Daniel Rodriguez, Picap: Delivery and Logistics in Latin Americans, Ep 136

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Brynne McNulty Rojas: Leading Colombia’s Real Estate Industry into the Future, Ep 135

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Rodrigo Sánchez-Ríos, La Haus: Helping Latin Americans Find their Ideal Homes, Ep 134

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Brian Requarth, Viva the Entrepreneur: Founding, Scaling and Raising Venture Capital in Latin America, Ep 133

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Alejandro Freund: The path to shutting down a Latin American Startup, Ep 132

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Juliana Sarmiento, Envíoclick: Reimagining the logistics industry in Latin America, Ep 131

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James Currier, NFX: Transforming How Innovators are Funded, Ep 130

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Álvaro Silberstein, Wheel the World: Creating Accessible Travel Experiences, Ep 129

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Javier García, Femsa: Collaborating with the most disruptive startups in Latin America, Ep 128

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Manuel Olguín, Keynua: E-signatures for the Latin American market, Ep 127

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Amir Salihefendic, Doist: Best Practices for the Remote Work Revolution, Ep 126

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Andrea Baba, FitCo: Digitizing Fitness Centers in Latin America, Ep 125

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Mariana Castillo, Ben & Frank: Direct-to-Consumer Eyewear for the Mexican Market, Ep 124

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Claire Díaz-Ortiz, Magma Partners: Investing in Latin American Female Founders, Ep 123

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Dan Green, Gunderson Dettmer: Legal Structures for Startups in Latin America, Ep 122

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Mandeep Rai, The Values Compass: What 101 Countries Teach Us About Purpose, Life, and Leadership, Ep 121

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Santiago Pineda, Mensajeros Urbanos: Transforming Latin America’s Last-Mile Delivery Industry, Ep 120

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Matías Muchnick, NotCo: Building The Future of Food From Chile, Ep 119

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Gustavo Guida, Alloy Card: Starting Companies in Brazil since 2000, Ep 118

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Christine Kenna, IGNIA: Building the Foundation of Mexico’s Venture Capital Industry, Ep 117

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Deepak Chhugani, Nuvocargo: Using software to modernize trade between Mexico and USA, Ep 116

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Martin Schrimpff, Zinobe: Supporting Underserved SMEs with Fintech, Ep 115

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Florence Frech, Leal: Bringing Data-Driven Customer Engagement to Latin America, Ep 114

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Gonzalo Galindo, Cemex Ventures: Bringing Innovation and Strategic Investments to the Construction Industry, Ep 113

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Pedro Góes, InEvent: Revamping the Events Industry in Latam & the US, Ep 112

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Antonia Rojas, ALLVP: Investing in Latin America's Human Capital & Smart Cities, Ep 111

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Albert Santalo, 8base: Building the Software of the Future, Ep 110

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Ángel Sahagún, Albo: Bringing Financial Inclusion to Mexico’s Underbanked , Ep 109

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Laura Mendoza, Unima: Developing Low-Cost Diagnostics for 3 Billion People, Ep 108

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Maya Dadoo, Worky: Revolutionizing the HR Industry for Mexican SMEs, Ep 107

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Vitor Torres, Contabilizei: Helping Brazilian SMEs with Tax Compliance, Ep 106

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Geoff Michener, dataPlor: Closing the Latin American Data Gap with Human Verified SME Data, Ep 105

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Gabriela Estrada, Vexi: Bringing Credit to the Underbanked in Mexico, Ep 104

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Gonzalo Ucar, Hogaru: Empowering Colombia’s Cleaners to Earn Stable Wages, Ep 103

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Daniel Cossío, Village Capital: Transforming Big Ideas from Vision to Scale, Ep 102

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Ishan Sinha, Point72 Ventures: Investing Globally in Startups, Ep 101

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Advice from Venture Capitalists to Latin American Founders, Ep 100

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Advice from 11 Magma Entrepreneurs from 7 countries, Ep 99

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Simon Chamorro, Valiu: Revolutionizing the Venezuelan Remittance Economy, Ep 98

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Michael Sidgmore, Broadhaven Ventures: Investing in LatAm’s Fintech Ecosystem, Ep 95

