You can now find the full show notes of the Crossing Borders podcast on LatamList.com’s new podcast section. I’ll still post the audio of the podcast on my blog and I’m planning to start writing more again on my blog, like I used to.
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Thanks for listening to Crossing Borders all these years! If you have any feedback or questions, please feel free to reach out here, or contact me on social media.
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?
Shownotes on Latamlist.com
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.
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 Chile’s conservatism. That’s also a part of it. Others have blamed CORFO, the Chilean government agency that supports new businesses and venture capital. Others blamed Chilean VCs for missing the boat. They also deserve some blame, although a Chilean fund did invest $500k into the Cornershop founders’ previous startup Seahorse, and multiple Chilean angel investors invested in Cornershop.
I got multiple requests for my perspective from entrepreneurs, investors and family offices from around the region. What happened? They also asked why have Magma Partners been the only VC fund in Chile that hasn’t taken CORFO money? And why we haven’t taken any government money from anywhere, whether its the US, China or Latin America.
I love CORFO. CORFO created and supported Start-Up Chile, the world-changing program that brought me to Chile back in 2010. It indirectly showed me the opportunity to create Magma Partners in Latin America.
I also love CORFO because it’s made up of well-meaning, smart, dedicated people who are doing their best to change Chile for the better. Thanks to everyone involved. You’ve truly changed my life.
I also love CORFO because CORFO backed funds are blocked from investing in many of the best deals in Latin America. Since 2014, Magma Partners has invested in 42 startups across Latin America. And we found that CORFO blocks much of Magma’s Chilean from at least 40 of our best investments.
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 know whether you are getting a straight deal when the process for researching properties and brokers is anything but transparent.
Even in countries such as Chile, which is one of the more developed real estate markets in the region, renting an apartment as a foreigner can be daunting. Local landlords usually require significant paperwork before signing a lease, including a cosigner, local employment documents, proof of local taxes, and other documents most foreigners do not have. Landlords may also require your monthly income to be triple or quadruple the monthly rent, meaning that renting many properties is out of reach even for well-paid locals.
In 2013, Vijay Kailas, a fellow Start-Up Chile entrepreneur and I started Andes Property to help foreigners buy, rent or invest in properties in Latin America to help provide more clarity into this market. In 2014, my fund, Magma Partners, made Adrian Fisher’s PropiedadFacil our first investment. Adrian has been involved in the real estate tech sector since 2012 in Argentina, Chile and now the US with PropertySimple, so we had significant experience in the real estate tech sector.
Because of a lack of information, low levels of competition in the Latin American real estate market and corruption in certain markets, potential property owners can take on risks when buying a property that they wouldn’t otherwise take on in the US, where we take many of our existing systems and platforms for granted.