemex Ventures, the venture capital arm of Cemex, a Mexican company and a global leader in the building materials industry. Through this initiative, Gonzalo is helping Cemex prepare for the future by investing in startups that are developing disruptive technologies related to the construction industry.
I sat down with Gonzalo to talk about his transition from a more traditional business background to working in a disruptive industry like venture capital. He also gives advice to younger entrepreneurs on how to approach investment opportunities with corporations, and shares lessons he’s learned from working with startups. We also discuss Cemex Ventures’ vision and what Gonzalo thinks the future holds for the construction and heavy materials industry.
A change of pace Before transitioning into Cemex’s venture capital arm, Gonzalo had over 15 years of experience working at Cemex in business development and operations. However, he admits that there was a certain level of naiveness at the beginning of Cemex Ventures. This approach in part helped him embrace the uncertainty in the venture capital world, which contrasted with the stability he was used to in the construction industry.
Learn more about Gonzalo’s journey into the venture capital world and the differences he encountered in this episode of Crossing Borders.
The meaning of a strategic investor Gonzalo emphasizes the importance of taking the time to understand the strategy behind closing an investment with a corporation. He warns that the very nature of a startup compared to that of a corporate company makes connecting the two very difficult. Together, they can achieve tremendous growth, but it will require patience.
Listen to this episode of Crossing Borders to learn more about Gonzalo’s advice on approaching corporations for investment opportunities.
Cemex Ventures’ vision When the world was hit with the 2008 financial crisis, many construction companies went into survival mode or became very conservative according to Gonzalo. As the market started to recover, some of these companies started to invest in digital technologies in order to stay relevant. Cemex hopped on this tendency, realizing that they needed to create new digital capabilities in order to evolve, and Cemex Ventures was born.
Find out how Cemex Ventures thinks about investing in this episode of Crossing Borders.
Gonzalo Galindo and his team have become the innovation eyes of Cemex, always on the lookout for the latest tech trends in the construction industry. Cemex Ventures’ strategic efforts in the global startup ecosystem will be key to helping a traditional industry keep up with the digital transformation.
Outline of this episode:
- [1:32] - About Cemex Ventures
- [3:30] - Gonzalo’s tech trajectory
- [5:10] - From tradition to disruption
- [7:00] - Advice for working with corporations
- [9:45] - Lessons learned from working with startups
- [11:26] - Cemex Ventures vision
- [16:05] - The importance of investing
- [17:31] - Cemex Ventures investments
- [19:48] - On stages and check sizes
- [21:01] - Next trends in construction
- [23:11] - Advice to Gonzalo’s younger self
- [24:40] - What’s next for Cemex Ventures?
Resources & people mentioned:
- Gonzalo Galindo
- Cemex Ventures
- Cemex
- Construction Startup Competition 2020
Pedro Góes, InEvent: Revamping the Events Industry in Latam & the US, Ep 112
Although originally from Salvador, Brazil Pedro Góes went to university in São Carlos where he met his future co-founders Vinicius Neris and Mauricio Giordano. There, Pedro was inspired by other Brazilian entrepreneurs that were providing solutions to problems that were hindering the region’s development.
Together, they founded InEvent, a SaaS startup that offers a platform to help enterprise event organizers boost revenue and provide attendees with a personalized experience. The platform’s events can range from 20 people to larger corporate events involving 44K people.
I sat down with Pedro to talk about what it was like growing up in Salvador and then starting a business during his college years in São Carlos. We also discuss his experience bootstrapping his company the first four years, his experience at YCombinator, and ultimately his decision to move the business to the US. Also, in light of COVID-19, we talk about how InEvent has adjusted to the new circumstances.
Early lessons as a serial entrepreneur Before starting InEvent, Pedro tried out several business ideas including creating an app for drinking water and a service for celebrities to send personalized messages to their fanbases. Although, these ideas didn’t find as much success as InEvent did, they were still valuable learning opportunities for Pedro. He explains that as much as having a good product is vital for a business to succeed, so is having contacts in the right channels.
Check out this episode of Crossing Borders to find out what else Pedro learned during his early years as an entrepreneur.
Starting a business in São Carlos Pedro and his partners started developing InEvent while in university in São Carlos where the startup ecosystem was only just kicking off. Looking back, considering the availability of resources such as workspaces, free Internet access, and a network of the brightest minds with incredible energy and enthusiasm, Pedro explains that universities are great places to start a business.
Listen to this episode of Crossing Borders to learn more about Pedro’s experience running a company while studying at university.
Bootstrapping InEvent During the first few years running InEvent, Pedro and his partners bootstrapped the business while seeking investment opportunities in Brazil. Aware of their company’s growth potential, they were cautious about choosing an investor until they found the right valuation with the right people to support them. It was when they received a message from a client in Silicon Valley that they opened their eyes to the opportunity of going global.
Learn more about Pedro’s decision to move to the US to create a global company in this episode of Crossing Borders.
Since the onset of the pandemic, the events industry has had to re-engineer itself to survive. InEvent has been quick to respond to the changing scenery and is helping enterprises with the digital migration of their in-person events. Pedro Góes is transforming the realm of possibilities for event organizers and attendees with his SaaS startup at a global scale.
Outline of this episode:
[1:47] - About InEvent
[3:27] - Growing up in Salvador, Brazil
[3:58] - Becoming an entrepreneur
[5:28] - Lessons learned from previous businesses
[7:11] - Why InEvent?
[8:32] - Reaction of friends & family
[9:26] - São Carlos’ ecosystem
[11:33] - InEvent’s inflection point
[13:50] - Setting up the business
[15:05] - Deciding to bootstrap
[16:46] - Fundraising in the US
[19:36] - Advice to other Latam SaaS companies
[22:17] - Pre and post-COVID-19
[24:12] - Managing a team remotely
[25:40] - Advice to younger self
[26:58] - Books, blogs, & podcast recommendations
[28:08] - What’s next for InEvent?
Resources mentioned:
- Pedro Góes
- InEvent
- Vinicius Neris
- Mauricio Giordano
- Books: Ozires Silva, Good to Great, Comcast History
Antonia Rojas, ALLVP: Investing in Latin America's Human Capital & Smart Cities, Ep 111
Antonia Rojas has been surrounded by machines and technology ever since she can remember. Her grandfather was one of the engineers that developed the first computer in Germany, while her mother was a digital photography pioneer in Chile.
Now, Antonia is carving her own path in the tech world with her passion for supporting startups that use technology to provide solutions to real-world problems. This year, she became the youngest female venture capital partner in Latin America when she joined ALLVP, a Mexico-based venture capital firm.
In this episode, I sit down with Antonia to talk about her journey as an entrepreneur-turned-investor and her views on the future of Latin America’s tech ecosystem. We also talk about her experience going through Start-Up Chile and her current work and investment process at ALLVP.
ALLVP’s four verticals Antonia explains that ALLVP targets tech startups in four different industries: fintech, human development, and the future of commerce and smart cities. She primarily focuses on edtech and the future of cities, and strongly believes that in Latin America there is a huge opportunity for the SaaS market.
Listen to this episode of Crossing Borders to learn more about ALLVP’s investment process and Antonia’s insights on the SaaS industry in Latin America.
Technology as a tool Antonia followed a traditional career path after studying business and economics in Chile. She worked for a real estate bank in Germany and then went back home to Chile. It wasn’t until she lived through a couple of earthquakes and saw the devastation in her country from the aftermath that she discovered how technology has the potential to efficiently solve a variety of problems.
Find out in this episode of Crossing Borders how Antonia’s perspective on technology changed and made her pursue a different career path to the one she had envisioned.
Transforming tradition with technology When Antonia came back to Chile from completing a Master’s in entrepreneurship in San Francisco, she was eager to find ways to support the local tech ecosystem. She soon realized that the best way for her to do this was by investing in tech companies. However, she first started working for a firm that focused on very traditional investments. Antonia explains that it was a slow process but eventually they started investing as angel investors in startups.
Check out this episode of Crossing Borders to learn about how Antonia convinced a very traditional investment firm to take a chance on startups.
Antonia Rojas is breaking the glass ceiling with her passion for technology and Latin American startups. With ALLVP she is supporting tech startups that are moving the needle in their industries and are radically transforming the world around them.
Outline of the episode:
- [1:20] - About ALLVP
- [2:40] - Getting into tech
- [5:20] - From entrepreneur to investor
- [8:00] - Experience at Start-Up Chile
- [9:17] - Convincing others into tech
- [10:40] - Joining ALLVP
- [14:27] - Advice to angel investors
- [14:49] - ALLVP’s verticals & investment process
- [17:44] - The future of Latam’s tech ecosystem
- [21:05] - Books, blogs, & podcast recommendations
- [22:30] - Advice to Antonia’s younger self
Resources & people mentioned:
- Antonia Rojas
- ALLVP
- Fernando Lelo de Larrea
- Cornershop
- Start-Up Chile
- Manutara Ventures
- Podcasts: Snacks Daily, The Twenty Minute VC
- Books: Simplify
Albert Santalo, 8base: Building the Software of the Future, Ep 110
Albert Santalo launched two successful tech companies from South Florida during economic recessions. The first company was right after 9/11 and a year after the dotcom bubble had burst. He recalls that being an entrepreneur in those times was like being “the scourge of the economy.” The second company was in the midst of the 2008 global financial crisis. This company was Carecloud, a cloud-based health tech company that currently processes billions of dollars in annualized accounts receivable.
Now Albert is the founder and CEO of 8base, a low-code development platform that helps entrepreneurs bring their digital products to life. Founders, particularly, non-technical founders can use 8base to get their products up and running in a faster and more economical way. He states that by 2024, 65% of the software will be written using low-code platforms.
In this episode, I sat down with Albert to talk about why low-code platforms are the future of software development and how he got started on his entrepreneurial journey. He explains what it was like to start a business in times of economic uncertainty and how becoming an entrepreneur changed him as a person. We also discuss the impact of COVID-19 on the workplace and what he thinks the future of remote work will be.
Learning how to execute Albert became fascinated with computers from a young age. He took his first computing class when he was in high school in the early days of microcomputing. Even though he always envisioned starting his own business, he didn’t exactly know what that would be back then. Before taking the big leap into entrepreneurship, Albert learned how to successfully execute a business while working at Answerthink Consulting Group, where he saw a company go from zero to IPO in 11 months.
Find out more about Albert’s lessons learned from his early days in this episode of Crossing Borders.
A student of the game Albert explains that he had a very deliberate approach to entrepreneurship. He did everything he could to prepare for the journey he would eventually take on. He would study and observe other companies, leaving very little to chance. Eventually, he experienced an internal shift and realized that there was only so much he could control as an entrepreneur. He had to dive in headfirst and let opportunities come naturally.
Listen to this episode of Crossing Borders to find out how Albert transformed from a creature of logic to one of faith.
Untapping the potential of low-code After working in a variety of industries developing different types of software, Albert started noticing a pattern in software developers. He realized that there was a tremendous opportunity to build a platform that would make programming easier for them and for people with fewer tech competencies. That’s when 8base was born.
In this episode of Crossing Borders, learn more about low-code development and the potential it holds for the future of software.
Since taking the leap into entrepreneurship, Albert Santalo has founded three successful tech companies. His ability to execute is further demonstrated with his most recent venture. The low-code development market is expected to grow by the billions in the next few years, placing 8base at the forefront of software development.
Outline of this episode:
- [1:25] - About 8base
- [2:50] - Albert’s background
- [4:30] - Finding his calling
- [5:48] - Taking the leap
- [7:38] - Transforming a creature of logic
- [11:12] - 9/11, the dotcom bubble, & 2008 financial crisis
- [13:44] - CareCloud
- [15:10] - Lessons learned from first two companies
- [16:10] - Why 8base?
- [18:20] - A typical 8base client
- [20:20] - Building a startup in Florida
- [21:23] - Remote work post-COVID-19
- [23:26] - Books, blogs, & podcast recommendations
- [24:33] - Advice to Albert’s younger self
- [26:35] - What’s next for 8base?
Resources & people mentioned:
- Albert Santalo
- 8base
- CareCloud
- Answerthink Consulting Group
- Books: Blitzscaling, Exponential Organization, Zero to One
Ángel Sahagún, Albo: Bringing Financial Inclusion to Mexico’s Underbanked , Ep 109
Originally from Campeche, Yucatan, Ángel Sahagún has been obsessed with fintech for the past ten years. From an early age, he realized that there was limited access to financial products for a large portion of the Mexican population. Since then, he has made it his mission to improve the country’s financial system.
Ángel founded Albo in 2016 to help Mexicans optimize the way they manage their money. Today, Albo is Mexico’s leading neobank and allows users to get a full-fledged bank account in just 5 minutes.
I sat down with Ángel to talk about why Albo is a game-changer in Mexico’s banking industry, how he became obsessed with fintech from a young age, and what his first steps in finance looked like. Ángel also explains how he approaches fundraising and gives advice to other entrepreneurs looking to raise money locally and globally as he did with Albo. It’s been a pleasure to get to know Angel while supporting him via Magma’s investment in 2018.
A tech-savvy population lacking the right tools Ángel explains that less than 50% of the Mexican population has a bank account, yet 90% own a smartphone. Two of the mains drivers of this disparity are a lack of trust in the traditional banking system and expensive maintenance fees. This gap creates a huge opportunity for fintech solutions to help promote financial inclusion in Mexico.
Find out how Albo is helping the underserved segments of Mexico’s population have access to a better financial life.
“Don’t you want to become a professional soccer player?” Ever since he was a kid, Ángel was clear on his personal mantra: to create value. While most of his peers aspired to become professional soccer players, Ángel chose to go off the beaten path. As a self-proclaimed doer, he realized that the best way to create and share value was by starting a company. His first entrepreneurial endeavor was at the early age of 19 when he founded MoneyMentor, a personal finance management app.
Listen to this episode of Crossing Borders to find out Ángel’s lessons learned from his first experience with fintech.
Fintech obsessed After Ángel’s family had money issues, he experienced the challenges within Mexico’s financial industry first hand. He was paying his own school tuition and needed to learn about how to manage his personal finances. However, at the time he could not find the right products that would help him achieve his financial goals. That’s when he became obsessed with fintech as a way to solve his own and other people’s problems.
Learn more about Ángel’s journey in Mexico’s fintech world in this Crossing Borders episode.
Ángel Sahagún is staying true to his mantra by creating and sharing value with Mexico’s underbanked population through Albo. He is transforming the banking experience for underserved segments and clearing some of the country’s biggest obstacles to financial inclusion.
Outline of this episode:
- [1:20] - About Albo
- [4:20] - Yucatan ecosystem
- [5:50] - Ángel’s first fintech startup
- [7:58] - Investing in Mis Rentas
- [8:56] - Why fintech?
- [10:40] - Albo’s clients
- [13:04] - Market overview in Mexico
- [14:51] - Daily challenges of Albo clients
- [16:30] - Closing an investment round
- [18:46] - Raising globally and investing locally
- [20:58] - Books, blogs, & podcast recommendations
- [22:26] - Advice to Ángel’s younger self
- [22:50] - What’s next for Albo?
Resources & people mentioned:
- Ángel Sahagún
- Albo
- Magma Partners
- Mis Rentas
- Blog: Wait but why?
Books: The Selfish Gene, High Output Management
Laura Mendoza, Unima: Developing Low-Cost Diagnostics for 3 Billion People, Ep 108
Laura Mendoza was already working on solutions for tuberculosis, the leading infectious killer worldwide, before COVID-19 came along. As founder and CPO of biotech Unima, Laura develops fast and low-cost diagnostics for infectious diseases. Her solutions help decision-makers create better programs for the treatment and control of these diseases.
From the first mentions of coronavirus early in 2020, Laura and her team immediately understood the magnitude of the problem. Quickly shifting gears, Unima started to focus on solutions for COVID-19, such as molecular tests for antibody detection.
I sit down with Laura to talk about why she decided to tackle human health and how she became an entrepreneur while completing several Masters along the way. We also discuss the work Unima was doing before COVID-19 and what it’s like to raise money as a biotech company in Latin America.
Tackling global health It had never crossed Laura’s mind to become an entrepreneur until she entered the workforce. After a couple of years, she realized that there were so many unaddressed problems in the world that needed to be addressed. It was while working for Boehringer Ingelheim, one of the biggest pharmaceutical companies in the world, that Laura saw an opportunity in biotech, specifically in animal health.
Listen to this episode of Crossing Borders to learn more about how Laura pivoted her company from animal health and focused on human health.
From TB to COVID-19 Although the current focus is on solutions for COVID-19 due to the global context, Laura explains that Unima was developing solutions for one of the world’s biggest killers: tuberculosis. She states that if the world population were to be mixed together, 1 in 3 people would have latent TB. And 1 in 10 people with latent TB, would later develop TB itself. Therefore, TB incidence in the world is very high and has major consequences in people’s lives including loss of jobs, discrimination, and, of course, death.
Find out how Laura developed a solution for TB diagnostics through her research on bovines in this episode of Crossing Borders.
Raising capital as a biotech in Latin America Laura explains that most Latin American investors and mentors treated Unima as they would any other traditional tech company. However, while software can be tested in real-time, biotech products are more time-intensive. Not to mention, it’s a heavily regulated industry, and the way in which traction is demonstrated can vary greatly from the standard tech company. Finding an investor that understood how the biotech industry worked was crucial for Unima’s development.
In this episode of Crossing Borders Laura explains how Unima found the right investors in Latin America for its specific industry.
Laura Mendoza is tackling some of the world’s most urgent problems with Unima’s solutions. Unima has the potential to help over 3 billion people gain access to timely diagnostics, and provide governments with the right information for better policies.
Outline of this episode:
- [1:21] - About Laura and Unima
- [3:03] - Benefits of diagnostics
- [5:30] - Becoming an entrepreneur
- [8:30] - Founding her first company
- [11:44] - On tech transfers
- [14:36] - Reaction of family and friends
- [16:26] - Pivoting at Mass Challenge
- [20:10] - Human health as a business
- [22:48] - Raising money in LatAm
- [25:31] - Building a COVID-19 test
- [29:11] - Recommended books, blogs, & podcasts
- [31:44] - Advice to Laura’s younger self
- [33:18] - What’s next for Unima?
Resources & people mentioned:
- Laura Mendoza
- Unima
- Boehringer Ingelheim
- Books: Poor Charlie's Almanack, Factfulness Illustrated
Maya Dadoo, Worky: Revolutionizing the HR Industry for Mexican SMEs, Ep 107
In Mexico, SME employees rotate at a rate of ~60% per year! With about 20M Mexicans working in this sector, this means 12M are switching jobs on a yearly basis. It’s amazing companies can get anything done! Coming from a background in chemical engineering, Maya Dadoo has always had a passion for making processes more efficient. When she noticed a problem in Mexico’s HR industry that was hindering talent growth in SMEs, Maya decided to look for an innovative solution.
In 2018, Maya founded Worky, an all-in-one HR software built for Mexican SMEs. Maya and her partner discovered that one of the main reasons employee retention is so problematic in Mexico is the lack of employee benefits in SMEs. Today, Worky closed a $3M round led by QED Investors and LEAP Global Partners, and is helping over 170 companies encourage financial health in employees and streamline their HR operations.
In this episode, I sit down with Maya to talk about why HR is a huge opportunity in Latin America, and how employee benefits in Mexico differ from the US. We also discuss her decision to focus on HR and how she transitioned from the corporate world into entrepreneurship.
Replacing Excel in Mexico According to Maya, traditional SMEs in Mexico won’t hire an HR manager until they hit the 30-employee mark. Until then, HR processes such as hiring and firing staff are usually the task of a CEO or an assistant. On top of that, they are working with about 12 Excel spreadsheets on average, resulting in a highly inefficient process. Through its innovative software, Worky aims to help companies be more strategic in their operations.
Learn more about the problems Worky is trying to solve in Mexico’s HR industry in this episode of Crossing Borders.
Working at eBay After becoming a chemical engineer, Maya worked in consulting for a few years and then chose to go to business school at Stanford. She soon realized that she needed to gain work experience in tech in order to keep up with the industry’s changing environment. Then, Maya landed a job at eBay that introduced her to the tech industry and hit the ground running.
Listen to this episode of Crossing Borders to learn more about how Maya’s experience working at eBay inspired her to get into tech.
The perks of being a CEO During her years working in the corporate world, Maya operated with a lot of independence but felt distant from where the decisions were being made. She explains that consultants don’t usually execute strategies, and therefore miss out on the feedback and the iterative processes that follow. Becoming a CEO was an attractive option for Maya for that reason. As CEO of Worky, she gets to tap into different parts of an organization and actively take part in optimizing solutions.
Check out this episode of Crossing Borders to find out why Maya chose to become CEO for a startup in the HR sector.
Maya Dadoo brings her knack for problem-solving to the HR sector in Mexico. She is helping SMEs reduce employee rotation and encourage the development of talent in Mexico with Worky’s solution.
Outline of this episode:
- [1:12] - About Worky
- [2:23] - Reality of SMEs in Latam
- [5:52] - First experience in tech
- [8:58] - From corporate to CEO
- [10:30] - Choosing HR tech
- [13:05] - insights on the Mexican HR market
- [15:24] - Payroll loans market
- [20:30] - Reacting to COVID-19
- [23:04] - Worky’s fundraising journey
- [25:30] - Recommendations on books, blogs, or podcasts
- [25:57] - What’s next for Worky?
Resources & people mentioned:
- Maya Dadoo
- Worky
- Books: Shoe Dog
- Ep 78 Mike Packer, QED Investors: The Trailblazing US VC Investing in Latin American Fintech
Vitor Torres, Contabilizei: Helping Brazilian SMEs with Tax Compliance, Ep 106
According to The World Bank, Brazil ranks as one of the top 10 hardest countries in the world to pay taxes, which can be concerning considering that Brazilians have to file their taxes on a monthly basis. Vitor Torres experienced the painful process of finding an accountant in Brazil, which is why he founded Contabilizei.
Contabilizei is an online tax filing and accounting service for SMEs in Brazil, where having an accountant as a business owner is not optional, it’s mandated by law. By using technology to scale their services, Contabilizei is disrupting the traditional accounting industry and helping customers save up to 80% on accounting fees a month.
I sat down with Vitor to talk about how he became a lieutenant in the Brazilian army and then started working as a business analyst for Nick Faldo’s Golf & Resort Management company. We also discuss how Curitiba’s ecosystem has evolved over the years and how he started Contabilizei –now the largest SME accounting firm in Brazil– when no one believed in his product.
From Porto Alegre to London Originally from Porto Alegre, Vitor moved to Curitiba at 18 years old to join the Brazilian army. Over the years, he scaled the ranks and became lieutenant, got married, and became a father at a young age. In the true entrepreneurial spirit, Vitor decided to take on a different adventure after his experience in the army and moved to London with his family to start his life over from scratch.
Listen to this episode of Crossing Borders to find out how Vitor built a career in the UK and ended up working for a renowned golf player.
Parallels between a lieutenant and a CEO Vitor learned some of his most valuable entrepreneurial lessons when he served in the Brazilian army. Facing tough situations and working as a team in the army prepared him for life as a founder and a CEO. He explains that it taught him how to be disciplined as well as to know when to ask for help.
Learn more about how Vitor’s experience in the army shaped him as an entrepreneur in this episode of Crossing Borders.
Contabilizei’s inflection point Vitor spent three months at his friend’s accounting firm mapping all the processes of his employees. Based on his research, he developed a product with his CTO, and a few months later launched Contabilizei. Traditional accounting firms take several years to build a portfolio of 100 customers. Contabilizei was able to acquire 70 in three months. That’s when Vitor knew he had a scalable business.
Check out this episode of Crossing Borders to hear more of Vitor’s fascinating bootstrapping story that eventually attracted key investors in Latin America.
Vitor Torres is using technology to bring a cost-effective solution to Brazil’s traditional accounting industry. With Contabilizei, SMEs can pay their taxes at an affordable rate and trust that their accountants are complying with the latest tax laws.
Outline of this Episode:
- [1:19] - Tech ecosystem in Curitiba
- [3:12] - About Contabilizei
- [5:24] - Benefits of tech-enabled accountants
- [8:15] - From Porto Alegre to London
- [14:56] - Lessons learned from the military
- [16:13] - Starting from scratch in the UK
- [17:24] - Reaction of friends and family
- [19:37] - Finding the product-market fit
- [22:01] - Inflection point for Contabilizei
- [24:24] - Evolution of Brazil’s tech ecosystem
- [25:24] - Advice to Vitor’s younger self
- [26:43] - Doing business in Brazil
- [27:57] - Recommendations on books, blogs, or podcasts
- [29:19] - What’s next for Contabilizei?
Resources & People Mentioned:
- Vitor Torres
- Contabilizei
- DoingBusiness.org
- Nick Faldo
- International Golf & Resort Management Ltd.
- Kaszek Ventures
- Books: Good to Great, What You Do Is Who You Are, The Power of Now, The Hard Thing About Hard Things
Geoff Michener, dataPlor: Closing the Latin American Data Gap with Human Verified SME Data, Ep 105
Growing up in Denver, Colorado, Geoff Michener was interested in international trade and economics. During his undergrad, he got the opportunity to study abroad in Nicaragua and learn about foreign investment. There, he quickly fell in love with Latin America and promised himself that he would come back and do business in the future.
Geoff kept his promise and is now CEO and founder of dataPlor, a Magma portfolio company that provides quality data on small businesses in Latin America. He noticed that there was a huge information gap in the region where up to 75% of SMEs have no online presence. DataPlor’s team of “explorers’ capture and validate data to build a database which provides enterprises with accurate information on small businesses.
In this episode, I sit down with Geoff to talk about the value dataPlor brings to large enterprises as well as the challenges of collecting data in Latin America compared to the US. We also discuss some of the lessons he’s learned from shutting down his first startup, and also some of his reflections on the future of data.
Escaping academia and becoming an entrepreneur Following his passion, Geoff studied international trade and economics. During his years at university, he landed top-notch internships at the White House, the Pentagon, and a think tank. However, he eventually became frustrated with the sea of red tape he experienced in the field and questioned whether it was the right path for him. At that moment, a friend offered him the chance to work at a startup, and his curiosity got the better of him.