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YCombinator in Latin America: Advice from 8 LatAm Founders on how to prepare for YC, Ep 96

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What it's Really Like to be a Female Founder and Investor in Latin America, Ep 95

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Andres Gutierrez, Tpaga: How Tappsi's acquisition led to Trying to Help Latin America's 400M Unbanked

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Pedro Sorrentino, ONEVC: Investing in Inevitable People , Ep 93

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Migue Morkin, Sirena: The SaaS that Connects Businesses and Clients via WhatsApp, Ep 92

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Mariana Costa, Laboratoria: Transforming Latin America’s Tech Sector with Female Talent, Ep 91

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Victor Santos, Liv Up: A Healthy Approach to Food Delivery in Brazil, Ep 90

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Luis Garza, Kinedu: Helping Parents and Kids Through the Magic of Software, Ep 89

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Ariel Arrieta, NXTP: Funding Latin American Startups from Argentina, Ep 88

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Julian Deutschle, Recorrido: Optimizing Latin America’s Bus Industry, Ep 87

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Susana García Robles, IDB Lab: Supporting Venture Capital and Women Entrepreneurs in Latin America, Ep 86

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Joao de Paula, Glio: YCombinator’s First Latin American Startup Ep 85

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Andres Sarrazola, Ayenda: Modernizing Latin America's Hotel Industry, Ep 84

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

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Andy Kieffer, AgaveLab: Cultivating Guadalajaran Talent to Solve Mexican Problems with Tech, Ep 83

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Nathan Lustig on Mixergy: A VC's Inside Look at Latin America, Ep 82

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Cory Siskind, Base Operations: Using Technology to Secure Global Workforces, Ep 81

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

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Daniel Bilbao, Truora: Fighting Fraud in Latin America, Ep 80

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Johanna Posada, Elevar Equity: Driving Impact in Latin America via Venture Capital, Ep 79

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Mike Packer, QED Investors: The Trailblazing US VC Investing in Latin American Fintech, Ep 78

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Juan Pablo Cappello, Pag.law: Legal Services for Latin America’s Entrepreneurs, Ep 77

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Maricel Saenz, NextBiotics: Defeating the Next Superbug, Ep 76

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Vera Makarov, Apli: Reinventing Recruiting in Mexico, Ep 75

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Marta Forero, UBits: Driving Economic Growth in Latin America via Corporate Education, Ep 74

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Matias Rivera, Fanatiz: Building Businesses and Replanting Patagonian Trees, Ep 73

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Alejandra Tenorio, La Manicurista: Using Tech to Improve Latin America’s Beauty Industry, Ep 72

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Sofía Yagüe, Next Legal: A Lawyer's View on the Latin American Startup Ecosystem, Ep 71

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)

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Eugenio Perea: Building Mexico’s Startup Ecosystem, Ep 70

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Jackie Hyland: How Debt Tools Can Help Latin American Entrepreneurs, Ep 69

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Emmanuel Oquendo: How Brainhi Rebounded from Hurricane Maria to Become Puerto Rico’s First YCombinator Company, Ep 68

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Brian York, Liftit: How Entrepreneurship Paved a Path Back to Colombia, Ep 67

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Federico Casas: Helping Build Mexico’s Startup Ecosystem, Ep 66

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Daniel Undurraga: The Story Behind the Cornershop Acquisition, Ep 65

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How To Raise Venture Capital From Magma Partners, Ep 64

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Komal Dadlani, Lab4U: Turning Smartphones in Science Labs, Ep 63

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Jean Boudeguer. Clay: Start-Up Chile, Cumplo, and Accounting in Latin America, Ep 62

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Carlos Moyses: How iFood Delivers 11M Monthly Orders & Is Just Getting Started Ep 61

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Horacio Melo, Solarity: From Start-Up Chile to Solar Energy, Ep 60

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Federico Antoni, ALLVP: Investing in the Mexican Startup Ecosystem, Ep 59

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Carlos Jordan: Starting Ultracasas, The Zillow of Bolivia, Ep 58

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

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Ignacio Guglielmetti, Cuida Mi Mascota Airbnb for Pets in Latin America, Ep #57

