The Internet of Things (IoT) is a buzzword that many people throw around but not everyone understands. While it sounds obscure, the concept is simple; IoT is communication between physical objects that connect via the Internet.
These products are implanted using sensors, monitors, and other devices that allow them to communicate with other connected devices. For example, if a machine in a factory could automatically send an alert to the supervisor’s smartphone when a gear is starting to wear down, that communication would happen through IoT.
It’s easy to imagine hundreds of applications of IoT technology that could simplify or solve everyday challenges. In Latin America, where millions of people still struggle with safety (especially in big cities), access to clean water, or adequate healthcare, the Internet of Things has the potential to provide innovative solutions to these problems.
The field is still in its infancy in Latin America. Since IoT has applications across almost every industry, efforts to join forces or create collaborative solutions have been few and far between. However, the newness of this industry, as well as the rapidly-increasing connectedness of the Latin American population, opens many opportunities for IoT solutions to take hold in the region over the next decade.
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.
Credit in Latin America is notoriously hard to access. Just a few years ago, credit card rates in Brazil hit 450%, which has gone down to a still astounding 250% per year. In Chile, I’ve seen credit cards that charge 60-100% yearly interest. And that’s if you can even get a card in the first place. Yet people still use these predatory systems. Why? There are rarely any other options.
In the US, access to loans depends mainly on a single number: your FICO score. Your credit score is an aggregate of your spending and borrowing history, so it gives lenders a way to find out if you are a trustworthy customer. In general, the higher your score, the bigger (or more lenient) your line of credit. You can boost your score by managing credit wisely for long periods, such as always paying off a credit card on time, or lower your score by taking on more credit, not paying it off on time or carrying a high balance. While many people criticize the FICO score model, it is a relatively simple way for lenders to verify the creditworthiness of potential customers.
Consumers in the US have access to deep pools of capital at their fingertips. Home loans, credit cards, consumer credit and other forms of debt are readily available. Perhaps they are even too available, as we saw in the 2008 financial crisis or as we might be seeing now with bubbles in student loan debt.
Today we announced Magma Media, our next step forward to continue to support Magma portfolio companies and hopefully the ecosystem at large.
We were inspired by the Andreessen Horowitz model of providing top class services to portfolio companies. We’re starting with media because these strategies do work and are low risk/high reward for startups. Even an extremely lean, revenue focused business will benefit from basic content marketing and a social media strategy. Rightly or wrongly, first impressions make a difference.
We currently offer:
- Growth strategies: landing pages, analytics, ads
- Content marketing in English, Spanish, Portuguese and Chinese
- PR in English, Spanish, Portuguese and Chinese
- Podcast production
- Video production
- Social Media management