Listen to this episode of Crossing Borders, to hear about Geoff’s experience working at what is today known as Living Social.
Shutting down a startup Geoff’s first startup went through what many business owners have unfortunately had to do: dissolve a company. However, he looks back on this moment as a huge learning opportunity. The relationships he built throughout the startup’s lifecycle ended up giving him the direction he needed. When a previous customer suggested he look into Latin America’s data for small businesses, he jumped at the opportunity and began investigating Mexico.
Learn more about the lessons Geoff learned from shutting down his company on this episode of Crossing Borders.
“In Mexico, less than 5% of small businesses have a website” Access to online data is a lot more widespread in the US, where about 90% of businesses have some digital footprint. However, in Latin America, a lot of small businesses are offline and therefore have no digital footprint. That can be a problem and a deterrent for big enterprises in the US looking to study the Latin American market for growth opportunities.
Check out this episode of Crossing Borders to find out how dataPlor is solving Latin America’s data problem.
Geoff Michener is helping reduce misinformation on SMEs in Latin America by capturing highly accurate data that will help bring new opportunities to the region.
Outline of this episode:
- [1:09] - About dataPlor
- [3:17] - A typical dataPlor client
- [4:30] - About Geoff
- [5:41] - Becoming an entrepreneur
- [7:23] - Deciding on dataPlor
- [11:53] - On winding up a company
- [15:22] - Lessons from the old business model
- [17:34] - Challenges of gathering data in Latam
- [21:24] - The future of data
- [24:17] - Books blogs podcast
- [26:39] - On dataPlor’s newsletter
- [28:47] - Advice to Geoff’s younger self
Resources & people mentioned:
- Geoff Michener
- dataPlor
- dataPlor newsletter
- Magma Partners
- Cato Institute
- Living Social
- INEGI
- Data companies: LiveRamp, Factual, Foursquare, Infogroup, Dun & Bradstreet
- Blog: Andreessen Horowitz
- Books: The Hard Things About Hard Things, Never Split the Difference
Podcasts: This Week in Startups, a16z
Gabriela Estrada, Vexi: Bringing Credit to the Underbanked in Mexico, Ep 104
Only one in ten adults in Mexico have access to a formal credit card, according to Gabriela Estrada. That’s more than 70 million people that are not able to build a credit history. As cofounder and CFO of Vexi, Gabriela is on a mission to make credit accessible to Mexico’s underbanked population.
Originally from Chihuahua, Mexico, Gabriela was at the peak of her career at Citibanamex in Mexico City when she decided the corporate world wasn’t for her. She was the only female director as well as the youngest among her peers by 10 to 15 years. After leaving the bank, her friend convinced her to cofound Vexi with him, where she quickly fell in love with the power of impacting her community through fintech.
I sit down with Gabriela to talk about her experience as a woman in finance in Mexico and some of the challenges she now faces as a female founder when seeking investment. We also discuss why she decided to tackle financial inclusion and how Vexi is helping increase financial literacy in Mexico.
Vexi’s clientbase Gabriela discovered that Vexi was a way of helping the local community by leveraging her extensive experience in finance. She explains that, although Vexi’s clients come from diverse backgrounds, they have two common denominators: resilience and loyalty. These individuals are used to rejection from traditional financial institutions. When they find a bank that believes in them, they want to repay that trust.
Check out this episode of Crossing Borders to learn more about how Vexi is helping make credit accessible to underserved Mexicans.
Credit vs. debit Debit cards are a huge success in regions like Europe. However, Gabriela explains that in Latin America the financial needs are different and the real game-changers are credit cards. However, finding a way to underwrite people that have never been underwritten before can be a daunting task. Gabriela explains that it requires a lot of creativity to be able to change the lives of the underbanked.
Learn more about how gaining access to credit can change the lives of Latin Americans on this episode of Crossing Borders.
The risk bias in venture capital As a female founder, Gabriela explains that she gets asked weird questions when raising money, making it difficult to build relationships with male venture capitalists. It took her some time to realize that investors weren’t asking her about the risks of the business because she was CFO of the company. It was because of her gender.
Listen to this episode of Crossing Borders to learn about how Gabriela learned to turn those questions into opportunities
Gabriela Estrada took a leap of faith when she left her job at one of the largest banks in Mexico. Since then, she has been using her knowledge to help thousands of people gain access to credit with Vexi. Her story is an example for women to continue to break the glass ceiling.
Episode outline:
- [1:17] - About Vexi and Gabriela
- [3:25] - On Vexi’s client base
- [7:54] - From Chihuahua to chilanga
- [9:32] - Falling in love with entrepreneurship
- [12:11] - Being a woman in finance in Mexico
- [13:50] - Lessons learned from working in banks
- [15:56] - Reaction from friends and family
- [17:39] - Choosing Vexi and financial inclusion
- [19:34] - Credit vs. debit
- [22:24] - Avoiding loan sharks
- [24:01] - Tackling financial illiteracy
- [25:50] - Raising money as a female founder
- [29:45] - Recommendations on books, blogs, or podcasts
- [30:56] - Advice on taking the leap
- [32:02] - What’s next for Vexi?
Resources & people mentioned
- Gabriela Estrada
- Vexi
- Book: Delivering Happiness
Gonzalo Ucar, Hogaru: Empowering Colombia’s Cleaners to Earn Stable Wages, Ep 103
As an engineer, Gonzalo Ucar wanted to solve real world problems. Originally from Spain, he decided to move to Latin America to become an entrepreneur and tap into the region’s opportunities. Today, he lives in Bogota and is co-founder of Hogaru, an on-demand cleaning company in Colombia.
Gonzalo and his partner recognized a huge pain point in Colombia’s cleaning industry: a deeply-rooted informal economy. Most cleaners in Colombia do not have a steady income or a social security number, which restricts their ability to realize their full economic potential. That’s why Hogaru’s cleaning service functions on a direct employment basis and avoids encouraging a gig economy.
In this episode, I sit down with Gonzalo to talk about how a Spaniard ended up in Colombia, Hogaru’s unique business model, and the lessons he’s learned as an engineer that he applies as an entrepreneur. We also discuss his major takeaways from participating in Y Combinator and working with Endeavor.
The YCombinator experience For the first couple of years, Gonzalo bootstrapped Hogaru. After receiving funds from the accelerator Wayra, he applied to YCombinator, and, after a few tries, Gonzalo and his partner finally made it through. At YC, Gonzalo received advice from some of the best entrepreneurs and advisors in the US. Although the experience opened up a lot of doors for them, fundraising for Hogaru was tough. Gonzalo explains that running a business on limited funds taught him and his team great lessons.
Learn more about Hogaru’s YCombinator journey on this episode of Crossing Borders.
“The business was at risk of disappearing” Hogaru’s business model seeks to transform the foundation of an entire industry. By choosing to employ its workers, if the company fails almost 1000 people will lose their jobs. Therefore, there was an urgent need for funds to be able to guarantee job security to their staff and cleaners. Faced with the risk of disappearing as a company, Gonzalo and his partner decided to focus on creating a profitable business.
Listen to this episode of Crossing Borders to learn more about why Hogaru chose to prioritize profitability.
Path to profitability Profitability and growth are both important for a company’s existence. However, sometimes one weighs heavier than the other, depending on the business model and stage of a company. Gonzalo explains that it is important to study both strategies to see which makes sense for your startup.
In this episode of Crossing Borders, Gonzalo gives advice to entrepreneurs who are looking to build a profitable business in Latin America.
Gonzalo Ucar moved to Latin America to create an impact and solve real world problems. Through Hogaru, he is helping formalize the cleaning industry in Colombia to produce high-quality professionals.
Outline of this episode:
- [1:20] - About Hogaru and Gonzalo
- [4:10] - A Spaniard in Colombia
- [4:50] - Becoming an entrepreneur
- [5:30] - Latin America’s informal economy
- [6:40] - Lessons learned as an engineer and consultant
- [7:46] - Bootstrapping the first few years
- [8:40] - On fundraising for the cleaning sector
- [9:57] - Applying for YCombinator
- [10:58] - Advice on applying to YC
- [13:15] - Current status of Hogaru
- [13:55] - Choosing profitability
- [15:13] - What is Endeavor?
- [16:43] - Biggest issues Hogaru has solved
- [18:22] - Advice to entrepreneurs on building a profitable business
- [19:42] - Advice to Gonzalo’s younger self
- [20:41] - Gonzalo’s recommendations for books, blogs, & podcasts
- [21:54] - What’s next for Gonzalo and Hogaru?
Resources & People Mentioned:
- Gonzalo Ucar
- Hogaru
- Endeavor
- Accelerators: Wayra, YCombinator
- Startups: Rappi, Platzi
- Blogs: Paul Graham, Andreesen Horowitz
- Books: Thinking Fast and Slow, Predictability Rational, Daring Greatly, Lessons of History, The Hard Thing About Hard Things
Daniel Cossío, Village Capital: Transforming Big Ideas from Vision to Scale, Ep 102
Daniel Cossío decided he wanted to be involved in technology when he realized that businesses could produce a greater social impact than just an economic return. Today, he is Regional Manager for Latin America at Village Capital, a venture capital firm that supports impact-driven, seed-stage startups that focus on financial services, sustainability, and the future of work and education.
For ten years, Village Capital has supported over 1100 entrepreneurs from around the world, investing in more than 110 startups including Fintual, Vexi, and Siembro in Latin America. Daniel explains that Village Capital believes in supporting entrepreneurs that are often overlooked, helping them bring their big ideas from vision to scale.
In this episode, I sit down with Daniel to discuss how he got on the investor side of the table and became the lead in LatAm and how entrepreneurs can get involved with Village Capital. We also talk about a recent report released by Village Capital called Beyond Borders on how to successfully scale a startup in Latin America, among other industry trends in the region.
Building relationships beyond networking events Daniel explains that one of the main lessons he’s learned from working at Village Capital is how to become an active listener. In venture capital, it’s not enough to hand out business cards at networking events. To build a strong relationship, it’s important to understand the personal story behind the decisions and motivations of an entrepreneur or investor.
Listen to this episode of Crossing Borders to hear more of Daniel’s lessons learned from working at Village Capital.
Scaling a fintech in Latin America After observing that founders often struggle with finding the right moment to scale their startup in another country, Village Capital developed a playbook entitled Beyond Borders. According to Daniel, entrepreneurs face a lot of pressure to expand and often fail in the process because they make the decision for the wrong reasons. This report is meant to share insights on how to successfully scale a fintech startup in Latin America.
Check out this episode of Crossing Borders to learn about some of the reasons startups fail when they expand into other markets.
Village Capital and COVID-19 Daniel delves into some of the verticals Village Capital is tackling amid the global pandemic. He explains that the fund is particularly interested in startups that are creating solutions that will help heal the economy post-COVID-19 and those that are most vulnerable to the crisis’ financial repercussions.
In this episode of Crossing Borders, Daniel explains how the global health and economic crisis has affected Village Capital’s investment thesis.
Daniel Cossío’s passion for creating social impact through entrepreneurship is vital to Village Capital’s vision of a future where business can create equity and long term prosperity in Latin America.
Outline of this Episode:
- [1:32] - About Daniel and Village Capital
- [3:27] - Starting his entrepreneurial journey
- [5:54] - Getting on the investor side of the table
- [8:56] - Becoming the lead in LatAm
- [11:01] - Beyond Borders report
- [14:31] - Advice for startups thinking of expanding
- [15:53] - Getting involved with Village Capital
- [17:40] - Daniel’s recommendation for books, blogs, documentaries, and podcasts
- [18:52] - Advice to Daniel’s younger self
Resources & People Mentioned:
- Daniel Cossío
- Village Capital
- Beyond Borders
- Amanda Jacobson
- Fintual
- Vexi
- Siembro
- OneWay
- Afluenta
- Alejandro Cosentino
- Cornershop
- High Growth Handbook
- Principles
Ishan Sinha, Point72 Ventures: Investing in Global Fintech Startups, Ep 101
Originally from New Delhi and Kathmandu, Ishan Sinha grew up on the move. Due to his Dad’s job, he lived in six countries in three different continents until finally settling down in Connecticut. Today, as Vice President of Point72 Ventures, he still spends a lot of time on planes, however his usual travel plans are currently on hold in light of COVID-19. In normal circumstances, he travels several times throughout the year to explore markets in the Middle East, Northern Africa, South East Asia, and Latin America.
Point72 Ventures is the independent, early-stage investment arm of Steve Cohen’s $16B hedge fund Point72 Asset Management. The fund –always seeking to be at the forefront of new technology– naturally contacted a lot of startups, which eventually turned into investable businesses. Their first investment in Latin America was in Pierpaolo Barbieri’s fintech Ualá. Ishan, with his international background, immediately jumped at the opportunity to lead the fund’s new global endeavors.
In this episode, I sit down with Ishan to talk about his nomadic upbringing, Point72’s core thesis and decision to explore outside of the US, and his insights on the differences between traditional investing and venture capital. We also discuss how Latin America compares to South East Asia, and Ishan gives advice on how to approach the Latin American market.
A cultural education at a young age Ishan reflects on the valuable lessons he learned from growing up all over. He explains that being a foreigner in a lot of places taught him how to quickly connect with people, a skill that comes in handy at Point72 when he travels abroad to meet entrepreneurs from different countries.
Learn more about how the nomadic lifestyle helps Ishan dive into different markets in this episode of Crossing Borders.
Traditional investing versus venture capital Accustomed to a more quantitative approach to analysing businesses in public markets, the qualitative side of venture capital presented Ishan with a new and unexpected challenge. Making a decision based on abstract concepts or products and markets that do not exist yet contrasted with the heavy reliance on data that Ishan was used to.
Listen to this episode of Crossing Borders to find out how Ishan uses his past experience in public markets to complement his work in venture capital.
Drawing parallels between Latin America and South East Asia Ishan discusses the similarities he’s seen in markets across the world, particularly between Latin America and South East Asia. In 2019, he started spending more time in the Philippines as he closed his first investment in the country and noticed that the businesses in the region were not that different to Latin America’s. Both regions seem to be using technology as a leapfrog to solve similar pain points.
Learn more about the parallel markets popping up all over the world in this episode of Crossing Borders.
Ishan Sinha is following his mandate to invest globally. As Point72 expands throughout the region, Ishan’s experience in public and private markets as well as his unique upbringing will be key to tackling Latin America’s diversity.
Show Notes
- [1:21] - On staying home
- [2:44] - About Point72 Ventures
- [6:12] - Expanding outside of the US
- [8:10] - Lessons learned from a nomadic upbringing
- [11:19] - Becoming an investor in tech
- [14:14] - Traditional investing versus venture capital
- [18:40] - Point72’s core thesis in LatAm
- [21:55] - Starting the conversation with Point72
- [23:07] - South East Asia versus Latin America
- [29:27] - What’s next for Point72 in LatAm?
Resources Mentioned:
- Point72 Ventures
- Ishan Sinha
- Domino Data Lab
- Sequioa Capital
- Pete Casella
- Tripp Schriner
- Ualá
- Ep 42 Pierpaolo Barbieri: How Ualá is Increasing Financial Inclusion in Argentina
- Mike Packer, QED Investors: The Trailblazing US VC Investing in Latin American Fintech, Ep 78
- Belvo
- Credijusto
- Contabilizei
- Sprout
Advice from Venture Capitalists to Latin American Founders, Ep 100
Over the years, we’ve had the chance to interview some of the best venture capital investors in Latin America on the Crossing Borders podcast. With that in mind, we decided to launch an Investor Remix Series, where we go back to previous episodes to highlight the stories of some of the region’s most interesting and successful investors. For the first episode in the series, we feature six investors giving advice to founders from Latin America.
The episode kicks off with Michael Sidgmore, Partner at Broadhaven Ventures, who provides tips to founders on how they should be approaching their investment pitch. Next, Andrés Barreto, Founder of Firstock Capital, talks about some of the most common mistakes founders make when seeking investment. Then, Amanda Jacobson, a venture capitalist currently working at fintech startup Oyster Financial, talks about the lessons she’s learned from when she first started out as an entrepreneur.
Next, Johanna Posada from Elevar Equity shares advice she would have given her younger self as an investor and an entrepreneur. Then, QED Investors’ Mike Packer, talks about key questions to be sure to ask VCs when raising money. Lastly, we have Güimar Vaca Sittic, Venture Partner at FJ Labs who provides insights to founders on determining the size of their company.
Investors’ full-length episodes:
- Michael Sidgmore, Broadhaven Ventures: Investing in LatAm’s Fintech Ecosystem, Ep 97
- Andrés Barreto, Firstock Capital: International Business Strategy That Cuts Cost and Increases Profit, Ep 19
- Amanda Jacobson: Solving Problems in Education, Agriculture, and Fintech in Latin America, Ep 30
- Güimar Vaca Sittic: Building and Investing in International Online Marketplaces, Ep 18
- Mike Packer, QED Investors: The Trailblazing US VC Investing in Latin American Fintech, Ep 78
- Johanna Posada, Elevar Equity: Driving Impact in Latin America via Venture Capital, Ep 79
Show Notes:
- [0:56] Michael Sidgmore - Advice for founders in LatAm pitching to a VC
- [4:44] Andrés Barreto - Top mistakes founders make when pitching to a VC
- [9:48] Amanda Jacobson - Advice to those starting out: listen and observe
- [11:07] Johanna Posada - Advice to her younger self
- [12:13] Mike Packer - Questions to ask a VC
At Magma Partners, we work with people who share our values, whether they’re the founders we invest in or the mentors and investors we bring on to our team. We hope to create lifelong relationships with the people we support.
For this episode, we’re featuring eleven Magma entrepreneurs –some are members of our portfolio, and others are from our team– who have appeared on previous episodes of the Crossing Borders podcast to share their advice to founders from Latin America on how to get started.
This episode starts off with GroupRaise’s Sean Park who reflects on what he has learned since starting his online restaurant reservation platform. Next, is Matías Rivera, founder of Fanatiz, who talks about his perspective on resistance to change. Kevin Valdez, also co-founder of GroupRaise, explains how advice from his father has shaped his outlook on life. Keteka’s Jack Fischl, talks about what he would have told 2014-Jack on managing a company. Emmanuel Oquendo from BrainHi then explains what it means to be a CEO and how he applies that to his everyday life.
Next, Base Operations’ Cory Siskind shares her insights on the importance of building the right team from the get-go. Daniel Bilbao from Truora reflects on his entrepreneurial timeline and how he would have done things differently. Our partner, Pedro Pablo del Campo, shares some humbling words to keep in mind as an entrepreneur.
Marta Forero, founder of Ubits gives advice to women looking to expand their business and raise money in the US. Then Diego Caicedo from OmniBnk, shares lessons he´s learned about doing business over the years. Finally, our advisor, Neil Coleman provides advice on how to get through tough situations.
Magma Entrepreneurs’ full-length episodes:
- Sean Park, GroupRaise: How GroupRaise Became The Tastiest Way to Change the World, Ep 31
- Matías Rivera, Fanatiz: Building Businesses and Replanting Patagonian Trees, Ep 73
- Kevin Valdez, GroupRaise: From Guatemala to GroupRaise, Ep 39
- Jack Fischl, Keteka: Taking Tourists off the Beaten Path with Keteka, Ep 51
- Emmanuel Oquendo, BrainHi: How Brainhi Rebounded from Hurricane Maria to Become Puerto Rico’s First YCombinator Company, Ep 68
- Cory Siskind, Base Operations: Using Technology to Secure Global Workforces, Ep 81
- Daniel Bilbao, Truora: Fighting Fraud in Latin America, Ep 80
- Pedro Pablo del Campo: Building Bridges Between Latin America & the USA, Ep 55
- Marta Forero, Ubits: Driving Economic Growth in Latin America via Corporate Education, Ep 74
- Diego Caicedo, Portal Finance: Streamlining Small Business Finance in Latin America with Portal Finance, Ep 53
- Neil Coleman: Creating an International Market Expansion Strategy, Ep 28
Show Notes:
[0:57[ Sean Park - Lessons learned
[2:32] Matías Rivera - Advice to younger self
[3:26] Kevin Valdez - Advice from his father
[5:26] Jack Fischl - Advice to younger self
[7:02] Emmanuel Oquendo - Advice to younger self
[8:36] Cory Siskind - Advice to younger self
[9:36] Daniel Bilbao - Advice to younger self
[10:25] Pedro Pablo del Campo - Advice to younger self
[11:15] Marta Forero - Advice for women entrepreneurs
[12:45] Diego Caicedo - Advice to younger self
[14:50] Neil Coleman - Advice to younger self
Resources mentioned:
- GroupRaise
- Fanatiz
- Keteka
- BrainHi
- Base Operations
- Truora
- Ubits
- OminBnk
- Attune
- Magma Partners
80% of Venezuelans today depend on remittances to survive. Almost seven million people have left the country since the protests against the Maduro government started, creating a massive diaspora, almost all of whom send money home to family members trapped in the country.
Simon Chamorro was born and raised in Caracas, Venezuela, so he has seen this problem firsthand. He co-founded Valiu to make it easier to transfer money from Colombia to Venezuela by streamlining remittances using cryptocurrency.
In this episode of Crossing Borders, Simon explains how Valiu is using cryptocurrency to solve real-life problems, and how it has the potential to combat inflation in economies across Latin America. Now living in Colombia, Simon also discusses the important lessons he has learned working with four startups in the Colombian ecosystem, his own experience in starting a company, and where Valiu is headed next.
Check out this episode of Crossing Borders to learn more about the current situation in Venezuela and how Valiu is helping streamline the remittance economy from across the Colombian border.
Venezuela: the “biggest hyperinflation crisis in economic history” Simon Chamorro first encountered cryptocurrency when working at Rokk3r Labs, a crypto-security company in California, with co-founder David ?. While living in Colombia and sending money back home to his family in Venezuela, he recognized a real need for a safe platform for transferring money across borders.
Simon describes Valiu as being “the right company at the right time,” providing a solution to the issue of remittance cash flow in creating a closed economy through which to transfer money within Latin America, specifically from Colombia to Venezuela. The Valiu app manages these transactions to guarantee that payments arrive within an hour.
Listen to the full episode to find out more about how cryptocurrencies are helping to the current economic crisis in Venezuela.
How cryptocurrencies are helping create a safer Venezuelan economy Valiu is using cryptocurrency to solve the current crisis of the Venezuelan economy by allowing people to keep their savings on US dollars, the ultimate store of value in the global economy. Dollar accounts are the most stable option for Venezuelans in light of the country’s extortionate inflation rates.
Simon explains how Valiu’s technology has the potential to not only help stabilize Venezuela’s economy but also others to help Latin American economies that frequently deal with high inflation rates, like Argentina.
Check out the rest of the episode for how Valiu is using the Venezuelan diaspora to connect Latin America to international economies by securing money on the dollar.
Simon’s lessons learned from four Colombian startups I asked Simon what he considered the most important lessons he learned from working in four different startups and then building his own company in Colombia. He said that it was always to know the end goal; without a vision for the company, it is hard to find the path to success.
Simon also mentions that finding a good mentor helped him to navigate the startup network and find his footing in the industry. Through his mentor, he not only learned essential business skills that helped grow the company but also gained access to a wider market of investors in Colombia.
Check out the rest of the podcast for more lessons that Simon has learned from Colombia startups to running Valiu.
Today, Valiu is looking to expand beyond Venezuela and use cryptocurrency to change the face of Latin America’s economies, creating a more structured and stable financial system. The startup is providing economic security to families in an unstable country, creating a solution to a current and urgent problem. Check out the rest of the episode for how the full story on how Simon is building Valui into a company that is helping Venezuelans survive a crisis and could support Latin Americans in unstable economies across the region.
Outline of this Episode:
- 1:55 - Introducing Simon Chamorro and Valiu.
- 3:15 - Simon’s background, growing up in Venezuela and studying service design.
- 5:53 - The tech industry: Simon’s first experiences in the tech industry, working in the US and Colombia.
- 10:42 - How Simon came up with the idea of Valiu.
- 11:10 - Simon’s three recommendations for working in a startup.
- 13:41 - How Valiu has the potential to combat the Venezuelan economic crisis and build safer economies in Latin America.
- 17:33 - Valiu: a simple, user-friendly way to send money to Venezuela.
- 20:28 - Fighting inflation in Latin America.
- 23:16 - Key lessons Simon learned from going through YCombinator.
- 25:13 - Simon’s recommendation for books, blogs, documentaries, and podcasts.
- 26:20 - Growing Valiu’s market across Latin America.
Resources & People Mentioned
- Valiu
- Rockerlabs
- Admobilize
- Liftit
- Chiper
- Ycombinator
- Book recommendations: Predictable Revenue
- Brian York Podcast
- Simon on LinkedIn
- Simon on Twitter
- Simon on Facebook
When Michael Sidgmore thinks about investing, he thinks about making the biggest impact possible in people’s lives. His passion for economic development and financial inclusion has led him to build a career as a fintech investor and entrepreneur focused on financial infrastructure, wealth management, and financial inclusion. Today, he is a Partner and cofounder of Broadhaven Ventures, a Silicon Valley based fintech venture capital firm that has invested in 5 startups in Latin America.
Broadhaven Ventures invests globally in early-stage fintech startups but largely focuses on Latin America and the US. The fund was built out of a market leading fintech investment bank called Broadhaven Capital Partners to start to invest directly into some of the best companies they were seeing on the investment banking side of the business.
In this episode, I sit down with Michael in Mexico City to talk about his background in soccer, then in tech banking, and how an NGO inspired him to kickstart his investing career. We discuss what led him to do venture capital in Latin America, and also cover some of the biggest trends in Latin American fintechs and how these compare to Asia and the US.
“It was fascinating to see a non profit be run like a business” While Michael studied International Relations at the LSE, he worked at Room to Read, a non-profit that focuses on improving literacy and gender equality in education in the developing world. He was not only amazed at how they built economic development in different countries, but also by the business side of the organization.
Listen to this episode of Crossing Borders to learn more about how Michael realized he could build companies with positive financial return that could also create a huge social impact in people’s lives.