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Ep 56 Emilia Diaz: Learning from Kaitek Labs' Post Mortem

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Ep 55 Pedro Pablo del Campo: Building Bridges Between Latin America & the USA

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Ep 54 Andres Moreno: Helping Latin America Learn English Through OpenEnglish

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Ep 53 Diego Caicedo: Streamlining Small Business Finance in Latin America with Portal Finance

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Ep 52 Christian Van der Henst: Helping Latin America Learn with Platzi

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Ep 51 Kyle Wiggins & Jack Fischl: Taking Tourists off the Beaten Path with Keteka

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Ep 50 Miguel Torres: Modernizing Last Mile Shipping in Latin America with Shippify

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Ep 49: A Case Study of Ecommerce Opportunities in Chile and Latin America

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Ep 48: How Mayer Mizrachi Launched Criptext From a Colombian Prison

Lessons Learned Overcoming A Childhood Illness 

Mayer was diagnosed with a rare illness that caused him to be on chemotherapy drugs from a very young age until he was 17. We talk about what it was like growing up in hospitals in a foreign country, what he learned and how this experience shaped him and how it might have helped prepare him for his Colombia prison stint.

Launching A Startup From Colombian Prison

Mayer was living in New York and decided to take a new years vacation with friends to Cartagena. When he got off the plane, he was arrested and presented with an Interpol Red Notice. We talk about how all of this happened, his time in a Colombian prison and why he thinks all of this happened. Panama claims he stole millions and bribed his way out of prison, Mayer says he had a $200k contract that he delivered, but a change in Presidential administration and some family connections led to political persecution.

Opportunities For Doing Business in Latin America

After such a difficult experience, maybe people would assume that Mayer wouldn't be interested in doing business in Latin America. But he's still bullish on opportunities and has made multiple angel investments in the region. We talk about some of the advantages and how it fits into the Magma Partners investment thesis.

Show Notes:

2:30 - What are you working in Panama?

4:15 - Do you think that there's a potential security cluster for tech in Panama?

6:23 - How did you get interest in Cyber Security?

10:30 - Growing up in Panama

11:23 - Mayer's childhood illness, getting better, living in London

13:23 - What would you say if anything that you learned or that you used or that changed your perspective that is still with you today based on that childhood?

15:20 - What did you do after your came out of the hospital?

17:19 - Where did you study?

19:30 - What did your family think about taking an entrepreneurship path?

21:40 - The start of Mayer's story about Colombia Prison

28:40 - Getting arrested in Colombia on an Interpol Red Notice

31:25 - Mayer tells stories about what it was like in a Colombian maximum security prison

37:45 - What is your favorite story from prison?

49:38 - What do you think happened that Panama and Colombia went after you?

54:26 - Why Mayer ended up back in Panama

58:06 - You are taking a risk by telling the story like this, aren't you?

1:00:08 - Issues and potential solutions for keeping your communication secure

1:02:51 - What's next for Mayer and Criptext

1:04:27 - How did you keep the team together while you were in prison?

1:09:14 - Do you have any advice for why people should  look at Latin America?

1:12:33 - Some advantages for operating and investing in Latin America

1:13:43 - Books Mayer recommends

1:17:55 - Advice Mayer would give to his younger self

Links:

Original Forbes Coverage

Forbes Follow up Coverage

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Ep 47 Paulo Duarte: Broterra, a Paraguayan Superfoods Company

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Ep 46 Pedro Neira: Innovating for the Latin American Dating Industry

Leading the acquisition of AdondeVivir.com

After his second startup failed, Pedro and his co-founders found themselves in an unusual situation; they had the team, but not the idea. Eventually, Pedro and his team created Peru’s largest real estate portal, AdondeVivir.com, and was a driving force in its acquisition by Navent, a Argentine classifieds site. Pedro started looking for his next project right after the acquisition, and eventually landed on the dating industry. Find out Pedro’s advice for entrepreneurs heading into a challenging negotiation in this episode.

