I recently wrote a column in TechCrunch called A new era in Latin American startup investing where I talked about how things have changed since I first moved to Chile in 2010 as part of the pilot round of Startup Chile.
Some of the pioneering investors and entrepreneurs have started to be successful, paving the way for the next generation of startups. Other founders who tried and failed in the early 2010s have learned their lessons and are starting second rounds of companies. The ecosystem is much more developed, including startup specific attorneys and more experienced venture investors. From the link:
Startups in Latin America are using creative solutions to address not just local but also global problems. For investors outside the region, the prospect of working with these startups can appear attractive, yet complicated. Investing in early-stage startups in Latin America can present challenges; however, despite the challenges, time and time again I’ve found it can be well worth the effort.
When I first came to Santiago, Chile in 2010 as part of the pilot round of Start-Up Chile, there was hardly any talk of startups. Most people didn’t even know what startups were. Within nine months of returning to the U.S., the company I co-founded was acquired. So I decided to go back to Chile to look for more opportunities in this emerging market.
Over the next couple of years, I taught entrepreneurship in Chile, mentored local entrepreneurs and eventually started investing in Latin American companies myself. I’ve now invested in more than 30 early-stage companies in Latin America, and I firmly believe the time to help early-stage startups in Latin America has never been better. Here’s why.
Continue reading A New Era for Startup Investing In Latin America on TechCrunch.
Photo credit: Alessandro Pautasso
I’m excited to announce that Portal Finance is the winner of our FinTech competition and is now part of the Magma Partners portfolio. Portal Finance stood out from of the multitude of companies that applied from all over Latin America because of founders Diego Caicedo, Felipe Puntarelli and Nicholas Bohorquez’s deep experience in the market and the ability to translate it into a top notch product with clients in multiple countries that can expand worldwide. (more…)
Michele Bachelet, Chile’s President, announced the Chilean Tech Visa today which allows founders and tech workers an express lane to a visa in 15 days.
While countries like the US are making it harder for the best foreign entrepreneurs and tech workers to start their businesses or work for top companies, Chile has blazed a radically different path, making it easier and more attractive for foreigners to start a business or work for a high tech company in Chile. (more…)
Note: A version of this post appeared as a column in Spanish in Chile’s El Mercurio with the title Emprendedores chilenos: Pierdan el miedo a EE.UU. Although this post focuses on Chilean entrepreneurs, it can also apply to other Latin American entrepreneurs. From what I’ve seen, Mexican entrepreneurs are the least scared of the US market, followed by Argentinians, Colombians, then Chileans, who generally think they don’t have much of a shot at competing in the US. This mindset is slowly changing and this article’s goal is to push it along faster.
A few weeks ago, COPEC, a Chilean convenience store and gasoline service station chain, acquired Delek, a US convenience store and gas station chain with 348 US locations for $535MM. COPEC has operations in Mexico, Colombia, Peru, Ecuador and Panama, but this is their first foray into the US market. It’s an important step for Chile because it shows that both big companies and startups alike shouldn’t be scared of the US market. In fact, they should view the US market as a big opportunity to expand outside of their home markets.
For way too long, when Chilean companies large and small have wanted to expand out of Chile, they’d look at Peru, Colombia and maybe Mexico. But we’re recently seeing a big change, both by startups and by big companies like COPEC.