Thinking about Investing in a cash-based economy Michael stresses the importance of spending time in an ecosystem in order to fully understand it. When he started investing in Latin America, he would come down once a quarter for meetings and immerse himself in the environment. There are a number of cultural differences in the way that people think about their financial lives in Latin America that need to be understood before investing, such as the heavy dependance on cash or the lack of trust in banks.
Learn more about the different ways in which people think about money in LatAm in this episode of Crossing Borders.
The Rise of the Stealth Fintechs According to Michael, an interesting theme in LatAm and Asia is that non fintechs are becoming fintechs. Several high frequency usage models like Rappi, Grow, and Kovi are getting into financial services by releasing their own payments platforms like Rappipay or Grin wallet. Michael considers these new players will be a defining feature in LatAm’s future fintech ecosystem.
Listen to this episode to find out what are the current trends in LatAm’s fintech ecosystem.
Michael Sidgmore is passionate about combining business with social impact. Through his work at Broadhaven Ventures he is driving financial inclusion and economic development in Latin America and the US.
Show Notes:
- [1:04] - About Broadhaven Ventures
- [2:11] - From Middlebury to London
- [2:49] - Working on both sides of the table
- [4:25] - Lessons learned from the entrepreneur side
- [5:47] - Why is FinTech part of the investment thesis
- [7:30] - A subconscious interest in LatAm
- [10:08] - Biggest surprises that you ran into looking at the fintech ecosystem?
- [11:37] - Doing business in Brazil
- [14:16] - Comparing LatAm to Southeast Asia and the US
- [23:25] - What’s next for Michael and Broadhaven Ventures?
- [27:10] - Books, blogs, or podcasts Michael recommends
- [29:20] - Advice for founder’s in LatAm pitching a VC
- [34:20] - Advice for Michael’s younger self
Resources mentioned:
- Room to Read
- Mosaic
- iCapital
- Credijusto
- Kovi
- Grow
- Pipefy
- Psafe
- Gympass
- Nowports
- Hope in the Unseen - Ron Suskind
- Leaving Microsoft to Change the World - John Wood
- Betting it All - Michael S. Malone
- The Twenty Minute VC
- Y Combinator
YCombinator is one of the leading early-stage US investors in Latin America, and has served as a signal for other US investors to start making their first investments in the region. Since accepting its first Latin American founder in 2013, the region’s presence in the accelerator program has significantly increased. The most recent batch had over 15 companies from Latin America.
In this episode, we’ve gathered advice from 8 founders, some we’ve interviewed previously, and some new ones, that have participated in YCombinator. They talk about their experience going through the program and give tips to founders in the interview process, which can also be useful for other accelerators.
We start off with Christian Van der Henst from Platzi who describes YCombinator as the handbook of doing business in Silicon Valley, followed by Deepak Chhugani from Nuvocargo who explains how he thinks entrepreneurs can maximize resources and mentorship from the program.
Next is Emmanuel Oquendo from BrainHi who talks about being the first Puerto Rican startup to get into YCombinator and gives advice for the interview process. He’s followed by João de Paula from Glio who talks about the importance of finding a work-life balance in YCombinator’s fast-paced environment.
Truora’s David Bilbao then explains how Latin Americans should leave storytelling for last and be more concise in their responses during the interview process. Next is Freddy Vega from Platzi who talks about the importance of understanding your metrics, and Marta Forero from Ubits gives tips on how to prepare 15-second responses for the interview.
And finally, Pedro Goes from InEvent gives advice on how to think about what you want to share with the partners at YCombinator.
Show Notes:
- [0:00] - Introduction
- [1:45] Christian Van der Henst - Applying for YC
- [3:43] Christian Van der Henst - The value of being with other entrepreneurs
- [4:38] Deepak Chhugani - Explaining your business in one minute or less
- [6:30] Emmanuel Oquendo - First Puerto Rican startup to get into YC
- [7:46] Emmanuel Oquendo - Advice for the interview and the program
- [9:30] João de Paula - Knowing your competitors for the interview
- [12:33] João de Paula - How to position yourself once inside the program
- [14:32] Daniel Bilbao - No BS: answer directly, and then give your story
- [16:58] Freddy Vega - Understand your metrics
- [18:53] Marta Forero - Learning US terms
- [21:04] Marta Forero - Training for 15-second responses
- [23:59] Pedro Goes - Three key points of your company
Links to founders’ full-length episodes:
- Christian Van der Henst: Helping Latin America Learn with Platzi, Ep 52
- Emmanuel Oquendo: How Brainhi Rebounded from Hurricane Maria to Become Puerto Rico’s First YCombinator Company, Ep 68
- João de Paula, Glio: YCombinator’s First Latin American Startup, Ep 85
- Daniel Bilbao, Truora: Fighting Fraud in Latin America, Ep 80
- Marta Forero, UBits: Driving Economic Growth in Latin America via Corporate Education, Ep 74
Resources Mentioned:
- YCombinator
- Platzi - Christian Van der Henst & Freddy Vega
- Nuvocargo - Deepak Chhugani
- BrainHi - Emmanuel Oquendo
- Glio - João de Paula
- Truora - Daniel Bilbao
- Ubits - Marta Forero
- InEvent - Pedro Goes
In honor of the seventh edition of the IDB’s WeXchange annual event taking place in Asunción, Paraguay next week, this episode highlights the stories of seven women from both sides of the investment table featured in past Crossing Borders episodes. These high performers share their experiences of what it’s like being a woman in technology in Latin America.
This episode starts off with a55’s Jackie Hyland talking about how gender balanced teams improve the long-term health of a business, and Lab4U’s Komal Dadlani talking about her experience as a female founder in science.
Next is Alejandria Tenorio, cofounder of La Manicurista, who talks about her transition from the oil and gas industry into tech, and Cory Siskind, founder of Base Operations, talks about the institutionalized challenges women face in entrepreneurship.
Elevar Equity’s Managing Director Johanna Posada also shares her opinion on investing in Latin America and upping women representation, and Maricel Saenz from Nextbiotic shares her experience as a young female cofounder in biotech. Lastly, Marta Forero from Ubits explains what it was like to be the only Latin American woman in her YCombinator cohort and how the ecosystem can be more gender inclusive.
The WeXchange annual forum was founded in 2013 by the IDB Lab and Susana Garcia-Robles to support and connect women STEMpreneurs in Latin America and the Caribbean. If you want to learn more about WeXchange and its backstory, check out Susana Garcia Robles podcast with me Supporting Venture Capital and Women Entrepreneurs in Latin America, Ep 86, or the WeXchange podcast where Susana and her team interview top female founders and those that support them in Latin America and the Carribbean.
Female founders’ full-length episodes:
- Jackie Hyland: How Debt Tools Can Help Latin American Entrepreneurs, Ep 69
- Komal Dadlani, Lab4U: Turning Smartphones in Science Labs, Ep 63
- Alejandra Tenorio, La Manicurista: Using Tech to Improve Latin America’s Beauty Industry, Ep 72
- Cory Siskind, Base Operations: Using Technology to Secure Global Workforces, Ep 81
- Johanna Posada, Elevar Equity: Driving Impact in Latin America via Venture Capital, Ep 79
- Maricel Saenz, NextBiotics: Defeating the Next Superbug, Ep 76
- Marta Forero, UBits: Driving Economic Growth in Latin America via Corporate Education, Ep 74
Show Notes:
- [2:35] Jackie Hyland - The importance of including women in business and politics
- [3:52] Komal Dadlani - What’s it like being a female founder in LatAm versus the US?
- [5:00] Komal Dadlani - Raising money as a female entrepreneur
- [7:57] Alejandra Tenorio - Being a woman in the oil and gas industries
- [10:02] Cory Siskind - Experience as a woman in entrepreneurship
- [11:50] Cory Siskind - Advice for other women getting into entrepreneurship
- [13:03] Johanna Posada - What’s your take on genderless investing?
- [16:20] Maricel Saenz - Hurdles for women in tech
- [20:35] Marta Forero - What’s it like being a female founder in LatAm?
- [21:50] Marta Forero - How can the ecosystem help women?
Resources Mentioned:
- WeXchange 2019
- Susana Garcia-Robles
- IDB Lab
- a55 - Jackie Hyland
- Lab4U - Komal Dadlani
- La Manicurista - Alejandra Tenorio
- Base Operations - Cory Siskind
- Elevar Equity - Johanna Posada
- NextBiotics - Maricel Saenz
- Ubits - Marta Forero
Andres Gutierrez was working for a can manufacturing company in Philadelphia when he realized that web and mobile apps were disrupting the US market. When he asked friends and family in Colombia if there were any equivalents to these companies back home, he discovered an underserved market.
While most tech companies were launching in Mexico, Brazil, and Argentina, startups were overlooking 50M consumers, with a GDP of $360B. Andres decided to go back to Colombia to found Tappsi, a ride-hailing app that after operating for only 8 months got a $1M buyout offer which, to his parents’ dismay, he turned down.
In this episode, I sit down with Andres to discuss his most recent venture Tpaga, a mobile wallet that aims to give financial services to the 400M unbanked people in Latin America. We also talk about his story growing Tappsi to an exit, advice he has for Latin American entrepreneurs, and lessons learned from Tappsi that he used to start Tpaga. We also cover what it’s like to raise money and advice for going through YCombinator.
From hailing taxis to banking the unbanked / Banking the 400M unbanked in Latin America According to Andres, when he started Tappsi, hailing a taxi in Latin America wasn’t about convenience, it was about safety. With over 150 cases of people getting mugged while hailing a taxi in Bogota in 2012, Andres and his partner decided to solve this problem by creating a ride-hailing app called Tappsi. With one problem solved, another popped up: Tappsi taxi drivers couldn’t receive e-payments because they were unbanked. Andres soon realized that it wasn’t just the drivers. About 60% of the population in Colombia that works in the informal economy doesn’t have access to a bank account or any of the financial services that people in the developed world take for granted.
Learn more about Andres’ decision to build Tpaga, a mobile wallet that could affect the lives of millions of consumers, in this episode of Crossing Borders.
Tappsi’s capital efficient customer acquisition strategies Back in 2012, Colombians would send a picture of their taxi’s license plate to their friends and family as a safety precaution. Andres decided to incorporate a similar service to Tappsi in which his users would report their ride with the app on their social networks for safety purposes. By taking into account the local culture, Andres found Tappsi’s customer acquisition strategy.
Learn more about how Tappsi grew from their initial 100 drivers to 10K drivers in their first year using unconventional growth hacks.
Raising money from strategic investors Andres knew that approaching venture capital firms in Silicon Valley as a startup from Colombia, a country with a complicated history, was going to be a difficult task. He decided to apply to YCombinator and was accepted. The YCombinator stamp of approval made raising money for Tpaga much easier than the experience they had raising for Tappsi.
Find out how Andres and his partners strategically chose their investors to scale Tpaga across Latin America in this episode of Crossing Borders.
Andres Gutierrez is providing solutions for one of Latin America’s most ambitious goals: helping the 400M unbanked access credit. Through his resourcefulness and understanding of the local market, he is helping thousands of people and businesses gain access to financial services that are taken for granted in the developing world.
Show Notes:
- [1:23] - About Tpaga
- [2:24] - A day in the life of the unbanked
- [5:08] - Choosing financial inclusion
- [8:08] - Selling avocados door-to-door
- [10:11] - Family’s thoughts on starting a tech company
- [12:06] - First eight months of Tappsi
- [16:53] - How is that something that came natural to you?
- [19:23] - From the first offer to the end exit
- [22:25] - About the transition from Tappsi to Tpaga
- [25:45] - Tips for other LatAm founders
- [29:32] - Advice to Andres’ younger self
- [31:17] - Books, blogs, podcasts Andres recommends
- [33:34] - What’s next for Andres and Tpaga?
Resources Mentioned:
- Tappsi
- Tpaga
- iNNpulsa Colombia
- Start-Up Chile
- Endeavor
- SaferTaxi
- Masters of Scale - Reid Hoffman
- TechCrunch
- VentureBeat
- Biographies of Andrew Carnegie, John D. Rockefeller, and the Vanderbilt family
Pedro Sorrentino and his team were successful angel investors with multiple exits and technology executives and entrepreneurs when Pedro and his team decided to co-found ONEVC, a cross-border seed-stage firm based in San Francisco and São Paulo. He went from being a tech executive to starting his own company and then transitioned into angel investing and parlayed this successful track record into a $38M venture capital fund.
ONEVC’s cross-border vision means that they invest in Latin America and the US with very specific theses for both regions. The fund focuses on investing early into category-defining startups that operate in Latin America or startups outside of Silicon Valley, whether that be in Latin America, US or in Europe, that have the potential to go global.
In this episode, we cover the ONEVC investment thesis, and why they decided to invest against this thesis. We also discuss how Pedro thinks about helping companies he partners with and his advice to startup founders going into the Brazilian market. Lastly, we talk about how Latin America’s ecosystem is changing, advice to founders seeking funding from VCs, and advice Pedro would give to his younger self when he was first starting ONEVC.
“We are in the business of partnering with inevitability” Pedro says that with seed and pre-seed investments it’s only clear that it’s going to work after the fact. Some startups look really promising at the moment of investment, but may lose momentum for different reasons after receiving the funds. Others are an unstoppable brute force of nature; these are what Pedro calls ‘the inevitables’. Gaining access to a fund’s capital and time will only speed up the current trajectory of these types of founders.
Find out how Pedro thinks about ONEVC’s framework for finding investments that will create returns in this episode of Crossing Borders.
How ONEVC helps its portfolio companies Pedro and ONEVC try to support companies as much as they can, trying to get heavily involved with their portfolio companies. Investing means helping their portfolio companies in three key areas: raising capital, providing access to top candidates when recruiting, and assisting in sales. Pedro explains that at ONEVC they believe they need to earn their place in cap tables by helping in these three areas.
Learn more about ONEVC’s investment strategies in this episode of Crossing Borders.
Advice to Spanish-speaking founders in the Brazilian Market Pedro admits that despite Brazil’s friendly reputation, it can be a very hostile environment for doing business. He advises foreign founders to find a local partner to help introduce them to the best lawyers, accountants, and service providers when opening the Brazilian market. Pedro also suggests that building a corporate culture that can permeate both national and language barriers is key to developing a scalable business in a systematic way, as well as to attract Brazil’s top talent.
Tune in to this episode of Crossing Borders to hear more advice on pursuing the Brazilian market as a Spanish-speaking founder.
From starting companies to eventually investing in them, Pedro Sorrentino has had a long trajectory in the US and Latin American startup ecosystems. Today, as founder of ONEVC, he invests in companies like Rappi, Pipefy, and Loggi and helps them unleash their full potential in their respective markets.
Show Notes:
- [01:45] - About ONEVC, past and present
- [05:10] - ONEVC’s investment parametres: check sizes and stages
- [08:01] - Getting involved in VC
- [16:14] - Unicorns in LatAm: Brazil versus Mexico
- [18:36] - Advice for Spanish-speaking LatAm founders in the Brazilian market
- [20:52] - Deciding on ONEVC’s investment thesis
- [23:55] - Advice to Pedro’s younger self
- [25:10] - Books and podcasts Pedro recommends
- [29:11] - What’s next for Pedro and ONEVc?
Resources Mentioned:
- ONEVC
- Rappi
- Loggi
- Kovi
- SendGrid
- Mailchimp
- Atlassian
- Todoist
- “Start-Up Nation” - Dan Senor
- “48 Laws of Power” - Robert Greene
- “Meditations” - Marcus Aurelius
- “The Score Takes Care of Itself” - Bill Walsh, Craig Walsh, and Steve Jamison
“How to Get Rich” - Naval Ravikant
In the US, most people would be surprised to find that WhatsApp is the main platform for Latin Americans to communicate between friends and family, and even more surprised that its one of the main channels for businesses and their clients to communicate. Migue Morkin, an Argentine entrepreneur and founder of Sirena, explains that in Argentina, Mexico, and Brazil 70% of the population actively uses WhatsApp on a daily basis.
However, Migue noticed that businesses that used WhatsApp for sales, didn’t have a proper tool to do follow ups with their clients. Sirena seeks to solve that problem by helping businesses centralize, distribute, and answer their clients’ incoming messages from WhatsApp, Instagram, Facebook, chatbots, and websites through one app.
In this episode, I sit down with Migue to talk about his journey from working for a machine learning startup that was acquired by a global business, to starting a market place in Brazil, and the decision to pivot that led to successfully building Sirena to what it is today. We also cover how Migue thinks about raising money, advice on being a Spanish-speaking entrepreneur in Brazil, and how Latin Americans can start their own global businesses within the region.
Choosing an AI startup over a large enterprise As a child Migue would show his parents drawings of inventions he wanted to make– early inklings of an entrepreneurial mindset. After university, that innate curiosity for innovation led him to work at a startup instead of choosing the more traditional route at a large enterprise. For two years, Migue worked for the small consultancy agency that used machine learning to forecast for larger companies like Unilever. His early experience in a startup gave him insight on what it’s like to start a business.
Listen to this episode of Crossing Borders to find out what Migue learned from working at a startup that eventually got acquired by Accenture.
Rodati: the marketplace that led to Sirena Sirena was born from a project within a project. Migue’s first endeavor as an entrepreneur was Rodati, an auto marketplace in Brazil that unfortunately had to be closed. Rodati was successful in creating traffic for car dealerships, but the problem lay in the delayed responses between businesses and clients that resulted in lost opportunities. Migue solved this problem by developing a tool to improve communication with customers. This tool became Sirena.
Learn more about Migue’s decision to pivot Rodati and pursue what would become Sirena on this episode of Crossing Borders.
The language of SaaS Migue recalls one of his favorite pieces of advice from Nicholas Taleb: the best way to learn a language is by going to prison in that country. Migue took an alternate route to incarceration, and immersed himself in the Portugese language by moving to Brazil when he wanted to tackle Latin America’s largest market. When he started Sirena, he knew from early on that restricting himself to Argentina’s castellano would be limiting to a SaaS startup. Creating a product that would adapt to different cultures with ease was key to Sirena’s expansion throughout the region.
Find out why Migue stresses on the importance of learning about different cultures when engaging with a foreign market in this episode.
Migue Morkin is helping accelerate the response rate in industries where the first to answer a lead is often the one that seals the deal. He recognized a communicational problem in Latin American businesses that was costing them customers, and found a solution that allows for a smoother conversation from multiple channels across the region.
Show Notes
- [1:19] - About Sirena
- [4:17] - The pervasiveness of WhatsApp in LatAm
- [6:36] - Choosing the entrepreneurial path
- [8:31] - Foreign companies with LatAm tech teams
- [10:14] - From a consulting to a SaaS business model
- [12:38] - An Argentine launching a business in Brazil
- [14:29] - Tips for succeeding in Brazil as Spanish-speaking entrepreneur
- [16:25] - Deciding to pivot and letting shareholders know
- [18:50] - First steps after pivoting
- [19:56] - Operating in three countries
- [22:04] - Pivoting with success
- [22:39] - Process of raising money from Mexican and Argentine funds
- [24:31] - About weird term sheets
- [25:57] - Advice to other LatAm founder on fundraising
- [27:12] - Advice to Migue’s younger self
- [28:36] - Books, blogs, and podcasts Migue recommends for SaaS entrepreneurs
- [30:04] - What’s next for Migue and Sirena?
Resources mentioned
- Sirena
- Migue Morkin
- Migue’s Instagram: @migue
- Nassim Nicholas Taleb
- NXTP Labs
- Dalus Capital
- Mercado Libre
- Tomasz Tunguz’ blog
- Lost and Founder - Rand Fishkin
- Bajo del Marketing, Sirena’s podcast
Mariana Costa, founder of Laboratoria, a programming bootcamp for Latin American women, found a way to mix two worlds she was passionate about: technology and helping women. Originally from Peru, Mariana combines technology with social impact by running programming bootcamps for women from underserved backgrounds. The program seeks to prepare these women for a career in tech by placing them in jobs with a success rate of over 85%. Laboratoria started operating in Lima, but has since expanded to Santiago, Chile, Mexico City, Guadalajara, and Sao Paulo.
Laboratoria tackles both sides of the equation by propelling a digital and cultural transformation within the tech companies so that they will continue growing their teams, but with a lens of diversity and inclusion.
In this episode, I sit down with Mariana and a third special guest, her two week old baby, to talk about how she got into tech with her background in social impact, and what it was like to be on a panel in Silicon Valley with Barack Obama and Mark Zuckerberg. We also cover her advice on building a non profit in Latin America, how companies can hire more women in tech, and Laboratoria’s plans for expansion across Latin America.
Becoming an Entrepreneur While getting her Master’s degree in Public Administration and Development at Columbia University, Mariana and her husband, who is a programmer, decided to move back to Peru. Rodolfo, a friend from her Master’s program, had also moved back to Peru at the time, and together they started brainstorming on what could be done in their home country. It was clear from the team composition that it would be something on the social impact route combined with technology.
Before Laboratoria, Mariana and her team went through many ideas that didn’t get off the ground, and in that process stumbled upon a problem in the tech industry: the lack of female software developers. Learn more about how Laboratoria challenged the status quo on this episode of Crossing Borders.
“We were really lean” Mariana recalls Laboratoria’s beginnings: running a pilot with 15 students, and being amazed by the interest that several companies expressed in hiring female developers. Although it was a very low cost pilot due to their limited budget, it was the validation they needed to realize that their program had growth potential. A better understanding of the market also taught them when to be aggressive, and when to be more cautious in Laboratoria’s growth.
Learn more about Laboratoria’s impact on the tech industry on this episode of Crossing Borders.
Advice for hiring women in tech Part of what Laboratoria does is work with companies to diversify their pipeline, a process which requires open minds and policies. Mariana explains that companies need to change their prerequisites and make an additional effort to recruit outside of the traditional universities in places like Laboratoria to include more women in their pool of candidates.
Find out what companies can do to have more diversity and inclusion in their hiring processes on this episode.
Mariana Costa is creating digital and cultural transformation in Latin America’s tech industry through her work with Laboratoria. She is helping women from low-income backgrounds unleash their full potential and overcome structural and societal barriers. Teams that are built with a lens of diversity and inclusion can make Latin America’s digital economy grow more quickly.
Show Notes:
- [1:35] - About Laboratoria
- [3:45] - Becoming entrepreneurs in Latin America
- [7:01] - A picture Barack Obama and Mark Zuckerberg
- [9:28] - Laboratoria’s success rate
- [11:59] - Choosing the tech path
- [13:54] - What did you do before you saw that weird screen of code?
- [15:31] - Biggest lessons you learned from working in social impact
- [17:48] - Finding a market for Laboratoria
- [19:35] - Thoughts on international expansion
- [22:51] - Raising money for Colombia
- [25:54] - Strategies for hiring more women in tech
- [29:18] - Advice to Mariana’s younger self
- [30:50] - Books, blogs, and podcasts Mariana recommends
- [32:30] - What’s next for Mariana and Laboratoria?
Resources Mentioned:
- Laboratoria
- The Lean Startup - Eric Ries
- Masters of Scale - Ried Hoffman
- How I Built This - Guy Raz
- On Being
- Radio Ambulante
Despite Brazil’s amazing abundance in raw materials for food, Victor Santos was finding that many delivery options in large cities like Sao Paulo offered mostly highly processed foods. Liv Up is a direct-to-consumer startup that uses local Brazilian ingredients to produce high-quality and healthy frozen meals that get delivered right to customers’ doors.
Founded in March 2016 in Sao Paulo, Liv Up’s product portfolio is continuously evolving. With over 80 different SKUs to offer, from snacks to spreads, Liv Up’s team is constantly tweaking and improving their products based on customer feedback.
I sat down with Liv Up’s founder, Victor Santos, to talk about his decision to leave the finance world to start a food e-commerce, as well as how he raised $10M from some of the top venture capital firms in Latin America, including Kaszek Ventures. We also cover why investors should be looking into the Brazilian market, touching on both the opportunities and challenges the market has to offer.
Going against the grain Leaving a stable and high paying job in investment banking to start something on his own was hard to explain to Victor’s friends and family. Despite the financial stability, he realized that route wasn’t for him. As soon as he got his first bonus, he put the gears in motion to start Liv Up. Most people would have steered clear of starting a business in Brazil in 2015, yet Victor was convinced of Liv Up’s potential in transforming the food industry.
To find out more about the economic context Liv Up was founded in listen to this episode of Crossing Borders.
From half a squash court to a soccer field-sized facility Running a food startup requires a carefully detailed logistics plan. Victor explains that mapping out the whole process was crucial to starting Liv Up on the right foot. Understanding the company’s core issues made big decisions like choosing when to outsource versus keeping a process in-house a lot easier.
In this episode, learn more about Victor’s thought process and how Liv Up scaled from the size of “half a squash court” to eventually a soccer field-sized facility to prepare the meals.
Raising money for a capital intensive industry Victor set out to prove to investors that Liv Up could disrupt Brazil’s food industry. In the beginning, they funded their startup from their own pockets and with the help of friends and family. Eventually, top venture capital firms like Kaszek Ventures started taking notice. By connecting directly with consumers, Liv Up offers a more efficient business model than the traditional players in the market.
Learn more about how Liv Up raised $10M in Brazil’s thriving startup ecosystem in this episode of Crossing Borders.
Victor Santos is bringing food solutions to thousands of Brazilians living in big cities, where the pace of life sometimes means sacrificing a proper meal. Despite the risk involved in starting a capital-intensive business in a time of uncertainty for the Brazilian economy, Liv Up is transforming the food tech industry in the region.
Show Notes:
- [1:12] - About LiveUp
- [3:38] - Growing up in the suburbs of Sao Paulo
- [4:36] - Choosing the entrepreneurial path
- [6:09] - Friends and families’ reactions
- [7:38] - Brazilian economy in 2015
- [8:56] - Liv Up’s first steps
- [10:28] - Starting from a small scale
- [11:50] - Developing Liv Up’s menu
- [13:36] - Raising money in a capital intensive industry
- [15:36] - Brazil’s tech ecosystem today
- [16:37] - What to expect while doing business in Brazil
- [19:46] - Advice to Victor’s younger self
- [20:36] - Blogs, podcasts, and books Victor recommends
- [21:13] - What’s next for Victor and Liv Up?