How Mi Media Manzana targets Latin America

Mi Media Manzana wanted to be the eHarmony of Latin America, but that model does not transition well to mobile. In Latin America, where most people are accessing the Internet through smartphones, online dating had to be mobile-friendly. That’s why Mi Media Manzana resembles a social network, where singles looking for relationships can mingle freely online. Pedro was so confident in the Latin American dating industry that he invested much of his own money into the app before looking for investment. Listen to this episode to hear how Pedro pioneered the online dating industry in LatAm.

Pedro’s advice to LatAm founders raising capital abroad

Pedro has raised four rounds for Mi Media Manzana, from investors in Peru, South Korea, and the US. His advice to founders is to raise capital at home first, before looking abroad. US investors will pay attention to Latin American startups if the team, the traction, and the idea are there. However, he claims that raising capital in Latin America is the opposite of the US; check out the rest of the episode to find out why.

Pedro was active in Peru’s startup ecosystem before it even formally existed. Now he is building Mi Media Manzana into a regional business, targeting the largely untapped Latin American dating market and gaining the attention of international investors. Pedro is the first Peruvian entrepreneur to appear on Crossing Borders, so if you are interested in Peru’s startup ecosystem, you should definitely check out this episode.

Show Notes

[1:24] - Nathan introduces Pedro

[3:27] - How Mi Media Manzana works in Latin America

[7:50] - Did you always want to be an entrepreneur?

[10:15] - What did family and friends have to say?

[11:42] - The journey back to Peru

[13:47] - Building an Alibaba for Latin America and failing

[16:49] - Scouting ideas for the next startup

[20:07] - Raising VC funding from Latin America

[25:05] - Lessons learned from exponential growth

[27:53] - Making the decision to move on to Mi Media Manzana

[29:54] - Dating is an untouched market in Latin America

[30:30] - Raising funds for Mi Media Manzana

[32:05] - Raising money in Lima vs. Silicon Valley

[33:24] - Advice to LatAm entrepreneurs who are raising money

[35:00] - Why should US investors look at LatAm

[39:23] - How to pick the right accelerator program

[43:15] - What’s next for Mi Media Manzana?

[44:47] - Peru’s entrepreneurial ecosystem

[47:02] - What is missing from the ecosystem

[47:57] - Pedro’s advice to his younger self

[50:51] - Final advice to LatAm entrepreneurs

Resources

• The Lean Startup [BOOK]
• AdondeVivir.com
• BlackBox Accelerator
• Steve Blank
• Masters of Scale [podcast]
• Mi Media Manzana
• Cristobal Perdomo [Podcast]

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Ep 45 Antonio Nunes: Delivering Latin America’s Groceries with Mercadoni

People who want to start companies want to change the world

Antonio’s first entrepreneurial experience involved founding an NGO in Mozambique when he was 19-years-old. He was focused on making it possible for budding entrepreneurs from anywhere in the world to develop and test their ideas because he believes entrepreneurs are people who want to change the world they live in. This project marked the first step in Antonio’s career in international entrepreneurship that would take him from Asia to Latin America. Find out how Antonio started supporting global entrepreneurship in Lusophone Africa in this episode of Crossing Borders.

Scaling e-commerce businesses in Asia and Latin America

Antonio scaled a fashion e-commerce business in Singapore from a Starbucks office to a 500-person business in just nine months, knowing little about e-commerce and nothing about fashion. When Rocket Internet brought him to Bogota to build Linio, Antonio was prepared to built Latin America’s Amazon. Linio now operates in Chile, Colombia, Argentina, Mexico, Ecuador, Peru, and Venezuela. Check out to episode to learn how building Linio inspired Antonio to found Mercadoni.

Why last-mile delivery is a big opportunity in Latin America

Latin America is growing and changing much faster than the United States as it leapfrogs over legacy technologies, like landline phones, that hold the US and Europe back. Last-mile delivery has grown particularly fast, with Mercadoni’s competitors like Rappi and Cornershop receiving investment from the US this year. Antonio considers that the tight competition for Latin America’s last-mile delivery market validates this US$300B market opportunity. Antonio explains the unit economics of Latin American delivery services, and why these numbers are better than in the US, in this episode.

