Category: Latin America Startups and Investing

Why Magma Partners Loves Corfo But Doesn’t Take Its Money

Walmart’s acquisition of Cornershop for $225M set off a firestorm in Chile. Everyone from politicians to investors, columnists to entrepreneurs has thrown in their two cents. Why didn’t any Chilean VCs invest, when 2 of the founders were Chilean? The debate got hotter when Oskar and Dani, two of Cornershop’s founders, shared their perspectives on Twitter and in interviews, and a prominent reporter used the acquisition to bash wealthy Chileans. Some have turned Cornershop into a referendum on wealthy Chilean businesspeople. I’ve written about the Chilean extraction vs. value creation mentality. That’s a part of it. Others have seized on […]

How Latin America is Using Technology to Reform the Tax-Paying Process

As the calendar turns toward April 15th, everyone in the US knows what’s coming: tax day. While the Internal Revenue Service (IRS) has updated their systems, and there are dozens of tax management tech products, many people still have to file via a paper 1040 form that takes 6-8 weeks to process. Compare that to Chile,  a less “developed” country according the most of the world, where paying taxes is as simple as logging on to the Servicios de Impuestos Internos (SII, Chilean IRS) website to see all your paychecks and spending from the year. On Chilean tax day, people can […]

Real Estate Tech Opportunities in Latin America

Even in the United States, the process of finding and buying property, as well as securing a mortgage, is not an easy one. In Latin America, where real estate agents are often not officially licensed, countries use notaries instead of escrows, and mortgage rates can be staggeringly high, buying a property in Latin America can be much more difficult. Most Latin American countries lack an MLS (multiple listing service) so there is no central place to search for properties, no exclusivity for brokers, and prices for the same property can differ from broker to broker. It can be hard to […]

3 Ways China is Fueling Latin American Startups

In January 2018 Magma Partners teamed up with Chinese coworking business, Kr Space, to launch the first China-Latin American accelerator to connect Chinese and Latin American entrepreneurs and investors. With the recent news that Tencent invested $180M into Brazilian neobank Nubank at a $4B valuation, we’e seeing Chinese interest and investment in Latin America move beyond the common infrastructure projects backed by the Chinese government. The Chinese private sector is taking note of Latin America’s growing tech ecosystems and is capitalizing on opportunities to help the region follow a similar development path to China’s. As the US pulls further away from Latin America, […]