Resources Mentioned:
- Liv Up
- Kaszek Ventures
- Shoe Dog - Phil Knight
- Leading with the Heart - Mike Krzyzewski
Luis Garza is the founder of Kinedu, an app that provides educational games and activities for parents and kids to play together. He was born and raised in Monterrey, Mexico but had the opportunity to study abroad at a young age. Luis knew from early on he wanted to give others the same educational opportunities he had been given as a child.
After college, he joined the corporate world but eventually made his way to his passion: early childhood education and entrepreneurship. His first startup was Advenio, a high-quality daycare for preschoolers in Mexico, which led to his current pursuit: Kinedu.
Kinedu encourages early childhood development at scale. Parents and teachers can access over 2,000 one-minute long videos on Kinedu’s app that provides them with content and tools to better engage in their child’s development.
For this episode, I sat down with Luis, our first guest from Monterrey, to talk about what it’s like starting a business and living in one of Mexico’s most important business centres. We cover his journey from the corporate world as a consultant, to developing a business plan for his first startup Advenio, and eventually starting Kinedu. We also discuss the cultural differences that led him to miss trains while he was attending boarding school in the UK, and what it was like to study at Stanford at a time when no one was really paying attention to tech.
Learning to be an entrepreneur in Mexico Luis confesses he felt like he was on autopilot during his first six years out of high school, studying at Stanford, then dabbling in the management consulting world. Despite his recollections of ‘coasting’ through those years, there were two things Luis knew he wanted to do. First, he recognized his privilege growing up and studying in the UK, and wanted to help other people in Mexico be as fortunate as him. Second, he knew he had to move back home and learn how to be an entrepreneur in Mexico before he could help others.
Check out this episode of Crossing Borders to find out how Luis dived into Mexico’s startup ecosystem and eventually co-founded Advenio with Rene Lankenau.
The four pillars of a “Corporate Day Care” Advenio was on a mission to reinvent childcare in Latin America at a time when no one wanted to talk about this industry in Mexico. A year before starting their project, Mexico experienced its worst childcare tragedy: the 2009 Hermosillo daycare center fire. Companies that had initially shown interest in incorporating Advenio centers in their buildings, abandoned the project. Luis set out to use Advenio to change this negative sentiment using four pillars: a high functioning model for parents, perfect safety standards, a big focus on learning, and highly trained teachers.
Check out this episode to learn more about how Luis changed the country’s perception on daycare centres in Mexico with his first startup, Advenio.
“The barrier to scale is a lot higher in LatAm than in the US” Luis has seen how the startup and VC ecosystem in Monterrey has evolved since 2010. When he started innovating, there was very little capital dedicated to startups. In the past nine years, VCs and startups have begun to operate on more equal footing and term sheets are looking more reasonable. However, he believes Latin American companies are measured against a higher bar for raising capital than US companies, which might be able to raise $10M with a simple PowerPoint presentation.
Learn more about how Luis raised capital for Advenio, and eventually Kinedu, on this episode of Crossing Borders.
Luis Garza is helping families and corporations achieve a healthier work-life balance through the magic of Kinedu’s software. After working in the Mexican ecosystem for almost ten years, Luis provides a startup veteran’s perspective on what it takes to survive the Mexican ecosystem. Listen to this episode to hear more about his fascinating journey and learn from the lessons he’s gathered through two education startups in one of Latin America’s largest markets.
Show Notes:
- [1:27] - About Kinedu
- [3:37] - Luis’ Monterrey origins
- [4:57] - A year in the north of England
- [6:17] - The Stanford experience
- [10:16] - About Advenio
- [15:05] - Lessons learned from over 9 years in the business
- [17:36] - Raising money in Monterrey 2010
- [20:21] - An overview of Monterrey’s startup and VC ecosystem
- [25:11] - Decision to start Kinedu
- [31:12] - Learning to prioritize while running two companies
- [32:09] - Investors on raising money for second company
- [34:56] - Advice to Luis’ younger self
- [36:15] - What’s next for Luis and Kinedu?
Resources Mentioned:
- Kinedu
- Advenio
- Rene Lankenau
- Bright Horizons
- Rappi
- Ignia
- Dalus Capital
- Envia Flores
- Skydrop
Ariel Arrieta knew he wanted to work in tech from the moment he got his first computer, an Atari 800XL, when he was 12 years old– a gift that changed his life. Today, he is cofounder and Managing Partner at NXTP Labs, an Argentine venture capital firm and accelerator that invests in early-stage tech startups.
During the first Internet gold rush in the late 90s, Ariel was just starting his entrepreneurial career. He saw some of his businesses fail and others do really well. After he returned $2M to a friend who had invested $10K in his startup, he knew he wanted to be in startups for life. From there, he cofounded NXTP, which become one of the most active early-stage firms in Latin America, producing success stories like Auth0, their first portfolio unicorn.
In this episode, I sit down with Ariel to talk about the evolution of Latin America’s tech ecosystem, advice for founders, and lessons learned from being an entrepreneur and investor.
Since 2011, the Latin American ecosystem grew 100% yearly Ariel believes that Latin America’s ecosystem has evolved and has more mature markets than in the beginning part of the decade. From 2011 to 2016, the average investment each year was between $300M and $500M in the market. Comparing that period with that of 2016 to 2018, the number range has grown to between $500M and $1.1B. SoftBank’s most recent $5B Vision Fund investment will be essential to maintain this momentum in Latin America.
Listen to this episode to learn more about the evolution of Latin America’s ecosystem, what allows it to thrive, and what’s keeping it back, according to Ariel.
Raising $2M with a PowerPoint presentation In 1999, four years after the Internet became more common in Argentina, everyone wanted to invest in Internet startups. Ariel was immersed in that world, building an ISP. He raised $2M in exchange for 95% of his company off of a Powerpoint deck– a deal like this would be unheard of today.
Find out how this moment made an entrepreneur out of Ariel, and the ups and downs he experienced from the Internet gold rush to the 2001 economic crisis in Argentina on this episode of Crossing Borders.
Leaving the corporate world to work with startups Inspired by his friend who had invested $10K in Ariel’s company, which in four years he converted into a $2M return, Ariel decided to leave his job at Fox and become an investor. His focus became early-stage investments in tech companies and finding the right business model for scaling. That’s when Ariel and his team began NXTP as a means to fulfill their vision to scale these investment opportunities.
Check out this episode of Crossing Borders to learn more about what it takes to scale startups and finding the right business model for that.
“We had a track record as entrepreneurs, but not as fund managers” Fundraising for NXTP proved to be a challenge since most investors wouldn’t invest without a track record. The solution was crowdfunding $25K from friends within the entrepreneurial world. These contacts included Marcos Galperin from Mercado Libre and Alex Oxenford from OLX and Letgo, who– from a business standpoint at the time –were rivals.
Listen to this episode to find out more about the entrepreneurs that came together to help Ariel and NXTP raise money for their fund.
Ariel Arrieta has experienced both the golden days of the Internet boom, as well as the frustration of having to close a business due to macroeconomic factors like the 2001 economic crisis in Argentina. Those experiences have provided him with the resilience necessary to be an entrepreneur as well as an investor and mentor for other entrepreneurs at NXTP.
Show Notes:
- [1:53] - About NXTP.
- [3:16] - Evolution of the ecosystem since 2011.
- [6:22] - Latin America’s ecosystem compared to the US.
- [8:15] - Local investors missing the “investment boat”.
- [10:10] - Chilean ecosystem and using government money in investments.
- [12:08] - Ariel’s entrepreneurial journey that led to NXTP.
- [20:00] - Biggest lessons learned from unsuccessful companies.
- [21:28] - On picking an idea for a startup.
- [24:57] - Finding the right team for NXTP.
- [29:21] - Advice to Ariel’s younger self.
- [31:26] - Ariel’s recommended books and blogs for entrepreneurs.
- [33:15] - What's next for Ariel and NXTP?
Resources Mentioned:
- Ariel Arrieta
- NXTP Labs
- Auth0
- Carlota Perez
- Y Combinator
- BID Lab
- Audible
- Secrets of Sand Hill Road: Venture Capital and How to Get It - Scott Kupor
- Trillion Dollar Coach: The Leadership Playbook of Silicon Valley's Bill Campbell - Eric Schmidt
- Principles - Ray Dalio
- AI Superpowers - Kai Fu Lee
- Troublemakers: Silicon Valley's Coming of Age - Leslie Berlin
- Brotopia Breaking Up The Boys Club Of Silicon Valley - Emily Chang
- Factfulness: Ten Reasons We're Wrong About the World—and Why Things Are Better Than You Think - Hans Rosling
- Never Split the Difference: Negotiating As If Your Life Depended On It - Chris Voss
- Fred Wilson’s blog
- Internet Trends by Mary Meeker.
After a trip to Latin America with three other friends from college, Julian Deutschle and his future co-founders wanted to solve a problem that was already solved in their native Germany: booking bus tickets online.
Friends and family back home were in disbelief when they heard they had to physically go to bus terminals to check out bus routes, and in some cases like in Bolivia, tickets were sold with pen and paper. This untapped opportunity was enough of a reason for Julian and his friends to move to Latin America and found Recorrido, an online platform that allows its users to search for and book bus tickets online.
On this episode, I sit down with Julian to talk about his decision to move to Latin America to start a tech startup, why they picked Chile despite being rejected from Start-Up Chile, and the challenges faced in starting a business as a foreigner. We also cover why Latin America is a great place to start a business and his vision on what the future holds for the region.
Latin America’s untapped bus booking industry After studying Business Administration at university and doing a finance internship in Germany, Julian and his friends realized that the traditional route their studies had set them up for didn’t provide the fulfillment they wanted. Having discovered Latin America’s potential, they decided to apply to Startup Chile, but got rejected. Still, they were convinced.
Learn more about what motivated Julian and his co founders to quit their internships, turn down job offers as consultants, investment bankers, and accountants in Germany and fly over to Chile to start a tech startup.
Starting a business in Chile as a foreigner The first obstacle Julian and his team faced was opening a bank account in Chile. Without one, they wouldn’t be able to access funding from their first angel investor in Germany. After being turned away by several banks, they worked around the problem and withdrew the money in cash from a friend’s personal bank account in Chile. Walking the streets of Santiago with a backpack full of cash, Julian realized that this would be the first of many obstacles to come.
Learn more about what it’s like doing business in Latin America as a foreigner on this episode of Crossing Borders.
Starting a Bus Ticket Marketplace: the “chicken-egg” problem Julian explains that without traction, it was near impossible to convince bus operators to use their platform. To solve that problem, they built a webpage that allowed them to create an MVP which provided users with a list of the available routes. By generating traffic, they validated the market and helped convince bus operators to deviate from their conservative ways.
Listen to this episode of Crossing Borders to learn more details about how Julian and his team developed their MVP and used it to get a foot in the Chilean bus industry.
Julian Deustchle considers Latin America to be a region with great potential for growth. His perspective as a foreigner brings fresh eyes to many of the region’s daily challenges. Julian and his team at Recorrido are helping improve Latin America’s outdated bus infrastructure with tech solutions.
Show Notes:
- [1:51] - About Recorrido
- [5:09] - German efficiency vs Latin American efficiency
- [5:55] - How did you get to Latin America?
- [8:32] - Getting started in Chile
- [16:42] - Doing business as a foreigner in Chile
- [18:38] - Foreigners tapping into the booking industry
- [20:18] - Funding locally and from abroad
- [21:12] - Advice to other entrepreneurs raising money in Latin America
- [23:07] - Biggest challenge for entrepreneurs starting a business in Latin America
- [24:24] - Inflection point in the region’s VC industry
- [26:00] - Books, blogs, podcast, documentaries Julian likes to recommend
- [27:13] - Why should foreign investors and entrepreneurs be looking at Latin America?
- [28:14] - What’s next for Julian and Recorrido?
Resources Mentioned:
- Recorrido
- Startup Chile
- Zero to One - Peter Thiel
- The Hard Thing About Hard Things - Ben Horowitz
- A Shoe Dog - Phil Knight
Susana García Robles has been working to help create the venture capital industry in Latin America since the 90s, when she launched an ambitious flagship program in Brazil to jumpstart the Latin American ecosystem. Since then, she has been an LP to dozens of funds across the region in her role as Chief Investment Officer for IDB Lab at the Interamerican Development Bank, a Washington DC based multilateral development bank focused on Latin America and the Carribbean.
In addition, Susana founded WeXchange, a platform run to empower Latin American and Caribbean female entrepreneurs and connect them to mentors and investors around the world.
In this episode, I sat down with Susana to talk about her first experience with venture capital in the region, from working in Brazil to replicating similar programs across Latin America. She offers advice to potential LPs on what to look for in successful fund managers and founders. We also cover why and how she founded WeXchange and the importance of women entrepreneurs for Latin America’s growth. Check out this episode of Crossing Borders to hear more of Susana’s extensive experience investing in the region.
Choosing a Fund Manager: Long Term Thinking When choosing a fund manager team, Susana looks for candidates who are not only in it for the money, that aren’t looking for a job, but are looking to give something to their country through innovation; they are in it for life. According to Susana, if you choose to invest in an emerging region, you will have to stick through the good and the bad times in order to get a better return. After several years of evaluating different teams, Susana is one of the most experienced investors in VC in Latin America and her experience is invaluable for those picking funds.
Listen to this episode to learn about the patterns Susana found in successful Latin America fund manager teams.
Latin America’s own brand Jumpstarting Latin America’s ecosystem also means finding Latin America’s brand. What works for Silicon Valley won’t necessarily work for Brazil, Chile, Argentina, or Mexico; people in each country live different day to day realities. Susana explains that a Latin American entrepreneur walks the streets of his or her city and can see poverty, a lack of recycling and clean water, inaccessible loans, holes in education in rural communities as well as in their healthcare systems, along with innovative solutions to healthcare, public transport and more. Latin Americans are solving Latin American problems with Latin American solutions.
On this episode of Crossing Borders, learn more about how Latin America is creating its own brand in the ecosystem, addressing problems with the right tools.
“When I die, I want WeXchange to be on my tombstone” WeXchange is a platform that focuses on Latin American and Caribbean women entrepreneurs venturing in STEM industries and connects them with mentors and investors. After taking a step back to look at IDB’s investments and operations through a gender lens, Susana wanted to help more women start companies and be successful. She set the gears in motion, commissioning a study to list all of the issues women entrepreneurs face in the region, and started WeXchange to start to solve them.
Hear more about WeXchange’s origin story and its accomplishments on this episode of Crossing Borders.
Susana García Robles is an expert on development finance innovation and has been cultivating the startup and innovation ecosystem in Latin America and the Caribbean since the 90s. She is a firm believer that entrepreneurship benefits greatly from women empowerment and is proud, among many other achievements, to be a cofounder at WeXchange. Listen to this episode to learn more.
Show Notes:
- [1:39] - Current IDB projects
- [3:01] - About IDB Lab
- [4:27] - Stats on jump starting an ecosystem
- [10:36] - How to pick a VC fund in LatAm
- [17.25] - Advice for LatAm family offices thinking about investing into VCs
- [19:52] - Supporting tech or VCs in LatAm
- [23:44] - Lessons from successful and unsuccessful companies
- [28:45] - About WeXchange
- [33:30] - Advice to Susana’s younger self
- [36:22] - Books, blogs, and podcasts Susana recommends
- [39:22] - What’s next for Susana and IDB Lab?
Resources Mentioned:
- WeXchange
- IDB
- Susana Garcia Robles
- Jeff Hoffman’s Concept of Info-Sponging
Originally from a small town outside of Sao Paulo, Joao de Paula cofounded the first Latin American startup to participate in YCombinator back in 2013. Fueled by an obsession with making an impact, he unknowingly embraced the entrepreneurial spirit from an early age. He created different projects while growing up and then later taught himself to code to start his business, which he cofounded with his friend Roberto Ricci, a former professional poker player.
After his 7-year odyssey with the online platform, which was a proto-Yelp, Joao and his partner decided to close the company. Joao took a six-month break before deciding to return to the startup ecosystem by joining Origin, a financial wellness platform that helps freelancers and entrepreneurs get financial wellness.
In this episode I sit down with Joao to talk about Glio’s early days, raising money, applying four times to YCombinator and finally getting in. Joao also offers advice to entrepreneurs applying for YCombinator , how to prepare for the interview and get the most out of the program. We also cover his return to Brazil, the decision to wind the company down after 7 years of hard work, and his current plans for Origin.
“You didn’t have much value in an early-stage startup if you’re just a lawyer” Those were the words Joao received from his best friend and Glio cofounder Roberto Ricci. Diving into the startup ecosystem hadn’t always been a clear cut path for Joao. His initial strategy to making an impact had been to study Law. However, he soon realized that was going nowhere, and around the same time Roberto had been working on what would eventually become Glio. In addition to being a professional poker player, Roberto had started the biggest poker website in Brazil MaisEV.
Find out how Roberto’s passion for starting companies, Joao’s change in career, and a conversation over a couple of drinks birthed Glio on this episode of Crossing Borders.
Learning to Code in Sickness (and in Health) Unable to find a suitable candidate to become their third cofounder with a more technical background, Joao decided he would learn to code and cover that position while Roberto focused more on design and business models. It just so happened that Joao got really sick in that moment, which Joao describes as a moment of luck. He stayed home for three months and used this time to absorb as much information as possible on coding through books and online courses.
Learn more about this process as well as some of Joao’s top hacks for learning how to code on this episode.
Fourth Time’s a Charm The Y Combinator application process served as a resilience test for Joao and his partner. As admirers of Paul Graham’s essays, Joao and Roberto knew they had to get in the program to position themselves for success. With nothing to lose, and lots of time for improvement, they applied a total of four times until they finally received the interview call.
Check out this episode of Crossing Borders to hear more details and tips on the Y Combinator application process, interview, and overall experience.
Lessons from a 7-Year Odyssey If there’s one lesson Joao cannot emphasize enough is the importance of hiring the right people. In his experience, most of his employees stayed for the long term, some even from the beginning to the end of Glio. How do you achieve this level of loyalty? By rewarding employees well and ensuring they don’t burn out.
In this episode, find out how companies can improve their hiring practices as well as other valuable lessons learned in Joao’s experience in the ecosystem.
Show Notes:
- [1:33] - Joao’s current work: Origin
- [2:27] - Flying from San Francisco to São Paulo
- [3:47] - From Brazil’s countryside to Rio de Janeiro
- [4:22] - Cultivating Joao’s entrepreneurial spirit
- [5:09] - Joining Glio
- [6:54] - Transitioning from Law school to Entrepreneurship
- [8:47] - Learning how to code
- [9:40] - Number one hack to start coding
- [11:05] – Brazilian ecosystem in 2011
- [12:29] – Jumping into Y Combinator
- [15:41] – YC Interview process in 2013
- [17:11] – The first company in LatAm to be in YC
- [17:50] – Advice to other founders applying to YC
- [22:15] – Raising $1.5M in the Valley
- [23:30] – Today’s market compared to 2013
- [25:10] – Returning to Brazil after YC
- [30:25] – Winding Glio down
- [32:08] – Lessons learned from the 7-year business odyssey
- [35:00] – Decision to join Origin
- [36:57] – Why Brazil is a great place to build a tech team
- [38:06] – Advice to Joao’s younger self
- [39:37] – Books, blogs, and podcasts Joao recommends
- [40:58] – What’s next for Joao and Origin?
Resources Mentioned:
- Origin
- Glio
- Y Combinator
- MaisEV
- Ruby on Rails
- Lambda School
- Paul Graham Essays
- The Score Takes Care of Itself - Bill Walsh
- Zero to One - Peter Thiel
The Hard Thing About Hard Things - Ben Horowitz
Andres Sarrazola caught the entrepreneurial bug at the age of 17 in his home city in Medellín, Colombia. Fast forward eleven years later, he is now the CEO and founder of Ayenda, Colombia's largest virtual hotel chain and SoftBank’s first investment in the country.
According to Andres, in Latin America around 70% of properties are independently owned, meaning they are not affiliated with any hotel chain brand. By putting small hotels under its brand name, Ayenda can help these businesses increase their occupancy rate from 30% to 75% using online advertising and booking tools.
In this episode, I sit down with Andres to talk about his entrepreneurial beginnings at 17, some of his startup failures, and how he pivoted into his current business, Ayenda. We also cover how Andres raised money for his business and the importance of writing investor updates.
The typo that made an entrepreneur A slip of the finger on a keyboard in an Internet café is what led Andres to enroll in a private university where he was immersed in an entrepreneurial environment. As the son of two high school teachers, Andres hadn’t considered entrepreneurship as a career path until he was in this new “contagious” environment. His first startup was a digital marketing agency, which was followed by spin offs including e-commerce for pet food and dabbling in the edtech industry.
Listen to this episode of Crossing Borders to learn more about Andres’ entrepreneurial beginnings in Colombia.
Ayenda: SoftBank’s first investment in Colombia Andres tells the story of how he formed a relationship with Softbank, which later led to an investment. Andres explains that Ayenda requires a lot of capital to be profitable in the long run, which is why it’s important to “fall in love” with your partners to reach different business milestones.
Why monthly investor updates are important Andres explains that investor updates are a great way of nurturing relationships with current and future investors by showing how the company is achieving different milestones. According to Andres, investors have the right to know everything about the company, both the good and the bad. He goes into depth on three main ingredients an investor update should have: consistency, transparency, with a dose of entertainment.
Andres feels its Ayenda’s financial duty to send these updates, and that the feedback they receive from them is invaluable. Find out how to write an investor update like Andres on this episode of Crossing Borders.
Show Notes:
- [1:45] - About Ayenda
- [3:16] - Raising the occupancy rate
- [5:10] - Small hotels dominate the market
- [6:53] - Catching the entrepreneurial bug
- [9:26] - Being a 17 year-old entrepreneur in Colombia
- [11:34] - Other spin offs from Andres’ digital marketing agency
- [14:49] - On starting Ayenda
- [16:41] - Ayenda’s initial business model
- [19:57] - About raising money
- [22:36] - SoftBank’s investment
- [25:45] - Ayenda’s detailed investor updates
- [29:57] - Tips on writing investor updates
- [39:35] - Perks of writing a monthly update
- [42:29] - Successfully pivoting with Ayenda
- [45:19] - Advice to Andres’ younger self
- [46:38] - Andres’ recommendations on books, blogs, podcasts, and documentaries
- [49:42] - What’s next for Andres and Ayenda?
Resources Mentioned:
- Ayenda
- Andres Sarrazola
- Softbank invests in Ayenda
- 500 Startups
- Slidebean
- This Week in Startups
- Masters of Scale
- The Founder’s Dilemma - Noah Wasserman
- The 10X Rule - Grant Cardone
- The Start-up of You - Reid Hoffman
- Never Split the Difference - Chris Voss
- Sell or Be Sold - Grant Cardone
- Blitzscaling - Reid Hoffman and Chris Yeh
- Scaling Up - Verne Harnish
- Great by Choice - Jim Collins
- Good to Great - Jim Collins
- Built to Last - Jim Collins
Andy Kieffer and his family decided to spend a year relaxing in Guadalajara, Mexico, and ended up staying. As founder of AgaveLab, Andy helps startups in the US and Mexico build tech products with local Guadalajara talent.
Originally from the midwest, Andy moved to California straight out of high school and worked on early stage tech companies, helping them build product, raise money more quickly and even get acquired. After each project, he would take a year off to travel, which eventually led him to Guadalajara.
In this episode I sit down with Andy to hear more about his story building tech companies in Silicon Valley, creating products for the Mexican market, and how he is helping solve some of Mexico’s biggest problems with his “startup apprenticeship program” AgaveLab. We also cover lessons learned from the Mexican ecosystem, why Mexico is an attractive market for starting a business as well as for foreign investment.
“We’re the craft beer of startup studios” The idea behind AgaveLab is that traditional investing doesn’t work for many potential entrepreneurs. Andy decided to found AgaveLab –which in this episode we called a “startup apprenticeship program”– to provide financial and emotional support to startup founders that in any other way would not have access to this type of help. With a limit of two startups per year, AgaveLab works closely with startup founders, helping them have a much higher chance of success. Like craft beer, they do lower volume but high-touch work.
Listen to this episode of Crossing Borders to learn more about how Andy and AgaveLab help entrepreneurs build their products and companies in Mexico.
Harvesting Mexico’s low hanging fruit After leaving the midwest at 18 years of age, Andy led a nomadic life living in Europe and the east coast, eventually settling in San Francisco for 18 years. He arrived in the Bay Area around the same time the Internet was starting to become interesting. After moving to Guadalajara, Andy started to see problems that were already solved in the US or Europe and thought that local solutions could help push Mexico forward.
Listen to this episode to find out how Andy started tapping into Mexico’s startup ecosystem and created companies through AgaveLab by engaging with Guadalajara talent.
Investment opportunities in Mexico: “It’s like going shopping where everything is 90% off” Andy explains that there are many obvious business opportunities in Mexico that have yet to be explored. In the US most of the low hanging fruit has been picked, and the investors need to invest 10x more than in developing countries to get companies off the ground. In Mexico, investors can help solve urgent problems with much less capital.
In this episode of Crossing Borders, learn more about why Mexico is an interesting place to invest in startups.
Show Notes:
- [1:42] - About AgaveLab
- [7:52] - A startup apprenticeship
- [11:15] - Handling crises in startups
- [12:51] - How did a ‘gringo’ end up in tech in LatAm?
- [17:55] - Living in Guadalajara
- [20:58] - Pointing the lens to Mexico
- [23:33] - Mexico’s obvious opportunities
- [25:19] - Financing in the US versus Mexico
- [28:17] - Top lessons learned from building companies
- [30:00] - Advice for potential investors looking at LatAm
- [32:31] - Andy’s recommendations on blogs, books and podcasts
- [33:58] -What’s next for Andy and AgaveLab?
Resources Mentioned:
- Andy Kieffer
- AgaveLab
- Rocket Internet
- Fondimex
- LobbyfixCrossing the Chasm - Geoffrey Moore
Mixergy's Andrew Warner interviews Nathan Lustig on the Mixergy Podcast. I decided to cross post this interview, since we cover my story getting to chile, what it's like doing business in Latin America and my experience with previous startups.