Delivering fresh fruit means Mercadoni is living its mission

Mercadoni seeks to replace grocery store runs for busy Latin Americans so they can focus on their families, jobs, and friends. Of the top ten items ordered through the app, eight are fresh products, including bananas, tomatoes, and meat. According to Antonio, this pattern means Mercadoni is serving its purpose; people are trusting others to choose even their produce, one of the hardest items to buy.

Antonio is a serial entrepreneur who has spent his whole career building businesses across borders, first in Mozambique, then Singapore, then in Colombia. His most recent venture, Mercadoni, is fighting for market share in one of Latin America’s most competitive industries, with support from Brazilian tech giant, Movile. Find out more about the opportunities in last-mile delivery and tech in Latin America in this episode of Crossing Borders.

Show Notes:

[1:48] - Nathan introduces Antonio

[3:08] - Why last-mile delivery in Latin America?

[6:30] - Antonio’s first time doing business across borders in Mozambique

[10:30] - Rocket Internet’s model of building a business

[12:08] - Why Antonio does business across borders

[17:10] - Surround yourself with people you love working with

[19:24] - How to get from Singapore to LatAm

[22:19] - The US$300B Latin American grocery industry

[24:45] - What it’s like to live and work in Colombia

[27:00] - Why does Latin America change so much faster than the US?

[30:48] - Trends Antonio sees for the Latin American middle class

[32:25] - The decision to leave Linion

[34:37] - Antonio’s approach to fundraising

[39:09] - What did you learn from fundraising from Colombia?

[40:36] - Selling his furniture to get Mercadoni off the ground

[44:37] - What people buy on Mercadoni

[48:00] - How unit economics affect Mercadoni’s success

[49:40] - Why Mercadoni’s competitors validate the market opportunity

[53:02] - Antonio’s advice to his younger self

Resources and People Mentioned:

• Freakonomics podcast
• Guns, Germs, and Steel [Book]
• 1491 [Book]
• 1493 [Book]
• Abstract [Documentary]
• Oliver Samwer
• Rocket Internet
• Linio
• Mercadoni
• Fabricio Bloisi Podcast, Movile CEO/Cofounder
• Rappi
• Cornershop
• Glovo

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Ep 44 Lauren Cascio: How Abartys Health is Upgrading the Insurance Industry

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Ep 43 Lisa Besserman: Startup Buenos Aires & Building Argentina’s Startup Community

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Ep 42 Pierpaolo Barbieri: How Uala is Increasing Financial Inclusion in Argentina

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Ep 41 Marcus Dantus: From Mexico.com to Startup Mexico

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Ep 40 Jie Hao: How China Sees Latin America Startups

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Ep 39 Kevin Valdez: From Guatemala to GroupRaise

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Ep 38 Nathan Lustig Startups and Venture Capital in Latin America

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Ep 37 Fabricio Bloisi, Movile Has a Plan To Make Life better For 1 Billion People

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Ep 36 Alba Rodriguez, Gricha: Using insects to solve food insecurity and improve nutrition

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Ep 35 Nestor de Haro: Building the Alibaba or MercadoLibre of Auto Parts in Mexico

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Ep 34 Cristobal Perdomo, Venture Capital in Latin America

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Ep 33 Nathan Lustig, Advice for Foreign Entrepreneurs Doing Business In Latin America

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Ep 32 Amir Salihefendic, Working Remotely is the Way of the Future

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Ep 31 Sean Park, How GroupRaise Became The Tastiest Way to Change the World

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Ep 30 Amanda Jacobson, Solving Problems in Education, Agriculture, and Fintech in Latin America

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Ep 29 Brenna Loury, Working Remotely Across Borders

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Ep 27 Juan Vera, Scaling Start-ups from Latin America To USA

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Ep 28 Neil Coleman, Creating an International Market Expansion Strategy.

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Ep 26 Mak Gutierrez, Supporting Makers and Startups In Guadalajara

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Ep #25 Insights and Lessons from Latin American Entrepreneurs - the Best Of Crossing Borders

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Ep 24 Jonathan Nelson, How the Serving Leader Empowers Startups and Changes Communities

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Ep 23 Marco de Mello, Building a Digital Security Company in Brazil that Serves The World

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Ep 22 Greg Mitchell, Funding Startup Business in Peru and Regionally in Latin America

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Ep 21 Rocio Fonseca, Empowering Female Entrepreneurs and Startups in Latin America

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Ep 20 Thomas Allier, The Startup Growth Curve of a Latin American Travel Search Company

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Ep 19 Andres Barreto, International Business Strategy That Cuts Cost and Increases Profit

Talent is everywhere but opportunity is not. What does it mean for US companies?