You can find Andrew's original podcast and show notes on his website:
https://mixergy.com/interviews/magma-partners-with-nathan-lustig/
From Mixergy:
Nathan Lustig is the co-founder of Magma Partners, an early-stage investment firm that supports the best Latin American entrepreneurs to launch and scale in the US.
Nathan literally wrote the book on what it’s like to do business in different parts of Latin America. It’s called “Crossing Borders: A Venture Capitalist’s Guide to Doing Business in Latin America.”
I wish I had read it before I flew to Mexico City to do my first set of interviews because he really explains how the world south of the American border operates when it comes to startups and business.
How do you keep a global workforce up to date on daily security threats and confirm people are ok in the event of a natural disaster? Most companies are still stuck in phone call and paper based systems that are extremely expensive and hard to update. Cory Siskind, Base Operations’ founder, realized there was a better way than the standard practice that most multinational corporations give to employees who travel abroad for work: thirty page risk reports which mostly don’t even get read. Base Operations is an app that provides just-in-time information to its users in markets with high crime rates but poor access to crime data. Global workforces can quickly get a feel for their surroundings as soon as they touch down in a new city or country with the app’s features: intuitive heat maps, safe routing, geofenced alerts, and check-ins.
Cory has always been passionate about emerging markets, specifically interested in how security and crime affect a country’s growth. But what was the spark that pushed Cory to start the business? A business plan competition while studying for her Master’s degree at Harvard!
I sat down with Cory to talk about her early interest in emerging markets, how she came up with the idea for her company (also part of Magma Partners’ portfolio as of 2018), her experience in Harvard’s business plan competition, and what it’s like to operate between the US and Mexico.
Check out this episode of Crossing Borders to hear more about how Base Operations uses data to help multinationals keep their employees safe in emerging markets.
High crime, low transparency cities During her undergrad at Tufts University, Cory became interested in international security and how organized crime can hold back development. Specifically, she focused on how these criminal organizations damage businesses and affect people’s economic growth. After spending time in Washington, DC she moved to Mexico City and became a geopolitical risk analyst and ran into a big problem: the lack of information about crime and risk management in emerging markets.
Check out this episode of Crossing Borders to hear more about Cory’s solution to this lack of transparency in emerging markets.
Seeking validation in Mexico City Cory and her team needed to be sure that their product would be something that clients actually wanted. To be sure Cory and her team moved to Mexico City for two months and spent $20kto create a prototype of their product and run initial tests, which gave them the validation they needed to move forward.
Listen to this episode to learn more about the development of Base Operations leading up to its launch in the summer of 2018, and why that initial trip to Mexico City had such a powerful effect on Cory and her team.
Why monthly email updates are so important Techstars’ Impact Accelerator was a huge propeller for Cory and Base Operations’ growth. One of the biggest lessons learned was getting into the habit of writing monthly email updates to current and potential investors. It pushed her to work harder, faster, and better by having added pressure to have something to share with their network. Multiple investors that had initially passed on Base Operations came back because of the progress they’d seen through their email updates.
Check out this episode to hear more tips Cory has to share about her experience on Techstars like key parts to include in email updates
Show Notes:
- [1:25] - About Base Operations
- [3:11] - The problem with multinationals’ current standard practice
- [4:30] - Getting involved with security and risk management
- [6:25] - From academia to entrepreneurship
- [7:26] - A passion for emerging markets
- [10:15] - Misconceptions in the US about LatAm markets
- [11:45] - Start local, then go international
- [13:40] - Motivation behind Cory’s entrepreneurial journey
- [17:20] - Product testing in Mexico City
- [19:57] - Experience in Techstars Impact Accelerator
- [21:37] - Advice for Techstars entrepreneurs
- [23:27] - Drivers for success in e-mail updates
- [24:29] - Tips on raising money
- [25:51] - Target companies for Base Operations
- [27:07] - What companies look for in Base Operations
- [29:38] - Books, blogs, and podcasts Cory recommends
- [30:41] - Women in entrepreneurship
- [33:00] - Advice for Cory’s younger self
- [33:54] - What’s next for Base Operations?
Resources Mentioned:
- Base Operations
- Cory Siskind
- Illicit: How Smugglers, Traffickers, and Copycats are Hijacking the Global Economy - Moisés Naím
- Control Risks
- Harvard's President's Innovation Challenge
- Techstars Impact Accelerator
- Bain & Company
- Gimlet's Without Fail podcast
- Harvard Business Review
- Magma Partners
Originally from Cali, Colombia, Daniel studied in the US and started a company in Silicon Valley before realizing he wanted to us his experience to solve a pressing Latin American problem: fraud. Truora, a startup that provides instant background checks, was born to fight that problem.
I sat down with Daniel for this episode to talk about why he decided to go after the Latin American market instead of Silicon Valley, how he raised money from Y Combinator, Accel, and Kazsek Ventures, and why he wants to tackle the problem of fraud in Latin America. We also discuss why he based his company in Cali and the lessons he learned building and working for three startups in Latin America and Silicon Valley. Magma has been supporting Truora since before YCombinator, so I’m especially excited to share the story of this ambitious founder from Colombia on the podcast.
Why background checks are a big deal in Latin America Background checks are customary practice in the US for reasons of compliance. Background checks are essential in Latin America to avoid fraud and criminal activity. With the rise of the gig economy has come the challenge of hiring and managing massive teams of contract workers; Truora makes it possible to run a background check on new employees in a matter of 30 seconds using a smartphone. Leveraging his team and experience, Daniel pushed Truora to early revenue by doing deals with Rappi, Uber, and Davivienda on a bootstrapped budget.
Truora is not stopping at background checks; Daniel wants to solve the problem of fraud from the ground-up. Find out how Daniel plans to grow Truora across Latin America while staying lean in this podcast episode.
If I ever got a tattoo, it would be of my flag. Daniel Bilbao used to swim on the Colombian national team, so it would be hard to find someone more patriotic about his own country. Daniel returned to Colombia to build Truora after realizing that Latin Americans are on the cusp of realizing the enormous opportunity that they have to build global companies that compete with the US, Europe, and Asia. He even spends part of his Sundays advising founders from the region.
Daniel is honest about the problems he sees in Latin America, but he quickly repositions them as opportunities. Check out the rest of the podcast to hear how Daniel plans to build a winning team across Latin America with Truora, starting from Cali, Colombia.
We work in the United States of Latin America Latin American markets are more similar than they are different, says Daniel. He contendes that they’re closer to Texas and California than people might think. His advice: do multiple geographies, and do it right away. If you feel you are spread too thin, the problem probably lies in the product or the team, rather than the growth plan. In this episode, Daniel explains why he thinks it is better to spend $50K to launch and learn in a new market than to go for huge revenue right away.
Although Truora is still in its early stages, Daniel has seen a number of startups grow, and a number of startups go down in flames. Bipi, a car rental startup where he worked, laid off hundreds of people (including him) before it failed. Find out what Daniel learned from previous startups and how he applied his knowledge to Truora in this episode of Crossing Borders.
If you have a good team and nothing else, apply. You can always apply again. Daniel has been through YCombinator twice, first with Paladin Cyber, then with Truora. Paladin went on to raise $4.5M after YC and other Silicon Valley Investors and Truora recently raised $3M from Kaszek Ventures and Accel. He knows what accelerators and investors look for and is always willing to share is advice. His tip for Latin American founders: learn to tell your story, but go straight to the point. No BS. If you are a returning listener to this podcast, you may remember that Marta Forrero (UBits cofounder) gave similar advice about her own experience in the Y Combinator interview.
Daniel is a top resource on how to get into and get the most out of Y Combinator. Listen to the rest of this episode to hear his tips on raising money from top US and Latin American VCs, and how to turn that investment into revenue.
Daniel Bilbao has been fortunate to work closely with top startups in the US and Latin America in times of success (his identical twin was an early Rappi team member) and times of hardship. His only regret was that he didn’t start innovating earlier. Check out Daniel’s story to learn how and why he made his way from doing business in Silicon Valley back to his home country to fight one of Latin America’s most entrenched problems.
Show Notes:
- [1:30] - Nathan introduces Daniel
- [2:14] - Why is fraud a big problem to solve in Latin America?
- [7:08] - The difference between background checks in LatAm and the US
- [9:42] - Growing up in Cali, Colombia
- [12:48] - How startup failure led to Paladin Cyber
- [14:10] - Where did you get the attitude to give back to your home country?
- [16:14] - Lessons learned in Daniel’s childhood
- [19:32] - Why Truora likes to hire very junior engineers
- [20:21] - Lessons learned from Beepy
- [22:38] - How does experience with Beepy and Rappi influence Truora?
- [25:37] - Why transparency is important at a startup
- [26:14] - How to build the Truora team
- [27:16] - How does the app work?
- [28:35] - How to raise money for Truora
- [30:51] - Top tips for companies applying to YC
- [32:41] - How to get the most out of YC?
- [33:30] - Advice for founders raising money in LatAm
- [35:36] - What’s next for Truora?
- [36:53] - Daniel’s recommended resources
- [38:12] - Daniel’s advice to his younger self
Resources Mentioned:
- Truora
- Y Combinator
- Accel
- Kaszek Ventures
- Magma Partners
- Paladin Cyber
- Rappi
- Influence - Robert Cialidini
- Grit - Angela Duckworth
Originally from Mexico, developing microfinance in Latin America and India was a natural step for Johanna Posada. With over 15 years of experience working in corporate finance, economics, microfinance and investing in emerging markets, Johanna, now based in Seattle, has long been involved in economic development. Currently, as Managing Director and cofounder of Elevar Equity, an impact investment fund that focuses on fintech in both of those regions, Johanna has been able to find an intersection between work that has a social component and is also business oriented.
Elevar Equity targets investment in transformative and scalable businesses focusing on underserved customers. In this episode, I sat down with Johanna to talk about her experience and lessons learned from managing four funds with more than $270M assets under management, helping startups through multiple exits and impacting millions of people. We also cover her experience in microfinance and how the ecosystem has evolved over the years, her reasons for choosing LatAm and India, why foreign investors should be looking into the LatAm investment scene, and what the future holds for Elevar.
Check out this episode of Crossing Borders to learn about Latin America’s impact investing space, and how the Elevar investment method helps people at the bottom of the pyramid build their businesses.
Elevar’s Three Pillars of Investment The concept of impact is unique to every company, and Elevar Equity is no exception to that. Aligning their business model to meet the needs of underserved customers is an essential part of the company’s thesis. When investing, Johanna mentions three pillars to keep in mind: the community that is being served, what is the best price-point and quality, and scale.
Check out this episode of Crossing Borders to learn more about the three pillars of impact according to Elevar Equity.
Founder Focused Investing Johanna is a firm believer that entrepreneurs should be chosen for their skills and their drive, not their gender. Recent conversations about this topic have led her to collaborate with the IDB and other local actors to create more visibility for women in fintech. The issue is not necessarily that women are not participating in the sector, says Johanna. In fact, some studies say that 40-50% of companies have a female co-founder! However, in many cases where the cofounder is a woman, the voice of the company tends to be a man.
Although positive discrimination is well-intended, Johanna explains that opting to invest solely on women can sometimes get complicated from a fund’s perspective as it limits the pipeline from which to choose. Hear Johanna talk more about the value that a female perspective can bring to a company in this episode of Crossing Borders.
What makes LatAm interesting from a macro and micro perspective Johanna explains why there is so much potential in regions like LatAm and India that could be interesting for investors. These reasons include changing consumer and workforce demographics, mobile phone and financial penetration, and regional macroeconomic disruptions that are turning LatAm into a powerhouse. Johanna considers that these factors combine to create resilient communities that are essential for innovation and growth in companies.
Find out how Johanna sees potential in emerging economies in regions like LatAm in this Crossing Borders episode.
Johanna Posada has had the opportunity to see the microfinance ecosystem evolve in the region throughout the past decade. She’s managed four funds, of which, one is fully divested, two are fully invested, and the fourth is in the process of investment. Whether it’s from Elevar Equity’s offices in Bangalore, Bogota, Mexico City or Seattle she strives to bring success to underserved customers.
Check out this Crossing Borders episode to learn about Johanna’s passion for combining finance with development and how she has become a leader for impact investing in the region.
Show notes:
- [1:53] - What is Elevar?
- [2:44] - Where in the world do you invest?
- [3:08] - About offices in India and Latin America.
- [5:25] - Getting into impact investments.
- [7:27] - Microfinance ecosystem in 2004-2005
- [9:31] - Biggest lesson learned from first $24M fund.
- [11:49] - Staying true to the customer and client in impact investing.
- [13:46] - What constitutes impact for a company?
- [16:13] - After the $24M fund, what happened next?
- [19:00] - Favorite company investments in LatAm and India.
- [23:51] - About fintech and financial inclusion; things people in the US take for granted.
- [26:44] - About Fund II.
- [27:17] - Experience with exits in LatAm.
- [28:45] - Do you see new exits coming from Asia or LatAm?
- [30:10] - Why should we be investing in LatAm right now?
- [31:26] - Genderless investing.
- [34:50] - Johanna’s top resources for entrepreneurs
- [36:03] - Johanna’s advice to her younger self
- [37:14] - What's next for you and Elevar?
Resources mentioned:
- Elevar Equity
- Varthana
- Samunnati
- Credijusto
- “Portfolios of the Poor” by Daryl Collins, Jonathan Morduch, Orlanda Ruthven, and Stuart Rutherford
- The Lean Startup by Eric Ries
In 2014, nearly all US-based VCs were reticent to invest in Latin America. But that didn’t stop Washington, DC based QED from building one of Latin America’s most impressive startup portfolios. Before becoming a Partner at QED Investors, Mike’s path into the finance world was not obvious. Mike’s first foray into finance was his job at Capital One where he pursued his passion for using data to solve problems.
Today, Mike lives in Tampa, Florida and is a Partner at QED Investors, a venture fund with over 100 mostly fintech investments in the US, UK, and Latin America. QED has been involved in some of Latin America’s top fintech deals including Nubank, Creditas, Credijusto, Guia Bolso, Loft, and Quinto Andar and many more.
On this episode of Crossing Borders, I sit down with Mike Packer to talk about his journey from working in banking at Capital One to joining QED as Principal, and then making his way up to Partner. We also learn about how startups should approach venture capital firms for funding and what to expect in fintech in the next coming waves within the region.
Lessons learned from ten years at Capital One When Mike was working at Capital One, it was one of the biggest data and information companies in the world. As an analyst, his decisions were heavily data driven: translating raw data into business models, and modeling supply and demand to figure out pricing, who to market to and at what time.
Working at Capital One not only taught him about the power of data, but also about how to use it both creatively and in disciplined decision making during the 2008 recession. Check out this episode of Crossing Borders to find out what lessons Mike learned while navigating the financial crisis at one of the US’ major financial institutions.
Data can’t always tell the full story. Venture Capital is an industry that requires risk taking to reach an exceptional return. When Mike transitioned from Capital One to QED, he went from a world where he had to use data to tell the story, to one where data might only tell a small part of a startup’s story. This meant taking more risks when evaluating entrepreneurs and deciding who and what to invest in. Find out how Mike decides when to take risks with QED Investors on this episode of Crossing Borders.
QED: Investing in Latin America almost by accident Over the past eighteen months, Latin America has gained significant momentum as international VC firms have entered the region. Mike explains that QED’s first foray into Latin America was more good luck rather than initial than strategy. David Velez, the founder of Nubank (valued today at $4B), talked to the QED team about their experience with Capital One, leading to their first Latin American investment. As they saw more opportunities, Latin America became a central part of QED’s thesis.
Check out this episode of Crossing Borders to learn how QED has invested in Latin America’s underserved populations and chose to invest in the region’s fintech ecosystem.
Mike Packer and QED will soon close their sixteenth investment in Latin America. Although Mike’s job is still in part tied to data, Mike has embraced the value of risk taking (even without the hard data to back it) through his work at QED. His team’s prior experience in finance gives them the ability to get deep in the details of financial services, allowing them to continue growing their portfolio within Latin America’s fintech ecosystem.
Show notes:
- [1:25] - About QED
- [3:00] - How QED lives up to its value proposition
- [4:41] - Growing up in between states
- [6:20] - Mike’s passion for systems engineering and economics
- [7:42] - A career in finance
- [9:10] - Working at Capital One
- [10:40] - Lessons learned: from Capital One to VCs and startups
- [13:01] - Learning to take risks as a VC
- [16:28] - How to contact QED as a founder
- [19:29] - Questions to ask a VC
- [21:20] - QED’s strategies and reasons for choosing Latin America’s ecosystem
- [27:20] - On building better fundamentals for the ecosystem.
- [29:25] - QED portfolio companies to look out for
- [33:40] - A soft spot for underserved markets.
- [36:16] - On fintech deals in Latin America
- [39:40] - Mike’s advice to his younger self
Resources mentioned:
- Mike Packer
- QED Investors
- Capital One
- Nubank
- Loft
- Opendoor
- Offerpad
- Creditas
- Credijusto
- Guia Bolso
- Loft
- Quinto Andar
- Rappi
- Tencent
Juan Pablo Cappello met well-known Argentine entrepreneur Wenceslao Casares when he was “living out of a backpack in New York.” After a brief career in traditional law, Juan Pablo’s career took off when he was on the founding team of Patagon, Latin America’s first online bank, with Casares and two other entrepreneurs. A few years later, in 1999, Patagon was acquired for $750M, becoming one of Latin America’s first large exits. Despite the company’s massive success, he admits to making every mistake in the book along the way. Few other lawyers, especially in Latin American venture law, have such direct experience in founding, growing, and selling businesses.
In this episode of Crossing Borders, I sat down with Juan Pablo Cappello to talk about the Latin American tech ecosystem in the late-1990s, what it was like to be part of a skyrocketing startup, and the lessons he learned while founding a startup. We also discuss his decision to found PAG.law in Miami, common mistakes made by Latin American founders, and his current view on opportunities in the Latin American ecosystem. Juan Pablo has been active in the Latin American tech ecosystem for over 20 years; check out this episode to hear a veteran’s perspective on recent changes in Latin American tech and venture capital, especially given Softbank’s recent investment announcement.
Why Latin America needed a purpose-driven law firm Juan Pablo’s current venture is Miami-based firm, Private Advising Group, otherwise known as PAG.law, a boutique law firm that helps Latin American founders and companies handle legal challenges in the US and Latin America. Growing up in Chile with a mother from the US, Juan Pablo is used to having a foot in each region and knows what it takes for LatAm founders to manage their businesses across borders. He admits that at least 50% of his referrals come from funds who want to invest in companies whose deal structures were messed up by local lawyers.
Juan Pablo’s tongue in cheek advice? Trust no one. In the past few years, venture law best practices have become relatively easy to find and understand. Listen to the rest of this episode to hear Juan Pablo’s advice on how founders can educate themselves to align incentives with their lawyers for better outcomes.
Latin American founders should go to Miami, not Silicon Valley. Of 2.8 million people living in Miami today, 2.2 million are of Hispanic origin. If you fly straight to Silicon Valley, he warns, it will be extremely hard to get noticed. The US startup ecosystem is now more diverse and founders should choose their soft landing or regional office based on industry or ease of entry. For a Latin American company used to serving Hispanic and Spanish-speaking customers, Miami is an ideal location - and much less costly than Silicon Valley. Softbank’s new $5B Innovation Fund is based in Miami.
Juan Pablo has advised over 400 startups who do business between Latin America and the US. Check out the rest of this episode to hear why he thinks startups that go to Silicon Valley right away are often mistaken, and why Miami, Boulder, Austin, and New York might be better options.
If you want to raise money, be ready to understand the venture math. When Juan Pablo was on the early Patagon team with Wences Casares in the late-1990s, the current venture capital best practices did not exist. Founders currently have access to much more information about investment instruments, venture capital models, and valuations than they did 20 years ago. However, Juan Pablo notes that most startups approach fundraising without considering the returns VCs need to present their investors be sustainable. Having a great idea is not enough, whether you are in the US or in Latin America.
In this episode, he provides rough calculations of what Latin American entrepreneurs are expected to receive in an exit to be considered a positive investment. Listen to Juan Pablo’s “venture math” and how entrepreneurs can adjust their valuation expectations accordingly in this episode.
Juan Pablo was one of the earliest actors in the Latin American tech ecosystem and provides a unique long-term perspective on the recent uptick of tech investment and innovation in the region. Check out this episode to hear how he has created a law firm that understands business in Latin America and the US and what he has learned from watching hundreds of founders try to make it in the US market.
Show Notes:
- [1:33] - Nathan introduces Juan Pablo
- [2:25] - What is PAG.law?
- [4:13] - JP’s childhood in Santiago, Chile
- [5:43] - The early days of Patagon
- [7:40] - What was the growth pattern at Patagon?
- [9:26] - Biggest lessons learned in Patagon
- [11:00] - How Latin American founders can choose a good lawyer
- [14:13] - Biggest errores LatAm founders make in legal decisions
- [19:14] - Why JP likes the Cayman Islands
- [20:36] - Cayman or Delaware LLC?
- [23:36] - Where can LatAm founders enter the US market?
- [27:47] - Miami as a gateway for the US
- [33:06] - JP’s advice to his younger self
- [39:50] - Why LatAm founders need to understand venture math
- [42:42] - The real value of advisors for startups
Resources Mentioned:
- PAG.law
- LatAm List
- Patagon
- La Escuela del Sur on LatAm List
- 500 Startups Miami
- TheVentureCity
- Rokk3r Labs
- Endeavor
- Magma Partners
- Wences Casares
Antibiotic resistance is one of the biggest global threats that most people don’t know much about. It has the potential to take us back to the days when a small cut could kill you. Maricel Saenz is tackling this problem head on with NextBiotics, a company creating new tools to kill antibiotic resistant bacteria.
If that wasn’t enough, she’s taking on antiquated stereotypes of Latin American and female founders. Have you ever heard of a male entrepreneur getting asked if he is dating his female co-founder? Maricel Saenz was advised that she should disclose that she had no personal relationship with her male co-founder near the beginning of her pitch. Maricel has bigger battles to win: specifically, the battle against drug resistant bacteria. Originally from Costa Rica, Maricel has worked in Canada, the US, Asia and South Africa to try to solve big global problems; listen in to learn how she decided to cofound NextBiotics, her most recent endeavor.
I sat down with Maricel Saenz in this episode of Crossing Borders to talk about her experience in entrepreneurship, her decision to solve hard problems, raising finance for a biotech startup in Silicon Valley, and her decision to study at Singularity University. Maricel also offers advice to female and Latin American would-be founders to help them get their first endeavor off the ground.
It’s easier to start a hard startup than a simple startup. Maricel has internalized this advice from Sam Altman. Her company seeks to solve a global problem that will potentially affect over tens, if not hundreds, of millions of people by 2050. Her first foray into solving massive international challenges involved coming up with an idea that would impact one billion people for her application to Singularity University. She was accepted for Costa Rica’s single spot in the program.
Maricel believes truly challenging problems are the most worthwhile to solve. Find out how she leveraged a background in business to create new solutions for medicine in this podcast.
Don’t fear the cold email. And if someone says no to a coffee, reach out to someone else. Most people react positively to a request for a fifteen minute call especially if it is about a specific question that they can answer. Maricel offers this advice to founders worldwide who don’t know where to start: reach out to someone you look up to, or someone in your industry. She is convinced most people underestimate themselves and do not reach for big, risky goals. With so much information available, she explains that there is no excuse for educating yourself about problems you want to solve.
Maricel knows the value of consciously creating a network while building a business. Check out this episode of Crossing Borders to hear more of Maricel’s advice for entrepreneurs looking to build their network, especially in a foreign city.
Be so good they can’t ignore you. Maricel know the challenges of raising capital in Silicon Valley as a Latina entrepreneur. She also recognizes that being Latin American might be even more of a mark against her than being a woman. If just 2% of funding goes to female founders, even less goes to female founders of color. Her solution: talk about how incredible the product is, and leave the who out of it.
While understanding about Latin America and female entrepreneurship has improved in Silicon Valley, equality is still not the norm. Hear Maricel discuss her experience as a Costa Rican female entrepreneur in biotech in Silicon Valley and how she breaks through the stereotypes in this episode.
Maricel Saenz is breaking down barriers for female Latin American entrepreneurs who are solving major global problems. Check out this episode of Crossing Borders for her actionable advice for entrepreneurs looking to get started in any new market.
Show Notes:
- [1:40] - Nathan introduces Maricel
- [2:01] - What is NextBiotics?
- [4:27] - Regulation of antibiotics worldwide
- [5:02] - Why this problem?
- [7:00] - Maricel’s childhood in Costa Rica
- [8:40] - Did you always want to be an entrepreneur?
- [9:07] - What was the entrepreneurial spark?
- [11:05] - Previous social enterprises?
- [11:35] - Experience at Singularity University
- [14:55] - Advice for would-be founders
- [17:40] - How to solve a problem for 1 billion people
- [20:18] - Choosing a co-founder
- [22:22] - Communicating with a co-founder
- [25:07] - Inflection point of choosing full time?
- [26:50] - Raising money for biotech
- [30:40] - Hurdles for women in tech
- [34:43] - Advice for women getting into tech
- [39:07] - What’s next for the business?
- [40:18] - Advantages of testing in LatAm
- [43:47] - Maricel’s advice to her younger self
Resources Mentioned:
- The Blue Sweater - Jacqueline Novogratz [BOOK]
- The Hard Thing about Hard Things - Ben Horowitz [BOOK]
- Bad Blood - John Carreyrou [BOOK]
- Zero to One - Peter Thiel [BOOK]
- Masters of Scale podcast
- Sam Altman Startup School
- NextBiotics
- Reveal
- Jorge Bardales
- Maricel Saenz
Born in Russia and raised in the US, Vera Makarov never thought she would be an entrepreneur in Mexico. Although she is now on the receiving end of investments, Vera started her career on the other side of the table: as a traditional investor who then moved into impact investing. She eventually realized she wanted to be the one working on the ground and decided to build her own business.
In 2016, she co-founded Apli with three partners. They decided to found Apli when they realized that many of their previous clients were perpetually understaffed during operational peaks leading to thousands of missed opportunities for growth. Currently it takes an average of 52 days to fill a position through the traditional system in Mexico; Apli aims to cut that time down to 24 hours.
I sat down with Vera on this episode of Crossing Borders to hear her thoughts on Latin America and other emerging markets, hiring in Latin America, and the perks of being a foreign female entrepreneur in Mexico. Having previously been an investor, she also gives great advice on what to look for in VC, as well as what they look for in startups.
Check out this episode of Crossing Borders to learn more about how Apli is solving hiring challenges in Mexico and Vera’s insights on entrepreneurship from the perspective of an entrepreneur and investor.
Wading into the shallow end of entrepreneurship According to Vera, switching from the investor’s side to being an entrepreneur wasn’t as drastic of a jump as it sounds. Before starting her own business, she spent three years at Rocket Internet launching, growing, and selling businesses in the real estate, human resources, food, delivery, and auto markets. Through her direct contact with entrepreneurs, Vera was able to learn the ins and outs of growing and scaling a startup.
Listen to this episode of Crossing Borders to learn more about Vera’s insights on starting a business - from an investor perspective - as well as the advantages and disadvantages of the Rocket Internet model.
Mexico: a land of opportunities So, why did a Russian-born, US raised entrepreneur decide to start a business in Mexico? First of all, eighty million Mexicans (approximately (⅔ of the population) are connected to the Internet through smartphones, making it a highly-connected population. As Mexico’s growing GDP may soon place it among the top ten global powers, neighbors like the US may be starting to pay attention to its technology and talent. It may also allow Mexico to leapfrog in specific industries. This situation presents a ripe opportunity for investing in tech startups in Mexico, such as Apli.
Check out this episode of Crossing Borders to learn more about Vera’s thoughts on Mexico’s dynamic startup ecosystem.
Advice on choosing investors Vera has a unique perspective on picking investors. She has invested in successes and failures, and received investment herself to grow Apli. She knows the importance of asking for a VC for more than just capital and why early rounds are the most dangerous for founder dilution.
Listen to this episode of Crossing Borders to learn about Vera’s thought process in choosing investors and how one of her smallest angel investors, in terms of tickets, was the most amazing addition to her business.
Aim high: It takes similar effort to start a big business or an SME business Vera knows the risk involved in starting a business, and how intimidating that can be. She’s been there. But she also knows there’s always a way to make it work. Rather than imagining worst case scenarios, take the jump; that’s when Vera says most entrepreneurs find out all their assumptions are wrong. In this episode, Vera offers more empowering advice on how to pluck up the courage to take a leap and start a business.
Vera Makarov and Apli are removing the friction in recruiting processes that is costing companies’ millions of missed work days per year. Vera’s advice to always think big when starting a business is reflected in her own ambitions. Although Apli started in Mexico, staying there is not an option. Check out this episode of Crossing Borders to learn more about Vera and Apli’s journey, as well as what the future holds for the company in their expansion throughout Latin America and the US.
Show notes:
- [2:26] - How Apli got started.
- [4:15] - A Russian entrepreneur in Mexico.
- [4:48] - Veering off the traditional finance route.
- [5:52] - Lessons learned from investing to be being on the entrepreneurship side.
- [9:02] - Vision on Car, Real Estate, and Job Classifieds markets.
- [10:20] - Rocket Internet: LatAm versus European and US markets .
- [11:31] - Understanding the Mexican startup ecosystem.
- [12:57] - Steps after working with Rocket.
- [14:37] - Measures of Apli’s effectiveness.
- [16:03] - On scaling Apli.
- [19:00] - About raising money for Apli.
- [20:36] - Advice to other entrepreneurs on VC funding.
- [21:49] - How to choose investors.
- [23:50] - Tips for pivoting successfully.
- [25:04] - Searching for champions to invest in you.
- [26:49] - Apli’s clients.
- [27:46] - Prospects of expansion across LatAm and the US.
- [28:59] - Next steps for Apli.
- [29:14] - Vera’s advice to younger self and female entrepreneurs in the region.
Resources mentioned:
- Vera Makarov
- Apli
- Rocket Internet
- Numa
- ALLVP
As the only Latin American woman in her Y Combinator cohort, Marta Forero is helping break the mold for women in the tech industry. From a young age, she knew she wanted to make an impact on the world. After university, she took a high-paying job, which she then left to start a business of her own, combining her passion for education for transformative growth with a love of technology to create an online university.
The result was UBits, a corporate online learning platform headquartered in Bogota, that Marta cofonded with Julián Melo. Ubits, which also operates in Mexico and Peru, focuses on training based on bits-- small training units created by industry experts...hence The University of Bits or Ubits. UBits offers corporate training in Spanish in Business, Finances, Soft Skills, and Software Skills, and is a first-mover in the space.
In this episode, Marta explains what it’s like to be a female entrepreneur in Latin America, provides tips on how to apply for YCombinator and make the most out of the experience, as well as why she and her team chose to bootstrap UBits for four years before raising money. She shares one of the more unique stories of how she met her cofounder: at a bookstore. Check out the rest of this episode to hear how Marta took UBits from Colombia to YC, and then across Latin America.
Wise Words From Dad
Most entrepreneurs, especially those from Latin America, get actively discouraged by family members when they decide to leave a stable job to follow their dreams to start a business. However, Marta’s Dad breaks this archetype and actually encouraged her to take the risk and launch her own university. He also has other pieces of useful advice for struggling entrepreneurs, and we should probably have him on the podcast someday!
Listen to my interview with Marta to find out how her Dad encouraged her to start her business, and what other entrepreneurs can learn from his advice.
A Chance Encounter at a Bookstore
Marta didn’t choose Julian as a cofounder. A book did. They ran into each other during a shared quest for a book in Bogota in 2013 and soon realized their passions for education were well-aligned. In this episode, Marta explains how she and Julian became business partners and eventually decided to work on UBits together, all after meeting in a bookstore.
Check out this episode of Crossing Borders to learn about Marta’s experience choosing a co-founder, and how to find a good match while building a business.
Tips on preparing for a YCombinator interview
After participating in YCombinator and raising $2M from investors by Demo Day, Marta is a great resource to Latin American entrepreneurs looking to approach YC. She suggests that all Latin American YC candidates learn certain financial and startup terms in English before taking the flight to Silicon Valley.
Listen to the rest of this episode to hear Marta’s advice for learning cultural communication tools to help Latin American entrepreneurs master the Y Combinator interview.
Empowering Women in Tech
Being a Latin American woman in the tech industry can potentially create barriers when seeking funding from investors. In this episode, Marta discusses the pressure she felt as female entrepreneur when she applied for YCombinator. With this in mind, she hopes to encourage and inspire younger women to challenge the paradigm and take advantage of the opportunities in tech.
Check out this episode to hear how Marta plans to bring more women into tech and entrepreneurship in LatAm.
Marta Forrero and UBits were already unique for being one of very few Latin American companies to reach Y Combinator. As a female founder, she is a part of an even smaller minority of Latin American women to participate in the accelerator program. Her inspiring story of empowering Latin American workers through online education brought her from Colombia to Silicon Valley, then back to Peru and Mexico where UBits continues to expand. Check out this episode of Crossing Borders to hear Marta tell her story in her own words.
Show notes:
- [2:44] - What is UBits?
- [3:09] - Courses the platform offers
- [4:00] - How did you decide on UBits?
- [5:26] - Why Marta decided to build a company
- [7:18] - The benefits of a supportive dad
- [9:32] - First steps in founding UBits.
- [11:32] - How did you meet your co-founder?
- [13:33] - On getting their first client
- [15:40] - Decision to focus exclusively on online courses.
- [16:52] - Toward a scalable business model
- [18:22] - When did you decide to start raising money for the business?
- [18:35] - Bootstrapping in Latin America.
- [19:40] - Applying for Y Combinator
- [23:20] -Tips for a Y Combinator interview.
- [25:18] - How did you practice putting everything into 15 second responses?
- [26:20] - Going to the US with a strategic plan and not feeling shame.
- [29:24] - How to make the most of YC
- [31:23] - Raising an investment round after Y Combinator.
- [33:05] - Advice to other Latin American founders trying to raise in the US.
- [35:10] - Being a female founder in Latin America.
- [36:40] - How the ecosystem can improve on being more gender inclusive.
- [38:20] - Advice for women looking to raise money in the US and expand their business.
- [40:46] - Marta’s top resources for entrepreneurs
- [41:47] - What's next for you and Ubits?
Resources mentioned:
- Marta Forero
- Julian Melo
- UBits
- Gamestorming by Dave Gray [BOOK]
- Y Combinator
- Lynda
- “Titanes” / “Tools of Titans” by Tim Ferriss
What do Start-Up Chile, the Copa Libertadores, and Latin America’s largest crowdfunding campaign have in common? The answer is that Chilean entrepreneur and philanthropist, Matias Rivera, had some hand in their development. Matias loves to solve problems he sees at home or abroad. Once he sees a need, he tries to create a simple and effective solution. With that methodology, Matias has founded five ventures, including his most recent startup, Fanatiz, which received investment from investors including Magma Partners. Now based in Miami, Matias has specialized in creating clever solutions in his native Chile and quickly bringing them to a global audience.
I sat down with Matias on this episode of Crossing Borders to talk about his decision to get an MBA at Stanford, his work at Start-Up Chile and in Patagonian conservation, and his advice for startup founders looking for funding from Latin America. We also discuss his views on the Latin American ecosystem, how it’s developed in the past ten years, and how to grow a business from Latin America. Check out the rest of this episode to hear Matias’ story from Chile to Boston, to San Francisco and Miami, and the many startups, NGOs and initiatives he founded in between.
Problem + pain point + desperate users = opportunity
All of Matias’ ventures have a common root: a significant problem affecting people's lives. Whether it was helping build the startup ecosystem in Chile, reforesting Patagonia, or streaming soccer (fútbol) to expat fans, his solutions focus on targeting an urgent pain point within a niche group of people. However, no matter how great the product, Matias has found the saying, “build it and they will come,” doesn’t quite hold true.
Check out the rest of the episode to learn about Matias’ clever marketing techniques that have helped him build communities across 60 countries and raise one of Latin America’s most successful crowdfunding campaigns.
Angel investment to philanthropy?
For a number of reasons, the US far outspends the rest of the world in charity and philanthropic causes. Matias has a few hypotheses; in fact, part of his Latin American philanthropy research is still cited regularly today. Tax incentives have something to do with it, but so does entrepreneurial success, he says. Early investors tend to be ex-entrepreneurs who want to give back. This line of reasoning potentially explains why Latin America has lagged behind the US in both areas.
Listen to this episode of Crossing Borders to hear Matias Rivera explain how philanthropy and angel investment are connected in Latin America, and how this connection affects entrepreneurs. If you are interested in this topic, you can also check out my article on startup investing as impact investing in Latin America.
Knock on all the doors
Raising money in Latin America is tough. While seed stage funds have become relatively abundant, Series A rounds and later coming from the region are still rare. Matias has raised capital for several of his five ventures across Chile and the US, including from Magma Partners. He gives one piece of advice that I strongly agree with, which we often give to entrepreneurs through Magma: don’t stop following up with the investors that say no or don't respond.
While this strategy might sound counter-intuitive, Matias explains how to grow a long-term relationship with a potential investor, even one who has rejected you several times. Most investors will see this connection as a positive, if you play it correctly. Listen to Matias describe how to cultivate a strong investor-entrepreneur relationship over time in this episode of Crossing Borders.
Matias Rivera has played a multi-faceted role in building the Chilean startup ecosystem – and in conserving the country’s wildlife. A lifelong entrepreneur, Matias offers advice for how Latin American founders can advocate for themselves, reach the US, and build international communities, no matter where they begin. Check out his story spanning Chile, Harvard, Stanford, Miami, and Torres del Paine National Park, and how he has built five enterprises on this episode of Crossing Borders.
Show Notes:
- 2:10 – Nathan introduces Matias
- 3:24 – Why Fanatiz?
- 4:58 – Did you always know you would be an entrepreneur?
- 6:45 – Trying to get students into entrepreneurship in 2008
- 8:35 – Getting involved at Start-Up Chile
- 11:02 – The early days of SUP Chile
- 13:12 – For-profit conservation with Patagonia Sur
- 15:07 – Highlights of projects with Patagonia Sur
- 20:21 – Philanthropy in Latin America
- 22:44 – What role do tax incentives play in philanthropy?
- 25:05 – Angel investment as philanthropy
- 25:40 – The Stanford MBA
- 27:13 – Takeaways from time at Stanford
- 28:22 – How to watch soccer abroad without Fanatiz
- 30:12 – Matias' marketing tips for entrepreneurs
- 34:18 – What’s next for Fanatiz?
- 35:53 – What’s next for the Latin American ecosystem?
- 38:14 – Advice for US investors looking at LatAm
- 39:04 – Advice for LatAm founders looking to raise
- 42:05 – Matias’ advice to his younger self
Resources Mentioned:
- Fanatiz
- Jump Chile
- Start-Up Chile
- Patagonia Sur
- Fundacion Reforestemos
- Singularity University
- Russ Roberts' Econ Talk podcast
- LatAm List
Missing appointments at a beauty salon can add unnecessary frustration to a person’s daily routine. On the other hand, low paid beauty workers may work a full day and not take a single peso home at the end of a long day away from their families.
La Manicurista, a Colombian app that provides on demand beauty services, was born to solve these problems. Two years ago, Alejandria Tenorio, Colombian co-founder of La Manicurista, started the project during her MBA at Tulane University with her business partner, María Isabel Mostesdeoca. Since then, La Manicurista has expanded from its headquarters in Cali, into Bogota and Medellin, and has raised $300,000. This year, La Manicurista is looking to add two more Colombian cities to that list, Barranquilla and Cartagena, and raise a second round of $750,000.
In contrast with the United States, where beauty services are considered a luxury, in Colombia and Latin America, these are considered necessities, even being included in Colombia’s official inflation rate tracker. La Manicurista gives its users access to hairdressing, make-up, massage, waxing, and nail services from the comfort of their home or office in less than 45 minutes.
In this episode, I sat down with Alejandra to talk about how the idea for La Manicurista originated, how she raised money for the business, and how the app improves beauty professionals’ lives. We also learn about Cali’s ecosystem, and finally Alejandra gives some advice on how to pick investors.
Growing up in Cali and selling grape juice
Enthusiastic, colorful, happy… these are the words Alejandra uses to describe the city where she was born and grew up. From a young age, she had a knack for doing business which isn’t a surprise, as the daughter of two entrepreneurs. Alejandra recalls having helped her dad out in his grape juice business, revamping and selling the artisanal product at school. This is when she discovered that she loved being entrepreneurial and that she would choose the entrepreneurial life.
From the oil and gas industry to the beauty industry
Before coming back home to Cali, Alejandra had been working in the oil and gas industries in the United States and Latin America for five years-- a stark contrast to what she is doing now. Despite the evident differences between the two, Alejandra explains how working with a big corporation in a very male dominant industry gave her the perspective as well as the proper mindset for success, regardless of gender.
Inspiration from around the world
What do Colombia and China have in common? A strong beauty service industry! Alejandra explains how La Manicurista was inspired by a similar app’s business model in China called Helijia. Putting aside capacity and cultural differences that would be found in the UX/UI design, testing out the chinese model allowed them see if their idea would in fact provide a solution to customers and create value for both ends.
Show notes:
- [1:36] About La Manicurista.
- [2:08] Why La Manicurista makes sense in Colombia and LatAm
- [3:00] Geographies and stats about the business
- [3:20] What it’s like growing up in Cali, Colombia
- [5:00] How did you know that you wanted to be an entrepreneur?
- [6:54] Cultural differences between Latin American and US
- [8:30] Studying abroad to jumpstart a career in Latin America
- [9:14] What was it like working in male dominant industries like oil and gas?
- [11:22] How the service improves beauty professionals’ work experience?
- [14:30] How technology improves people's lives.
- [14:55] Were you inspired by other industries to make this model?
- [16:47] Inspiration from Chinese beauty apps
- [18:57] Marketplace and capacity: How did you think about creating capacity on both sides of a marketplace from a cold start?
- [20:45] When did you end up raising money?
- [23:35] What advice would you give to LatAm founders thinking about doing an accelerator abroad?
- [25:47] If you could go back in time, what advice would you give yourself?
- [26:53] Blogs, books, podcasts Alejandra recommends
- [27:37] What’s next for Alejandra and La Manicurista?
Resources mentioned:
- La Manicurista
- Helijia
- Rockstart
- Y Combinator
- 500 Startups
- Techstart
- Alejandra Tenorio
Sofía Yagüe never imagined she would end up as an expert in Latin American startups and venture capital, and be splitting her time between New York and Miami. Originally from Spain, she completed her Business and Law studies in Madrid, moving to New York to do her Master’s degree at NYU, and passed the NY Bar becoming a dual licensed Spanish and New York lawyer.
An offer at a top law firm led her to Miami, where she recently started her own boutique law firm Next Legal, which specializes in venture capital in Latin America and Spain an the US. The idea for her firm came from observing the growing and changing startup ecosystem in Miami and from trying to cover the need for a bilingual lawyer that was licensed in the US but also understood the particularities of the regions.
In this episode, we cover the frequent legal mistakes that Latin American entrepreneurs make, the best structures for raising capital in the United States or abroad, as well as tips and tricks to keep startups on the right path. This episode is more nuts and bolts, with actionable stories and advice for Latin American founders. Listen to this episode to learn more about Sofía’s story and what it’s like working with investors and startups in Latin America from a legal perspective.
The growing presence of LatAm startups in Miami
The business culture in Florida can facilitate Latin American startups opening operatings in this ecosystem because of the shared Spanish language. Sofia believes that Miami is becoming a hub for entrepreneurs to meet with potential investors that don't find the right resources or the type of investor they’re looking for in their home country. Just by looking at her clientbase, Sofía knows that the reverse also happens, as more US angel investors look for opportunities in Latin America.
“US investors don’t want to invest directly in LatAm incorporated companies”
Most of Sofía’s clients are startup founders living in Latin America that are operating in the region. But investing in a foreign company can be a risky operation, especially if you’re not familiar with the laws of the country, so many US based funds require Latin American startups to have their holding company based in the US or elsewhere. Sofía and I go in depth into some of the most common legal structures that are most favorable for both operating in Latin America and attracting US funding.
Biggest mistakes made by LatAm companies
Although this advice could work for nearly any startup, we cover some of the biggest mistakes that LatAm founders make. The best part? Most of these are avoidable. From capitalization tables that haven’t be properly documented to understanding the importance of veto and pro-rata rights, Sofía has accumulated a series of tips to avoid making some of the biggest mistakes in the region. In this episode, she also provides tools to help entrepreneurs know when they are presented with unreasonable terms and how to negotiate for them to meet industry standard.
Show notes:
- [3:02] - What are you working on today?
- [4:06] - How did you decide to get into VC?
- [5:21] - What business activity do you see running from Florida to Latam?
- [7:05] - Have you seen any changes in the Miami-Latam startup ecosystem?
- [8:08] - Reflexion about the ecosystem.
- [10:16] - What are the biggest things that happened in the last 12 months? What kind of legal structures should companies be looking at if they are operating only in Latam, but want to attract US funding?
- [13:19] - What are other places where companies should be looking?
- [16:23] - Misconceptions of tax evasion in Cayman Islands.
- [19:00] - What are some of the biggest mistakes that Latam companies make when they come to you?
- [21:03] - Advice on cap tables.
- [24:17] - Overview of some of the terms that are overused or unfair for entrepreneurs.
- [26:25] - Do you have any specifics you can share on veto rights or liquidation preferences?
- [30:03] - The importance of pro-rata rights for investors. Have you seen situations where Latam investors have been surprised by them?
- [33:43] - What are some of the first legal steps and documents someone starting a business in Latam should consider?
- [36:45] - If you could go back, what advice would you give yourself?
- [38:10] - Do you have any books, blogs, podcasts, documentaries that you like to recommend?
- [49:57] - Where can people find more about you and your business on the internet?
Resources mentioned:
- Next Legal
- Nathan Lustig blog
- Y Combinator
- Refresh Miami
- Miami Angels
- Angel Ventures
- Greg Mitchell
- Rappi
- Nubank
- Endeavor
- SeriesSeed
- National Venture Capital Association
- Techstars
- Venture Deals by Brad Feld (book and blog)
Eugenio Perea is a Mexican entrepreneur, investor, and company builder, and Magma Partners’ newest Venture Partner. Based in Mexico City, his career path has crisscrossed the Mexican ecosystem, consistently returning to the idea that businesses can improve society by creating excellent products that directly solve their customers’ problems. This thesis led Eugenio from his first corporate jobs to his first companies, and finally to VC firm ALLVP, where he learned the ins and outs of startups. Despite initially planning to become a “soldier in the corporate world,” Eugenio has been a key actor in building out Mexico’s ecosystem over the past decade.
I sat down with Eugenio on this episode of Crossing Borders to discuss what he learned while starting his own companies, how entrepreneurship is changing Mexico, and how the local ecosystem has changed over the past decade. We also talk about why international VCs should look at the Mexican market and Eugenio’s hopes for Mexico’s future. Check out the rest of this podcast to hear Eugenio’s story from studying chemical engineering to being a key figure in the Mexican startup ecosystem and joining us as our Magma Partners team member in Mexico.
A rising star and a loose cannon Eugenio never planned on being an entrepreneur, but his brief stint in the corporate world pushed him toward starting his own business. He didn’t fit in well at university, either, which appears to be a common theme among entrepreneurs (myself included). Corporates and universities didn’t appreciate being questioned by a rebellious new recruit.
It didn’t take long for Eugenio to realize corporate Mexico was not for him. Listen to this episode of Crossing Borders to hear how Eugenio got recruited to join his first tech startup, accidentally created a monopoly, and learned what it meant to “move fast and break things.”
On growing a company from 2 to 50 people in a year. After pivoting from his second startup, Eugenio landed on an idea that took off. Hiring couldn’t keep up. Looking back on the experience, Eugenio had just one regret: not hiring deliberately enough. Culture fell apart as the company grew and the founders lost control of the team. He also fell into a common trap for early founders: hiring in his own image.
How did Eugenio find out he was hiring wrong? He noticed he shared a rare trait with over 50% of his employees, when only around 6% of the world had the same quirk. Check out the rest of the episode to hear about Eugenio’s inflection point, when he learned he knew nothing about building startups - despite being a three-time entrepreneur.
“Entrepreneurship will save Mexico.” While Mexico comes in 15th in the world for overall GDP, it ranks 69th for GDP per capita. Eugenio claims that regular industrialization will not close that gap; the answer is mass entrepreneurship. He is confident Mexico is on the right path. The government and wealthy families are talking about investment and startups are no longer a joke. There is still a long way to go in educating stakeholders in the market, but Eugenio is long Mexico and Latin America. He encourages foreign investors to get involved now while the risk is low and rewards are high.
Mexico is consistently Latin America’s second largest market for startups. Listen to this episode of Crossing Borders to hear Eugenio explain why entrepreneurs and investors need to stop “looking North” because Mexico and LatAm are massive markets for innovation.
Eugenio’s curiosity and creativity have led him through dozens of industries and businesses - from mystery shopping to fintech - but with a common thread. He has been deeply involved in Mexico’s entrepreneurial revolution since the start. He is a passionate advocate for the ecosystem and I couldn’t be happier to welcome him to the Magma Partners team. Check out this episode to hear how Magma’s newest team member is supporting entrepreneurs in his home country.
Show Notes:
- [1:41] - Nathan introduces Eugenio
- [2:20] - What are you working on these days?
- [3:05] - Did you always want to be an entrepreneur?
- [3:53] - Eugenio's life, 20 years ago
- [7:54] - Eugenio and university did not get along
- [12:10] - Becoming a mystery shopper
- [14:13] - Pivoting to the process redesign market
- [14:50] - Growing from 2 to 50 people in one year
- [18:45] - How can startups build culture and focus?
- [20:15] - How did you decide what to do next?
- [22:02] - Learning startups from scratch
- [24:40] - Your market is the only opinion that matters
- [25:50] - How to handle a board meeting
- [28:40] - Being an investor
- [32:05] - Growth in the Mexican ecosystem
- [36:15] - How has the ecosystem improved?
- [39:00] - Startup culture taking over in Mexico
- [40:00] - Why should international investors look at Mexico?
- [42:16] - Eugenio’s recommended blogs
- [43:49] - Why minimalism?
Resources Mentioned:
- Magma Partners
- ALL VP
- PagoFacil
- 500 Startups
- Cal Newport on Minimalism
- David Cain
- Farnam Street Blog
- Tim Ferriss
Jackie Hyland has spent the better part of a decade living, working and studying in Latin America across multiple different industries, which has given her a unique perspective into ways that technology and finance can help serve the region.
After spending time with non-profits, impact investment, real estate, traditional venture capital and the the head of Latin America for Silicon Valley bank, Jackie is now looking at ways that non traditional financing options can help Latin American entrepreneurs.
We sat down to go over her experience and take a deep dive into debt, venture debt and something as seemingly as simple as opening a bank account in order to deposit your US venture capital check.
Check out this episode to hear Jackie’s story and her wealth of knowledge on finance, venture capital and startups in Latin America.
Diversity is good for business and for building economies Jackie spent time working with a non-profit in Latin America to help women get more involved in business in politics, especially in rural areas. She believes diversity is very important not only for business, but also for helping build economies, especially in underserved markets. We talk about her experience working with an impact investment fund to help both underrepresented founders, but also to solve problems for the bottom of the pyramid. Listen to this episode of Crossing Borders to learn more about why it's important and how Jackie thinks about getting more women involved in business, politics and startups.
Entrepreneurs understand venture capital, but what about debt financing? Most entrepreneurs understand venture capital: selling a portion of your business in exchange for an investment. But most entrepreneurs haven’t explored other options like venture debt, invoice backed lending, working capital loans and other structures that are more common in the US than in Latin America. Listen to this episode to learn more about some of the tools that Latin American entrepreneurs can use to grow their businesses, while not taking the dilution that traditional venture capital requires.
Show notes:
- 1:58 - What are you working on?
- 2:24 - What are some of the sets of tools related to debt that maybe entrepreneur aren't as familiar with?
- 3:47 - Jackie’s background
- 4:11 - Did you always know that you wanted to be involved in LatAm and in tech?