One of my favorite sound bytes from this conversation with Andres Barrito is the moment when he said, “Talent is everywhere but opportunity is not.” He was speaking to the fact that many Latin American software engineers are immensely talented, equal to their U.S. based counterparts but simply don’t have the opportunity to put their skills to use.

Andres believes that U.S. companies that are able to get over the cultural difference and search out team members in Latin America can not only cut costs but give worthy individuals the opportunity to improve their lives and their local economies. Andres is passionate about this topic so you’ll get a much better feel for how he views it by listening to him describe it on this episode.

Follow the advice to move to Silicon Valley to begin your startup and you’ll waste money.

Traditionally, Silicon Valley has been the place founders are advised to move in order to make a go at a tech startup. But is that the smartest decision? With the advances in technology that enable remote work and communication, being in the heart of Silicon Valley is no longer the only viable option.

Andres Barreto shares how he has seen many Latin American companies build a huge presence in the U.S. Market without making the shift to a Silicon Valley location. He also shares insights into the benefits those companies experience from staying in Latin America and the impact it has on the value they deliver to their customers.

When going up against a big competitor, build less and do it better.

Andres Barreto says that he’d much rather build an online marketplace to compete with Amazon than try to build a company that is attempting to be the “Amazon of Latin America.” In his mind, the key to success is to focus on building less and doing it better than the giant competitor. This not only enables the company to scale faster, it also sets it up for a very profitable acquisition down the line.

As a venture capitalist, if you think you’re doing a startup a favor, you shouldn’t invest in it.

Though we talked a lot about International business strategy, Andres Barreto is really a venture capitalist, running a very successful venture capital firm, First Rock Capital. His advice to those who want to invest in ventures is to keep their perspective clear. He says as a VC partner you need to find companies where you believe the founder will do a much better job than you ever could. That’s a team you can believe in and put your money behind.

If you ever find yourself getting excited about a potential venture because you think you’re going to be able to help them out with your money and your expertise, you should walk away from the deal - because if what you’re thinking is true - the company isn’t ready.

Outline of This Episode

• [0:03] Andres Baretto, Columbian entrepreneur turned venture capitalist.
• [2:12] The types of companies Andres’ fund is looking to invest in.
• [4:15] Why it’s advantageous for US companies to use Latin American engineers.
• [9:09] Andres’ 3-part test for startups.
• [11:00] What Andres says to Latin American entrepreneurs who are intimidated by entering the US Market.
• [14:12] How Andres moved to the US initially.
• [19:50] The ignorant notions US companies must overcome.
• [31:34] Why Latin American VCs are missing Latin American market deals.
• [43:37] Andres’ advice to entrepreneurs in Latin America considering US Markets.
• [48:33] The top mistakes startup founders make when pitching to VCs.
• [54:41] Andres’ advice to beginning entrepreneurs and beginning VC investors.

Resources & People Mentioned

• First Rock Capital - Andres’ VC Firm
• Groove Shark
• On Swipe Publishing
• Uber
• Yelp
• Workep
• CORFO
• Authy
• Mercado Libre
• Despegar
• Rappi
• Snapchat
• Pulso social
• Skype
• Bluesmart
• Trulia
• Mercenaries: Post by Fred Wilson
• Fomin
• Inadem
• Bancoldex
• Cambly
• The Intern Group

Connect With Nathan

• www.NathanLustig.com
• www.MagmaPartners.com
• On Twitter
• On LinkedIn

If you enjoyed this episode - would you mind subscribing and leaving a rating and review?

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Ep 18 Guimar Vaca Sittic, Building and Investing in International Online Marketplaces

A good startup accelerator / incubator needs to be lead by successful entrepreneurs.

As Guimar has become familiar with the world of startups and startup incubators he’s become very aware of how many so-called accelerators are making recommendations to new companies based on their best guesses. In his mind, that’s inconceivable.

In this conversation, he tells why a good startup incubator needs to have leaders with entrepreneurial experience and success under their belts and what it takes to build a good accelerator that truly serves its startups well.

A nomadic life for personal or business reasons is more affordable than you think.

One of the unique things about Guimar Vaca Sittic’s story and the way he practices business is that he spends a good deal of his time on the road, intentionally putting his feet on the ground in places where new things are happening. His goal is to see what’s going on in different places so he can stay on the cutting edge in his support of international marketplaces and startups.

In this conversation, we talk about the myth that the life of a digital nomad is expensive and Guimar shares how he is able to pull it off with a very modest amount of expense. If you’re interested in running your business from any place in the world, you’ll get some great insights from what he shares.

Maximize the pace at which you learn and put yourself in places where you can learn.

One of the most powerful things Guimar shared in our conversation was that his success has taught him that anyone can be successful if they are committed to doing what it takes to continue learning. He says that the more you can maximize the pace at which you learn, the more you’ll be able to take advantage of the opportunities that come your way. He's demonstrated it to be true, so take the time to listen to what he has to share.

Why you should never be shy about reaching out to the influencers in your niche.

One of the best ways Guimar Vaca Sittic has found to maximize his ability to learn and grow has been to put himself in the company of people who are at a higher level than he is. The concept is nothing new but Guimar emphasizes that being shy about it will never serve you well. He has no problem reaching out to someone he wants to meet and learn from, even through cold phone calls or emails. His experience has taught him that people who are successful want to help others if they believe they are serious about personal growth and taking the action needed.

Outline of This Episode

• [0:17] How Guimar got started in the startup world.
• [2:33] The path Guimar followed from Argentina to Chicago and beyond.
• [5:00] How Guimar was able to make his Argentinian startup happen.
• [7:45] Guimar’s advice about Latin American startups persevering toward bigger ideas.
• [12:09] The next steps after acquisition.
• [20:30] The choices Guimar made about traveling and the real costs of doing so.
• [27:34] Why FJ Labs has taken on so many international investments.
• [32:30] Success stories in building and funding businesses.
• [37:50] Why Brazil for the online used car marketplace?
• [39:54] The dynamics of working with a remote team.
• [44:55] Advice Guimar would give himself if he were starting over.

Resources & People Mentioned

• FJ Labs Venture Capital
• Instacarro
• Quasar Ventures Argentina
• Etsy
• Boxed - online retailer similar to Costco
• Chrono24 - global online marketplace for used luxury watches
• Eaze
• Slidebean
• Fabrice Grinda

Connect With Nathan

• www.NathanLustig.com
• www.MagmaPartners.com
• On Twitter
• On LinkedIn

If you enjoyed this episode - would you mind subscribing and leaving a rating and review?

SUBSCRIBE, RATE, AND REVIEW ON iTunes

SUBSCRIBE, RATE AND REVIEW ON Stitcher

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Ep 17 Codie Sanchez, Championing Diversity and Encouraging Investment in Latin America

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Ep 16 Santiago Zavala, Investing in Latin American Startups

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Ep 15 Brian Requarth, Building THE Online Portal for Real Estate in Brazil

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Ep 14 Sebastian Vidal, Building a Powerful Startup Accelerator in Puerto Rico

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Ep 13 Jason Grullón, Building a Successful Sustainable Clothing Brand in the Dominican Republic

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Ep #12 Federico Vega, Transforming Transport Logistics in Latin America

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Ep 11 Alejandro Freund, Pioneering Ecommerce in Latin America

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Ep 10 Patricio Williams Becú, Investing in Latin America Through Funding Farmers

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Ep 9 Diego Saez-Gil: Smart Luggage To Make Travel Easy and Enjoyable

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Ep 8: Nathan Klarer

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EP 7: Nora Leary

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Ep 6: Jose "Caya" Cayasso

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Ep 5: Devin Baptiste

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Ep 4: David Assael and David Basulto, Archdaily

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Ep 3: Nicolas Shea

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Ep 2: Adrian Fisher

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Ep1: Crossing Borders - David Lloyd

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