- 5:28 - Biggest thing you learn working at a non profit?
- 6:11 - What was the mentoring program and why was it important?
- 6:59 - The importance of getting more women into business and politics
- 8:04 - Speaking of investments, when did you jump into the investment side?
- 8:56 - What was it like being in the ground in 2012 Mexico?
- 9:44 - What are the biggest things that have changed in the Mexican ecosystem from 2012 to today?
- 10:36 - What did you do after Angel Ventures?
- 11:05 - What was it like transitioning from real estate back into tech?
- 12:24 - Tell me about Acción, what is and why is it important?
- 13:16 - What were some of the most interesting companies that you saw or worked with while you were there?
- 14:19 - Do you have a couple of examples of things that you saw that you can share with people that aren't as familiar with LatAm?
- 17:04 - After Acción, you went to Silicon Valley Bank. What did you do there?
- 19:15 - About opening bank accounts for LatAm companies and how frustrating it is.
- 21:02 - After opening a bank account for a company, what were some of the other services that you saw were important for LatAm companies at Silicon Valley bank?
- 22:57 - Debt Deep Dive: What do you think is the most important product that LatAm tech companies should have access to that they don't have access today?
- 27:02 - Venture Debt: How does Venture Debt work, and why is it important for a startup?
- 28:50 - About people that are not putting money into test financial products (algorithm, programs, etc). Is that something that you think you might be interest in going forward?
- 32:14 - Going back to when you were a analyst; what advice would you give yourself?
On September 20th, 2017, Hurricane Maria tore through Puerto Rico, leaving a permanent mark on the Caribbean island and its people. Most budding startups shut down operations for up to a few months as the nation recuperated. One company, BrainHi, doubled down after the hurricane, helping doctors and dentists treat more patients by automating the process of taking appointments through their AI technology.
I sat down with BrainHi co-founder and CEO, Emmanuel Oquendo to share his story of how BrainHi survived the hurricane to become the first Puerto Rican startup to get into YCombinator. I’m lucky to be able to work with Emmanuel and Israel as we invested while they were in Parallel 18, Puerto Rico’s equity free accelerator. We discuss Emmanuel’s childhood in Puerto Rico, his desire to solve big problems from the island, and how to leverage his experience in Puerto Rico while pitching in Silicon Valley. Check out the rest of the episode for Emmanuel’s advice for startups who want to reach YC from Latin America and how he has grown BrainHi from Puerto Rico to the world.
Human capital is everywhere, but resources are not. Emmanuel characterizes Puerto Rico as an island where “people haven’t had it easy, so we try to support each other through the struggles.” He credits this supportive community as a key to BrainHi’s success. Yet many Puerto Ricans, especially those with higher education, end up leaving the island in search of more opportunity in the US. It’s not that the US has better talent, says Emmanuel. It just have more resources.
Listen to this episode to hear how Emmanuel came to realize Puerto Rico’s strength while he was working in Boston and how he became obsessed with solving the island’s brain drain problem.
More of an evolution than an “aha” moment. BrainHi was not the result of an epiphany that hit Emmanuel one day. After becoming fascinated with AI technology, he began creating custom chatbots and soon found they sold particularly well with one customer niche: doctors. Yet as they participated in Parallel18, Puerto Rico’s government accelerator, Hurricane Maria left the country paralyzed. BrainHi got quickly back on its feet, selling to doctors who need the technology to keep up with demand.
Listen to this episode to hear Emmanuel and his team’s inspirational story of getting going again a few days after the hurricane and how BrainHi’s sales-first approach helped them grow in the Hurricane’s aftermath.
“It felt like the world exploded.” On a night in San Francisco, surrounded by Puerto Rican entrepreneurs, BrainHi became the first Puerto Rican startup in Y Combinator. After that, it was back-to-back office hours with the accelerator’s entire network. Emmanuel’s advice to startups in YC: ask every question you can think of. No one will tell you how to build your business, but they will answer all your questions.
Check out this episode of Crossing Borders to hear more of Emmanuel’s advice for Y Combinator, including interview strategies and how to pitch to VCs in Silicon Valley if you are from Latin America.
The story of BrainHi, from bootstrapped business to YC graduate, is one that many entrepreneurs dream of. Emmanuel’s passion for combating brain drain in Puerto Rico by helping build the local ecosystem is contagious and his energy has helped drive BrainHi to success. I hope you enjoy this episode of Crossing Borders as much as I did!
Show Notes:
- [1:40] - Nathan introduces Emmanuel
- [2:07] - Where is BrainHi today?
- [3:33] - Emmanuel’s childhood in Puerto Rico
- [4:54] - What problems were you trying to solve in high school?
- [6:10] - What makes Puerto Rico so special?
- [8:00] - The education system in PR
- [9:26] - The decision to leave Puerto Rico
- [12:10] - How to take advantages of opportunities when they arise
- [13:36] - What made you decide to go back to PR?
- [16:08] - Quality of life in Puerto Rico vs. Silicon Valley
- [17:52] - Why BrainHi?
- [20:29] - Meeting his co-founder, Israel
- [22:30] - Bootstrapping the company with just $40K
- [25:06] - Getting to the first 30 clients
- [26:50] - Why Parallel18?
- [28:29] - How Hurricane Maria changed Puerto Rico
- [31:20] - Raising 100K preseed with friends and family
- [32:29] - Getting into Y Combinator
- [34:43] - Preparing for the YC interview
- [38:20] - How to make the most of YC
- [40:30] - Making sales in the Bay Area
- [42:09] - Emmanuel’s advice to his younger self
- [43:44] - Recommended resources
- [44:40] - What’s next for BrainHi?
Resources Mentioned:
- Emmanuel’s cofounder, Israel Figueroa
- BrainHi
- Parallel18
- Y Combinator
- Y Combinator YouTube Channel
-
My blog on Y Combinator Startup School
-
Crossing Borders: Sebastian Vidal
-
Crossing Borders: Abartys Health
-
Paul Graham
- Close IO Blog
Brian York left Colombia when he was two weeks old, adopted by a US family and didn’t come back until 2009. Although he grew up south of Boston, Brian never forgot his Colombian heritage and always planned to travel back to try to meet his biological family. Most people would probably go on vacation to Colombia to accomplish that mission, but not Brian. Instead, he started several businesses in his birth country (including current venture, Liftit), raised millions of dollars, and began supporting and angel investing in Colombian startups. Brian is now tackling one of Latin America’s most pressing challenges, logistics, and is already operating in almost every major city in the region.
Brian has watched the Colombian ecosystem evolve over the past decade and is long on the future of the region. In this episode of Crossing Borders (recorded in Liftit’s Bogota offices), I sat down with Brian to discuss learning from failure, transitioning from the corporate world to startups, starting a business in Latin America, and the Mexican and Colombian investment ecosystems. Check out the rest of this episode to hear from an entrepreneur who exemplifies doing business across borders.
“I always knew I didn’t belong behind a desk.” Brian York is a lifelong entrepreneur who started his first business in high school. Ever since, he knew he wanted to own his own company and control how it would grow. Despite spending a few years tethered to a desk as an accountant, it didn’t take long for Brian to make his way to Silicon Valley with his first (of many!) business ideas.
Check out the rest of this episode to hear how Brian went from CFO on Chris Sacca’s fund, Lowercase Capital, to becoming a tech entrepreneur in Silicon Valley before his 30th birthday.
Learning from first failures Brian’s first tech startup had a $3M runway and still failed...hard. It may have been a rude awakening, but that experience trained Brian to be a faster, smarter, and better entrepreneur. Among the biggest lessons learned: never be a solo founder. It’s just too hard to go it alone.
As a serial entrepreneur, Brian knows what it takes to get a company off the ground and raise money in Latin America and the US. Listen to this episode to hear his advice for founders; it’s equally applicable for people on their first business and those who are on their fifth!
Initial Traction: Building Liftit on Facebook and Whatsapp Aspiring founders often think they need a lot of money to test their ideas before a business can get off the ground. In this episode, Brian explains how he got the first three customers for his Colombian startup, Liftit, spending just $5 a day. Everyone’s vision for fixing the world can really be boiled to one testable detail, says Brian. Find that detail, build it, and figure out if anyone is willing to pay you before you raise money.
Increasingly VCs worldwide expect to see proven traction from entrepreneurs before investing in a startup. Check out this episode to hear Brian explain how he raised $16.5M from across Latin America for a company he originally ran through Whatsapp.
Brian York’s current startup, Liftit, is active in all of Latin America’s biggest markets, and it’s growing fast. Brian has faced advantages and disadvantages that few other Latin American founders have seen, yet his advice applies to entrepreneurs across the globe. Tune in to this episode of Crossing Borders to hear how Brian scaled a business across Latin America to solve one of the region’s most entrenched problems: shipping logistics.
Show Notes:
- [1:48] - Nathan introduces Brian
- [2:08] - Founding Liftit and the business today
- [3:05] - Why Liftit was founded in Bogota
- [4:13] - Did you always know you were from Colombia?
- [5:13] - Brian’s first business at age 15
- [9:06] - What pushed you to jump into tech entrepreneurship?
- [10:40] - Creating the first “Facebook for sports fans”
- [12:22] - Raising 3M for a business with no business model
- [13:16] - What to do with zombie companies in LatAm?
- [14:20] - Lessons learned from first company
- [16:12] - The next two startups
- [19:48] - How Brian York has evolved as an entrepreneur
- [20:58] - How did you choose Liftit?
- [22:47] - Why outsource development?
- [23:54] - Why outsource to LatAm?
- [27:58] - How did you get Liftit started?
- [30:20] - How did you know it would be a real business?
- [32:30] - Planning an international expansion
- [33:40] - Choosing investors
- [36:00] - Biggest difference raising in Colombia vs. US
- [38:30] - Differences between Colombia and Mexico
- [40:20] - Why last-mile delivery in LatAm?
- [44:30] - How are opportunities for entrepreneurs changing in LatAm?
- [47:17] - Brian’s advice to his younger self
- [49:26] - What’s next for Liftit?
Resources Mentioned:
- Brian York on LinkedIn
- Angel Celis Botto
- Felipe Betancourt Celis
- Y Combinator Startup School
- Liftit
- Bassin Ventures
Some entrepreneurs are born, others are made. Federico Casas identifies as the former. A lifelong entrepreneur, Federico started his first business at age eight, and hasn’t stopped since. As one of the first movers in Mexico City’s budding startup ecosystem in the early 2000s, Federico has watched Mexico and Latin America undergo a tech revolution and has been evolving his work alongside it every step of the way. After starting and selling multiple businesses, Federico dabbled in venture capital and now works on both sides of the table as an angel investor.
I sat down with Federico to discuss startup successes and failures, the evolution of the Mexican ecosystem, advice on raising capital in the Latin American market, and how to empower more people from non-traditional backgrounds to become entrepreneurs or investors. Check out this episode to learn how Federico exited two businesses before the age of 30 and went on to impact the ecosystem as an angel investor as well as entrepreneur.
I have no fear of letting go of my businesses.
Federico Casas has built multiple businesses, and is able to move on quickly when an idea is no longer worth pursuing. That’s not to say he doesn’t know when to put his head down and work hard, but Federico is not an entrepreneur that falls in love with his business and doesn’t know when to stop. He sold his first and third companies (one of which was ridesharing company Aventones, acquired by BlaBlaCar) and continued to search for new ways to support the ecosystem using the knowledge he had acquired.
Federico isn’t afraid of building and testing models quickly, even if they fail. This mindset is still relatively uncommon in the Latin American ecosystem, so tune into the podcast to hear Federico discuss his startup successes and failures, and how they taught him to focus on his strengths.
“Joining VC is when I really grew up” On the investor side, Federico tested almost as many models. He’s been an angel investor to company builder, to founding partner of a VC firm and he loves helping helping startups as he had in building his own. However, it took another acquisition to teach Federico where he really wanted to be in the entrepreneurial ecosystem: on the startup side. He currently is working on multiple projects and is part of 0BS, a group of successful entrepreneurs who are investing in early stage companies together.
Check out the rest of the podcast to hear what Federico learned from working in venture capital and how it inspired him to experiment with the model.
In Latin America, be willing to bootstrap first. In Silicon Valley, it might be possible to raise a round from a PowerPoint, but not in Latin America. Federico’s advice both to entrepreneurs and investors: hungry founders who bootstrap and test their models first are a better investment. However, undoing the classism that still plagues Mexico’s (and much of Latin America’s) ecosystem requires a change from the top. Technology may be a democratizing force, but venture capital is still a long way from catching up.
Listen to this episode of Crossing Borders to hear Federico Casas’ advice on how VCs can provide opportunities to less-privileged people in the Mexican startup ecosystem and why this change can build better businesses.
Federico Casas is a prolific entrepreneur and investor in the Mexican ecosystem who has helped tech in Latin American evolve since the start. Check out the rest of the podcast to learn more about his first acquisitions, his advice for founders in Latin America, and why he says entrepreneurs should read novels and not business books.
Show Notes:
- [1:24] - Nathan introduces Federico
- [2:00] - What kinds of projects have you been working on?
- [2:48] - Did you always know you would be an entrepreneur?
- [6:44] - What did you study?
- [8:23] - What made you decide to sell the business?
- [9:54] - Federico’s thoughts on selling his company
- [10:27] - What did you do next?
- [11:44] - Running out of money
- [13:55] - The Mexican ecosystem in 2009
- [15:50] - Did you consciously set up a background business?
- [16:29] - What brought you to found Aventones?
- [19:20] - Federico’s advice on founder dynamics
- [21:40] - When did you know Aventones would work?
- [23:04] - Investment in Mexico in 2012
- [25:03] - The acquisition experience
- [26:33] - Side projects during Aventones
- [28:28] - What made you decide to invest as an angel?
- [29:56] - From angel investor to company builder
- [32:21] - What kinds of companies did you build?
- [34:20] - Post-company builder, become a VC
- [36:25] - Top lessons learned from VC
- [38:27] - What did you do after VC?
- [41:33] - How do you differentiate your startup from early-stage VC?
- [44:47] - Why does 0BS use unanimous votes to invest?
- [49:25] - Advice to LatAm founders looking to raise money
- [50:45] - Are things getting less classist?
- [51:37] - How to give more opportunity to more people in the ecosystem
- [54:14] - Federico’s advice to his younger self
Resources Mentioned:
- Federico Casas on Linkedin
- 0BS
- Aventones acquisition
- Mountain Nazca
- 500 Startups
- ALLVP
- Endeavor Mexico
- Originals: How Non-Conformists Move the World by Adam Grant (Book)
- East of Eden - John Steinbeck (Book)
- Ocean Sea - Alessandro Baricco (Book)
- Open: An Autobiography - Andre Agassi (Book)
- Books by Hermann Hesse
Daniel Undurraga never thought he would sell even one Latin American company to a company in the US market, but with the recent US$225M acquisition of Cornershop, a grocery-delivery app he has officially sold two startups to US companies. His first startup, Needish, was the basis for Clan Descuento, a Chilean Groupon clone that was acquired by Groupon in 2010. Clandescuento's acquistion was before most people in Chile had heard of startups!
Daniel is a lifelong entrepreneur with his share of failed projects, but ever since he and his business partner Oskar Hjertonsson found their niche in Latin American e-commerce, they’ve become an example for the whole ecosystem.
I sat down with Daniel on this episode of Crossing Borders to talk about the Latin American startup ecosystem, living and working across borders, and advice for founders who are launching and scaling in Latin America. We also discuss the backstory behind Cornershop’s decision to not raise capital in Chile and their experience raising money from funds across in Latin America.
See yourself as a global company from the start Daniel Undurraga knows what it takes to scale a company from a small country like Chile to the rest of Latin America. Cornershop launched in Chile and Mexico simultaneously because the founders realized dominating only the Chilean market wouldn’t create a company with scale. Rather than consolidating in their first market, then expanding, Cornershop took a global approach from the first day by creating processes that were “multi-currency, multi-language, and multi-time zone.”
For startups just starting to consider scaling, Undurraga suggests incorporating outside your home country, such as in the US, UK or Cayman Islands. It can make expanding easier, plus make you act like a global startup from the beginning. Check out the rest of Daniel’s tips for scaling in the Latin American market in this episode of Crossing Borders.
You haven’t sold the company until you sell the company Having already closed an acquisition from Groupon in 20010, Daniel knew how complicated selling Cornershop could be. The whole process took almost a year and they couldn’t tell anyone about what was happening until they closed the deal.
Find out how Daniel handled the Cornershop acquisition, and why the team continues to operate independently, in the rest of this episode.
Why didn’t Cornershop have any Chilean investment? Both Cornershop founders took to Twitter after the exit to discuss the role of Latin American funds in supporting Cornershop. In particular, many people speculated why Chilean VCs hadn’t invested; their only Latin American VC investor was Mexican firm ALLVP. To learn more about ALLVP, you can listen to my recent podcast with the fund’s cofounder, Federico Antoni.
Daniel’s explanation for the lack of Chilean investment is one that we discuss frequently at Magma Partners. Between timing, CORFO restrictions and mandate, most Chilean funds would not have been able to get into the deal. However, Cornershop’s and Clan Descuento’s first angel investors were the founders' Chilean friends and family. Learn more about how Cornershop’s founders have handled this debate since the acquisition in this episode of Crossing Borders.
Show Notes:
[1:21] - Nathan introduces Daniel Undurraga
[2:02] - Inside the acquisition process
[5:07] - How has living in different places influenced your life?
[6:06] - What do you see in the Chilean ecosystem now?
[9:14] - Did you always know you wanted to be an entrepreneur?
[12:00] - What was it like trying to raise money in 2007 in Chile?
[14:12] - The background on Needish
[21:02] - Why did you decide to go to San Francisco?
[24:58] - VCs in LatAm or US?
[26:22] - What was your experience with Chilean funds?
[28:00] - Advice for founders on raising money
[29:50] - How can copycat companies be successful in LatAm?
[31:00] - Why launch in two countries at once?
[32:40] - Stay in one country or target the region?
[34:15] - When did you know the company would succeed?
[36:00] - If you could make one change to the LatAm ecosystem, what would it be?
[38:10] - What’s next for you and Cornershop?
[39:15] - Daniels advice to his younger self
Resources:
- Clan Descuento
- Needish
- Cornershop
- ALL VP
- My podcast with Federico Antoni
- Why Magma Loves Corfo
- Latin America’s Groupon Mafia
Venture capital, especially in Latin America, can often seem like a black box where founders have very little access to information about what happens on the inside of the firm. I’ve gotten so many questions about how to apply, when do it, pitfalls to avoid and so many more.
On the last episode of Crossing Borders, I interviewed Komal Dadlani, CEO and cofounder of Lab4U. One of her conditions for the podcast was that she could then turn the microphone around on me and ask all the questions she wanted to know about venture capital...of course I said yes! It was a great to share what we’ve learned in five years of VC and share how to best raise venture capital form Magma Partners. This episode is a combination of the questions Komal asked me and the most common questions I get via email, Twitter, Facebook, and LinkedIn.
As Komal wondered, many entrepreneurs ask themselves how VCs analyze companies that they are considering for investment, and why they choose to invest in a specific companies. Others are curious about dilution, deal structure, or even the operations of the Magma team.
This episode was an opportunity to answer those questions. If one person asked, then at least ten people were probably thinking the same thing. Check out this episode to hear me answer Komal’s questions and delve into the most common questions I get on social media.
The Magma Application form The most common question I get through almost every channel is: How do I get in touch with you? Short answer: you’re already in touch with me! You’ve either written me an email, connected on LinkedIn or are in a Twitter message. Ask the question directly there! But if you want advice on your startup or for us to look at your business for an investment, fill out the application form on our website. Everyone, whether they are our LP’s brother, a previous founder or someone with no connections at all, can reach our team 24/7/365 from our online form.
Why do we use an application form rather than requiring an introduction? Check out the rest of this episode to explain how this form levels the playing field for entrepreneurs looking for early-stage capital in Latin America.
Everyone makes an investment thesis and then immediately breaks it. Everyone at Magma Partners has been an entrepreneur. We started Magma in part to share that experience with other founders in the ecosystem, and in part to fill gaps we saw in funding structures in Chile. Our first thesis was built on models we could see were working, but that doesn’t mean we were successful with all our first investments. We’ve learned lots of lessons along the way, but especially in the first two years.
Komal pushed me to explain what lessons I could bring from this first fund into our second fund, which is currently open. Looking back, we made many mistakes that I wouldn’t make now, knowing what I know today. Listen to the rest of this episode to find out how our Magma I investments impacted our investments in Magma II.
Fucked up Cap Tables and other startup nightmares I plan on writing a full blog on the terrible cap tables we have seen during investments, but I also recently got a question about dilution on Twitter. Just this year, we had to pass up on 5-10 investments because their cap tables were so messed up that we could not enter the deal. This issue is unfortunately quite common in Latin America as well-meaning funds, angels and family offices have started investing directly while not using standard terms or taking high percentages of equity. Luckily, few investors are actually trying to screw over the entrepreneur; they’re just not as familiar with startup investing and how its different from a traditional investment.
Check out the rest of this episode to find out the two most common mistakes we see on cap tables - even for an early-stage startup - and how to avoid them. We are also happy to review any startup’s term sheet if you would like a second opinion on the deal. We have read thousands of term sheets over the past few years and have a pretty good idea of what might be a red flag. To send a term sheet to our team for review, please reach out via our form magmapartners.com/apply and check the “feedback” box.
How Magma Partners supports founders We will work as closely with founders as they would like. We don’t only focus on returns to the fund when deciding how much time to spend with one of the startups in our portfolio; we try to help all startups, but some end up with more help from our team. Why? Some entrepreneurs prefer a less close relationship. Others want advice, but don’t take it into account, no matter how many times we meet. Others follow advice blindly. We’ve found over the years that neither of these options leads to the most successful company.
Check out the rest of this episode to hear my hypothesis on what makes a great founder, and what makes a founder easy to work with. It has nothing to do with the amount of money the company has raised or how much they make in sales. I’m always happy to spend large chunks of time with any of the companies in our portfolio if they would like the support.
Show Notes:
[1:06] - How do I get in touch with Nathan and Magma Partners?
[6:54] - Nathan’s transition from entrepreneur to investor
[9:08] - Developing an investment thesis for Magma’s first fund
[12:20] - What did Magma’s first fund invest in?
[15:23] - What did you learn from Magma I to apply to Magma II?
[22:07] - What do you look for in a company when you consider investing?
[27:30] - Magma II investments
[31:12] - The second most-asked question on social media
[33:38] - What is the ONE biggest reason you invest in a company?
[34:43] - Is it okay to ask my investors why they want to invest in me?
[36:15] - What is the usual stock dilution in every round?
[43:06] - How do experienced VCs educate founders on deals?
[46:57] - How do you choose to work closely with a startup?
Resources Mentioned:
- Magma Partners Application form
- Lab4U
- Start-Up Chile
- Webdox
- BrainHi
- Podcast App
- Jooycar
- PropertySimple
From a very young age, Komal Dadlani has wanted to make a difference in the world. After studying the careers of people who had changed the world - Albert Einstein, Marie Curie, Pablo Valenzuela - Komal realized that she wanted to be a scientist, specifically a biochemist. Studying science in Chile is not easy; up to 88% of schools don’t have lab equipment, and even those that do are not using it. This struggle inspired Komal to cofound Lab4U, a company that democratizes science by turning smartphones into scientific experiment devices. Komal has grown Lab4U across Chile, the US, and Mexico, while working alongside the Inter-American Development Bank to test her educational tools and overcoming the challenges of being an immigrant, female founder starting her company in Chile and doing business across borders in Silicon Valley,
I was glad to finally have a chance to sit down with Komal to talk about raising capital across Latin America and the US, growing up as the child of immigrant parents in Chile, and how a serendipitous Startup Weekend run by Start-Up Chile entrepreneurs launched her into her entrepreneurial career. Check out this episode of Crossing Borders to learn how Komal journeyed from Arica in the North of Chile to Santiago, and finally to Silicon Valley.
You can’t learn to ride a bicycle by reading a book about it. While she studied science in high school, Komal realized that many students struggle with the theory involved in scientific education. Lab4U exists to make science memorable and relatable. For example, rather than reading about acceleration and velocity, the app encourages students to slide their phones down various surfaces to understand the concept through experiments. However, Komal didn’t originally think of using smartphone technology to solve the problem she perceived in scientific teaching in Latin America.
Listen to this episode to learn how Komal arrived at her first business idea, and how her co-founder and mentors helped develop the idea into Lab4U.
I always wanted to make a difference, but I never knew how people make a difference. Komal’s first experience with startups happened during a Startup Weekend event at her university hosted by Start-Up Chile entrepreneurs. They promised to teach people how to change the world in 54 hours. This proposal was particularly attractive to Komal, who was studying a Masters in Biochemistry with the idea of working in a lab to make a brilliant scientific discovery. Knowing nothing about startups, venture capital, or even what a pitch was, Komal entered the hackathon with a plan to democratize science.
Startup Weekend launched Komal into her current career, although not in the way she might have expected. Check out this episode of Crossing Borders to learn how Komal transitioned from the lab to pitching her startup to Silicon Valley investors.
If an investor treats you differently because you are a woman, walk away. Komal is a female immigrant founder in a highly-conservative and classist society. Unfortunately in this aspect, Silicon Valley doesn’t look all that different from Santiago. Having raised money in the US, Argentina, Chile, and Mexico, Komal can share her experience on how VCs and other entrepreneurs treat women across the Americas. She offers advice to female founders on choosing angel investors and venture capitalists who will grow with the company and open the right doors. While targeted toward women, her advice applies to all entrepreneurs.
What is the value of an investor to Komal? “I want their network, not their net worth,” she says. Find out how Komal has grown her company across borders through a strategic network of investors and partners across Latin America and the US.
Komal Dadlani is an example of a smart, dedicated, scrappy entrepreneur who can get overlooked because she started her company in Chile. She even quoted one of our favorite sayings at Magma in our interview, saying: talent is evenly spread around the world, but opportunity is not. Lab4U is her way of democratizing opportunity so the next Marie Curie or Einstein can come from a Brazilian favela or a slum in Mumbai. Check out the rest of the podcast for Komal’s inspiring story and her advice to future founders and budding scientists around the world.
Show Notes:
[1:20] - Nathan introduces Komal
[2:38] - What does Lab4U do?
[4:30] - Komal’s childhood in Arica
[6:10] - Why did your parents choose Chile?
[8:30] - Why Komal hated growing up in Santiago
[10:42] - Why science?
[12:40] - Diversity in Universidad de Chile’s biochemistry department
[14:30] - What made you take the leap to start a company?
[18:30] - How Lab4U went from idea to company
[19:52] - How did family and friends take it?
[23:40] - What is the problem you want to solve?
[26:27] - The fundraising process in Chile, US, Argentina, and Mexico
[27:41] - Lessons learned in fundraising
[30:24] - Thoughts on being a female founder
[34:18] - Lessons learned in Silicon Valley
[38:32] - What’s next for Lab4U?
[41:04] - Komal’s advice for her younger self
Resources Mentioned:
- The Hard Thing about Hard Things (BOOK) - Ben Horowitz
- Delivering Happiness (BOOK) - Tony Hsieh
- Measure What Matters (BOOK) - John Doerr
- Conscious Business (BOOK) - Fred Kofman
- Lab4U
- Start-Up Chile
- NXTP Labs
- Komal’s Mother of Innovation Award from Toyota
- Magma Partners
- CasaCo
As Start-Up Chile’s first Executive Director, Jean Boudeguer was one of the first people I met when I arrived in Chile. Jean is actually the only ex-Start-Up Chile Executive Director who had not yet appeared on Crossing Borders!Jean faced unique challenges as Start-Up Chile's first director. He had to build the program, yet didn't have any previous governmental experience. After Start-Up Chile, Jean went on to build two fintech startups, Cumplo, a peer to peer lending business and Clay, an accounting software for Latin America.
I sat down with Jean on this episode to discuss how he transitioned from a traditional career as a software engineer to working in the government and finally to becoming an entrepreneur. Jean understands the challenges and benefits of working in the private vs. public sector in Chile and what it's like to build businesses. Check out this episode of Crossing Borders to learn from one of the main actors responsible for helping build up Chile’s entrepreneurial ecosystem.
We couldn’t ask too many questions working in government Trying to build a startup organization inside of a government agency means fighting bureaucracy. Jean realized that if he was to move quickly to create the infrastructure for Start-Up Chile, he would not be able to fully follow protocol. Despite receiving plenty of negative feedback, his team blasted forward, “breaking some eggs” along the way, but also paving the way for more agile government processes.
Jean learned to strike the balance between moving forward rapidly while not breaking too many rules as he built Start-Up Chile. Find out how these skills helped him as an entrepreneur by tuning in to the rest of the episode.
If you want to work in Fintech, get ready for the regulations If you thought working at a startup would be less bureaucratic than the government, Jean would probably push you to think again. As a software engineer directing peer-to-peer lending service, Cumplo, after leaving Start-Up Chile, Jean says he needed to know as much about legal issues as about the tech. Fintech is a highly regulated industry and you won’t get far without a lawyer or two.
Learn how Jean was able to transition from Start-Up Chile to directing a four-person startup (and growing it to a team of 60!) in this episode of Crossing Borders.
Latin America’s tax system is much more advanced than the US Chile’s tax system has been 100% electronic since the early 2000s. With SII (Chile’s version of the IRS) managing all invoices, tax reconciliation is much easier in Chile, and in many other parts of Latin America, than in the US. Clay, Jean’s second startup, uses these simplified tax systems to provided automated accounting services to startups and small businesses. While Chile's tax system is the most advanced in Latin America, Colombia and Mexico aren't far behind, making them ideal markets for Clay’s expansion.
Check out the rest of this episode to hear Jean explain how Latin America’s tax systems help startups manage their capital and taxes more efficiently, and how Clay can automate these processes.
Jean has played a big role in helping build one of the central programs in Chile’s startup ecosystem, Start-Up Chile. After going on to develop two fintech startups, he has seen entrepreneurship in Chile from every angle. Check out this episode of Crossing Borders to learn more about fintech in Latin America and about the origin story of Start-Up Chile from its first Executive Director.
Show Notes:
[1:18] - Nathan introduces Jean
[2:19] - What are the accounting challenges for small businesses?
[4:24] - Chile’s advanced e-invoicing system
[5:05] - Jean’s life story
[6:37] - What did you do before Start-Up Chile?
[8:20] - What did family think of working for government?
[10:30] - Designing Start-Up Chile from scratch
[11:56] - Biggest challenge for the first round?
[15:44] - Lessons learned about startups while working in Start-Up Chile
[17:52] - Deciding to start a company
[20:52] - What did you learn going to government to fintech?
[22:50] - Why is P2P lending important in Chile and LatAm
[24:09] - How did you decide to launch Clay?
[29:03] - How can you scale out of Chile?
[30:08] - What kinds of businesses use this?
[32:43] - Jean’s advice to his younger self
[34:51] - What’s next for Clay?
Resources Mentioned:
- Start-Up Chile
- Cumplo
- Clay Technologies
- Todoist
- Amir Salihefendic on Crossing Borders
- Amir’s Twitter
- Jean's Twitter
With the recent acquisition of Cornershop, Rappi's $200M round and Uber Eats continued expansion, Latin America’s last mile delivery market has heated up. In the past 10 years, over 50% of the region connected to the Internet, creating a booming market for e-commerce and other online businesses. The growth of food delivery startups, especially in Latin America’s biggest markets, has been propelled by this trend. The Brazilian market leader is iFood, with over 6 million users, 1000 employees, and 10,000 independent delivery drivers.
In this episode of Crossing Borders, I sat down with iFood CEO, Carlos Moyses, to talk to him about the delivery market opportunity, iFood’s growth through acquisitions in the early 2010s, building culture across borders, and Carlos’ personal story from finance to startups. Check out this episode to learn why some of the biggest players in Brazil’s startup ecosystem have backed this food delivery business.
Food delivery is more than just pizza Brazilians were very quick to adopt online food delivery. Carlos says Brazilians were already used to ordering pizza, so picking up new cuisines was a small change in behavior. The hardest part of building iFood was explaining to restaurant owners and users that delivery was not the same as a daily deals company, which were growing very quickly across Latin America and might have been Brazilians only other ecommerce experience at the time.
Check out the rest of this episode to hear Carlos explain who his biggest competitor is (hint: it’s not a food delivery company!) and how food delivery is evolving in Brazil.
Tech is the only way to quickly scale a business Carlos got his start in traditional business as a financial advisor. Like many of my previous guests, he watched as tech companies surged past traditional corporations by eschewing bureaucracy and relying on talented teams to scale at an exponential rate. Carlos’ intro to tech through daily deals sites Grupalia and Peixe Urbano launched him into the world of entrepreneurship during a time when Groupon clones across Latin America were receiving unprecedented international investment.
Find out how Carlos transitioned his entrepreneurial career from daily deals to food delivery in this episode of Crossing Borders.
Why iFood scaled outside of Brazil Very few Brazilian startups choose to enter the Spanish-speaking Latin American market. iFood already has a presence in Mexico and Colombia, and plans to expand further. Carlos attributes this expansion to their international investors, Naspers and Movile, who have pushed iFood to become a global company. With over 1000 employees, many of whom are former entrepreneurs brought into the team via acquisitions, iFood is well-placed to continue dominating the Brazilian market.
Check out the rest of the episode to learn how Carlos builds company culture across borders to maintain unity at iFood.
Brazil is Latin America’s largest economy and also one of its most challenging markets. iFood is betting that Brazilians will be ordering more delivery over the coming decade, and they have some big names backing them. Listen to iFood CEO, Carlos Moyses, explain the potential of the Brazilian market in this episode of Crossing Borders.
Show Notes:
[1:21] - Nathan introduces Carlos
[2:34] - Brazil’s tech ecosystem
[4:15] - How big is iFood today?
[7:02] - Where are you from originally?
[9:24] - The shift from corporations to entrepreneurship
[10:55] - Lessons learned from building a business
[13:00] - How did you make the leap to tech?
[14:53] - The Groupon Mafia in Brazil
[16:53] - The state of food delivery in Brazil in 2012
[19:24] - iFood’s acquisition spree
[22:21] - How to integrate new companies into the culture
[24:10] - The iFood inflection point
[26:30] - How did you decide to expand outside of Brazil?
[28:00] - The competitive delivery market
[29:00] - Cultural differences between the countries where iFood works
[31:02] - Are your delivery-people employees?
[32:40] - Next big challenge for iFood
[34:27] - Carlos’ advice to his younger self
Resources Mentioned:
- Dream Big (Book)
- Movile
- iFood
- Groupalia
- Peixe Urbano
- Just Eat
- Fabricio Bloisi, Movile CEO & Cofounder
- Naspers
Horacio Melo and I have been trying to organize a time to do this podcast for a few years and I'm excited to finally be able to share it. Once the Executive Director of Start-Up Chile, Horacio went on to build his own startup - just two months after becoming a Dad for the first time. Horacio knows what it takes to build a great company; after all, he watched and mentored over 1000 startups as they passed through Start-Up Chile. His solar energy company, Solarity, has raised three rounds of investment, starting with US$650K in their seed round, then adding a US$8M Series A and another $10M recently.
Horacio can speak to the difficulty of selling an innovative business idea to conservative corporates in Chile and Latin America, despite Chile being one of the best places in the world for solar energy. He also discusses his transition from corporate jobs to entrepreneurship, the importance of culture in building a sustainable startup, and what he learned as Executive Director of Start-Up Chile.
Horacio’s entrepreneurial roots started at age 12 Not every entrepreneur knows that they wanted to be an entrepreneur, but Horacio deliberately searched for opportunities to build his own business at a young age. Despite spending the first seven years of his career in corporate settings, he always found ways to innovate. In his own words, he preferred to use other people’s money to make mistakes before launching his own startup.
Horacio learned lean startup methodology during his corporate career before he became the director of Start-Up Chile. Check out the rest of this episode to find out how Horacio learned to build a company long before he founded Solarity.
The challenge of Chilean conservatism in large corporations Chile is still a conservative society, despite having a reputation for being innovative. Many employees prefer to not take a risk than to speak up about a new idea and risk their reputations. Horacio had to face this reality when trying to sell Solarity’s unique solar power model to Chile’s largest corporations. Despite having one of Chile’s biggest, most-conservative organizations among his first clients, Horacio still struggles to create a more agile sales process for the company.
Solarity’s sales challenges have nothing to do with the quality of the product. Chilean corporate culture strongly curbs risk-taking behavior, meaning no one wants to stick their neck out for a new idea. Find out why Horacio thinks this pattern is just starting to change, and what that means for Chilean startups, in this episode of Crossing Borders.
Why Chilean VC still lags behind the US The Cornershop acquisition sparked a controversial discussion about why the delivery startup had no Chilean investment. Yet Horacio’s experience with Chilean VC was different - for the better. He was able to raise US$650K from Chilean angels, and has had positive experiences with Chilean investors in his future rounds. The problem, according to Horacio (and I agree!), is the lack of exits in Chile to date. Exits lead to entrepreneurs who turn around to invest in the ecosystem, with founder-friendly deals and experience that leads to better investment outcomes.
Despite having worked for Start-Up Chile, Horacio shares similar frustration with CORFO as I do. Find out why Horacio thinks Chilean investors need to be made “uncomfortable” so they can have a more significant impact on the ecosystem by listening to this episode.
Horacio Melo has played a significant role in building up Chile’s entrepreneurial ecosystem through his tenure at Start-Up Chile, his success in raising funding for his startup and building a business around it. Check out his podcast to hear why corporates need to take more risk, why startups should pay attention to culture, and where Chile’s ecosystem is going next.
Show Notes:
[1:29] - Nathan introduces Horacio
[2:28] - Why is Chile an interesting place for a solar energy company?
[3:54] - The first step after starting the business
[5:11] - Did you always know you wanted to be an entrepreneur?
[7:26] - The start of Horacio’s corporate career
[9:06] - Does working abroad help you start a business?
[11:07] - The decision to shift over to Start-Up Chile
[13:00] - Becoming the director of Start-Up Chile
[14:09] - What did you learn from evaluating so many startups?
[15:35] - Best and worst traits for an entrepreneur
[17:00] - Starting Solarity the day after leaving SUP Chile
[21:54] - Horacio’s craziest rejection story
[24:40] - Did the SODIMAC deal help with sales?
[28:53] - Cost of installation in Chile vs. US
[30:57] - Experience raising 650k with Chilean angels
[40:09] - How did you give returns to your angels through your Series A?
[42:32] - What’s next for Solarity?
[45:30] - Plans to expand out of Chile?
[48:02] - How Horacio builds culture at Solarity
[50:13] - Why culture is important
[51:49] - Horacio’s advice for himself before becoming an entrepreneur
Resources Mentioned:
- Nicolas Shea on Crossing Borders
- Zero to One by Peter Thiel
- Let My People Go Surfing by Yvon Chouinard
- Un Puente para Dos Miradas by Francisco Varela and Jeremy Hayward
- Solarity
- Start-Up Chile
- Rocio Fonseca - Ex Startup Chile Director
- Sebastian Vidal - Ex Startup Chile Director, now Parallel 18
The Mexican venture capital and startup ecosystem is changing fast. And ALLVP’s Federico Antoni has been there helping it grow since 2012 when he and his partner Fernando Lelo de Larrea started their first fund. The once-CEO of a Mexican fashion company started investing after he failed to reinvent an aging consumer brand. The transition from a corporate position to the world of entrepreneurship might not be obvious, but Federico leveraged his experience teaching at universities to help him raise not one, but three venture capital funds that have gone on to support not only Mexican but also Latin America startups.
I sat down with Federico on this episode of Crossing Borders to discuss how he raised US$6M in 2012, before startups were popular, lessons learned while raising his second and third funds, the Cornershop acquisition for $225M by Walmart, in which ALLVP was an early investor, CORFO’s effect on the Chilean VC ecosystem, and China’s impact on the Latin American ecosystem. Check out this episode to hear Federico’s journey from the corporate world to becoming a prominent player in Latin America’s startup ecosystem.
Failure can be an opportunity for reinvention We often talk about how teams that have failed go on to build better startups. Many VCs like to invest in second or third time entrepreneurs because they have the grit to face the difficulty of being a founder. Federico wasn’t didn’t start as an entrepreneur, but still believes that a failure put him on his current path. After six years as CEO of an ageing company, he could not turn it around, and it closed down.
Federico used this failure as a learning experience, like any good entrepreneur would. Find out how Federico made the transition to the entrepreneurial ecosystem in this episode of Crossing Borders.
The Cornershop Effect It only takes a few big successes to gain credibility in the local ecosystem. For ALLVP, the clear winner of their portfolio so far is Cornershop, the Mexican-Chilean delivery service that was recently acquired by Walmart. It took Federico and his partner, Fernando Lelo de Larrea, seventeen investments to find Cornershop. There is a lot of learning involved in betting on companies, especially in the Latin American ecosystem.
When ALLVP started in 2012, family offices weren’t so keen on giving up money for unknown, risky companies. The Cornershop Effect, as we call it, has shown investors and entrepreneurs that they can build businesses that can exit and earn good returns. Potential LPs who originally rejected VC pitches are now reaching out to firms to learn about investment opportunities. Listen the rest of the episode to hear about the other companies ALLVP is backing right now.
China is taking the LatAm ecosystem seriously The US has taken Latin America for granted for too long, says Federico. Now, with China looking at Latin America as a serious investment opportunity and a growing market for tech, the US should be gearing up for a competition. Didi Chuxing is already in Mexico, fighting Uber for market share. As Chinese companies enter Latin America, hire talent, and innovate, US investors and startups will need to work harder to keep a toehold.
Federico has a suggestion for US VCs who are interested in Latin America: visit Mexico City, or Santiago, or Bogota. Listen to the rest of Federico’s tips about doing business in Mexico and Latin America on this episode.
Mexican-born investor Federico Antoni has followed an unconventional path to the startup ecosystem. Yet as an investor in one of Latin America’s biggest exits and success stories, he has turned ALLVP into a prominent player in the local market. Find out what he thinks of the exit, VC in Latin America, and what’s next for the region on this episode of Crossing Borders.
Show Notes:
[1:22] - Nathan introduces Federico Antoni
[1:45] - What does ALLVP do?
[3:43] - How many companies have you invested in?
[6:43] - What did you do before VC?
[9:12] - What made you take the leap to start a fund?
[12:50] - Lessons learned from teaching
[15:25] - How did you raise your first fund?
[18:12] - How has the market changed from 2012 to today?
[21:31] - Learning how to invest through VC
[24:27] - The market should help entrepreneurs fail faster
[25:57] - The Chilean VC ecosystem debate (Cornershop effect)
[31:55] - China in Mexico
[35:00] - Why should US investors look at LatAm?
[41:21] - Federico Antoni’s advice for his younger self
Resources Mentioned:
- ALLVP
- Cornershop
- Social Diabetes
- Alkanza
- Rocket Man by Robert Kurson (Book)
- The Art of Stillness by Pico Iyer (Book)
- Abstract: The Art of Design (Documentary)
- New York Times Op-Ed on Teaching
Most people skip over Bolivia when talking about Latin America’s startup ecosystem. The landlocked 11-million person country has yet to develop a thriving homegrown tech scene, but it shows tremendous potential for growth. It often just takes one or two success stories to catalyze the whole industry. Carlos Jordan, founder of UltraCasas and UltraCreditos, might be just the entrepreneur Bolivia needs. After raising the biggest round in Bolivian history from international investors, Carlos became one of the most influential actors in Bolivia’s nascent tech ecosystem. He takes this responsibility seriously, reserving a fierce optimism for Bolivia’s development potential.
I sat down with Carlos on this episode of Crossing Borders to discuss Bolivia’s nascent entrepreneurial ecosystem, Carlos’ role in building the industry, the inflection point for his business, UltraCasas, and what it was like to raise funding from abroad. We also talk about doing business in Bolivia and the future of its tech ecosystem. Carlos is the first Bolivian entrepreneur to join me on Crossing Borders, so check out this episode to learn more about one of Latin America’s youngest tech economies.
Why can’t I find an apartment online in Bolivia? When Carlos first looked for an apartment in Bolivia in 2015, he had to use the newspaper classifieds. After ten unsuccessful visits, he realized there was a need for a better solution. Everyone else in the world was looking for apartments online at this point, so why couldn’t Bolivians? Born in Bolivia and educated as an engineer in the US, Carlos seemed like just the person for the job.
However, it took him more than a year of puzzling before UltraCasas was born. “We thought we knew a lot, when in reality we didn’t know anything,” says Carlos. Find out how Carlos got international mentorship that helped UltraCasas reach its inflection point.
From Bolivia to the world When Carlos tried to raise funding for UltraCasas in Bolivia, he was met with blank stares. A year later, he was in Switzerland with Seedstars, raising the biggest round in Bolivian history. Carlos has since grown UltraCasas from 50 views a month to over 23,000 weekly views and 60,000 monthly leads; he feels ready to tackle the regional market, even against huge competitors in Brazil and Chile.
He hasn’t stuck to a single product, either. Carlos is developing a technology to help new apartment and homeowners get mortgages; stay tuned for the launch of UltraCreditos in November. Find out how Carlos tapped into his network in the US, Europe, and Latin America to create a regional growth strategy for one of Bolivia’s first successful startups.
The best ten years in Bolivian history Bolivia is growing incredibly quickly, although it is still lags behind the rest of Latin America, especially in tech. Part of the challenge of doing business in Bolivia lies in its complex geography; businesses must provide solutions for people living everywhere from the humid Amazon rainforest to the freezing Andean high plateaus. However, Carlos is confident Bolivia will surge forward. Why? An extremely young, talented, and entrepreneurial population that is increasingly joining the middle class.
Despite Bolivia’s rapid growth, Carlos still feels that the ecosystem is missing several pieces that are preventing its development. Check out the rest of this episode to find out what Carlos thinks Bolivia needs to move forward in tech.
Bolivia is one of Latin America’s youngest tech ecosystems. While its young, talented population bodes well for Bolivia’s development, the local economy is still missing a lot of pieces that are holding it back from a tech revolution. UltraCasas and UltraCreditos are some of the first examples of homegrown tech that provide solutions for the Bolivian economy. Carlos recognizes the significance of his success for Bolivia’s growth; the country needs more success stories before it can surge.
Show Notes:
[1:30] - Nathan introduces Carlos Jordan
[2:34] - Doing business in Bolivia
[4:17] - The diversity of Bolivia’s landscapes
[6:45] - How Bolivia’s young population affects tech adoption
[7:55] - Did you always want to be an entrepreneur?
[11:35] - How did you decide it was time to strike out on your own?
[12:45] - What did family and friends think?
[14:00] - Bolivia’s entrepreneurial ecosystem in 2015
[18:38] - What is Seedstars?
[20:05] - What did you learn from mentors and Seedstars?
[21:42] - What can people do to build the Bolivian ecosystem?
[23:16] - Where did you raise funding?
[27:13] - Launching UltraCreditos
[30:32] - What is Bolivia’s mortgage market?
[32:15] - The evolution of the Bolivian real estate market
[35:55] - Carlos’ advice for his younger self
[37:00] - What’s next for UltraCasas?
Resources Mentioned:
- Seedstars World
- TechCrunch
- Wall Street Journal
- Emprendedores Bolivia
- UltraCasas Blog
- El Comercio - Peruvian Newspaper
If you don’t believe entrepreneurship is a grueling job, just ask Ignacio Guglielmetti. Ignacio says he has never worked harder than he does for his startup Cuida Mi Mascota, and he used to be a management consultant - one of the most demanding jobs out there. His path from consulting to building a pet-sitting startup was far from clear; it took him to the Netherlands, USA, Mexico, Argentina, Puerto Rico, and Brazil. One might say that Ignacio knows a thing or two about doing business across borders.
In this episode of Crossing Borders, I invited Ignacio to discuss his two startups, how he studied in Buenos Aires and Rotterdam, what it was like to merge with a competitor in Latin America, having a startup acquired, the difference between all the accelerators Ignacio has participated in (three, in three different countries!), and how Ignacio became an angel investor. Check out this episode to learn about doing business across Latin America’s biggest economies, including how to do business in Brazil as a Spanish-speaking entrepreneur.
Running to the bathroom to answer startup emails It’s a story that many of entrepreneurs will relate to. Ignacio’s first bit of advice to himself for when he started his first startup: quit your job earlier. When Ignacio was working on SinImanes, a food delivery startup in Argentina that was later acquired, he waited six months to quit his management consulting job, running to the bathroom during meetings to answer urgent emails.
Trying to do both things at once was just too complicated. After quitting his job, Ignacio was able to take SinImanes to Mexico via a merger. Find out how Ignacio raised US$500K at his first startup and how that led to his founding Cuida Mi Mascota in Mexico, after growing up in Argentina.
In acquisitions and mergers, know your strengths Ignacio has gone through both processes, and he knows how complicated those negotiations can get. If you have good traction, look for a partner who has access to a strong network or a bigger addressable market. If your competitor gets acquired, be on the lookout for interest from their acquirer. But you don’t have to accept the first acquisition offer you receive; shop around a bit, get competing offers, then decide.
Ignacio has been on all sides of the acquisition and merger process and knows what it takes to find the right partner to help you enter a market. Listen to this episode of Crossing Borders to hear how to deal with acquisitions and mergers when crossing borders in the Latin American market.
How to choose where to raise capital Ignacio has received investment and acceleration from institutions in the US, Mexico, Argentina, and Chile, so he has a broad perspective on what entrepreneurs should expect. If you are working with US VCs, for example, expect a quick response; whether it’s a yes or a no, you will know almost right away. On the Latin American side, your network might lead you to the right VC, but they will take their time in due diligence.
After gaining experience as an angel investor, Ignacio has a final tip: bring on an investor with experience in your industry. He doesn’t invest in any companies where he wouldn’t be able to provide industry advice because he knows the value of mentorship from an experienced investor. Check out the rest of this episode of Crossing Borders to hear about how Ignacio got started as an angel investor.
Ignacio Guglielmetti exemplifies an entrepreneur doing business across borders in Latin America. Now based in Sao Paulo, Ignacio is growing Cuida Mi Mascota, especially as pet sitting has become a very hot market globally. Listen to this episode to hear Ignacio tell the story of how he took his two startups across Latin America, even as the Argentine economy was failing.
Shownotes:
[1:36] - Nathan introduces Ignacio
[2:05] - What does CuidaMiMascota do?
[2:40] - How did you start doing business across borders?
[5:40] - Why Holland?
[6:40] - Ignacio gets his start in management consulting
[8:06] - How long did it take for you to realize the food delivery business would be successful?
[9:48] - What was it like to raise money in 2011-2013?
[12:15] - Start-Up Chile
[13:11] - Compare the pros and cons of LatAm accelerators and US accelerators
[15:40] - Could you describe the acquisition process?
[17:54] - What advice do you have for people to stay in touch with potential acquirers in the ecosystem?
[19:30] - Family and friends’ reaction
[21:28] - What was it like to merge with a Mexican company?
[24:50] - How did you start your next business after the merge?
[27:55] - How to start a marketplace in Latin America
[31:00] - How Ignacio grew CuidaMiMascota by hand
[32:31] - How did you get to 20 cities?
[33:47] - Cuida Mi Mascota raises 3 funding rounds
[35:00] - Advice for other founders about raising money in USA and LatAm
[38:30] - What was it like to acquire to enter the Brazilian market?
[39:50] - what is it like to do business in sao paulo?
[41:10] - Why did you decide to start angel investing?
[44:05] - What’s next for Cuida Mi Mascota?
[47:02] - Advice for his younger self
[48:03] - Where is the LatAm ecosystem going in the next 2-5 years?
Resources Mentioned:
- Mark Suster’s blog, Both Sides of the Table
- The Lean Startup - Eric Ries [BOOK]
- Zero to One - Peter Thiel [BOOK]
- TechCrunch
- 500 Startups and 500 Startups LatAm
- Start-Up Chile
- HoyPido
- PetAnjo - Cuida Mi Mascota in Brazil
- Ignacio’s cofounders:
-
- Olga Zambrano
- Roxana Zambrano
- Guillermo Schwindt
