Business

The booming Latin American startup landscape from the investors' point of view

Thiago Ayres, Mariana Foresti, and Magnus Arantes reveals what investors are looking in order to bet on Latin American startups

an investor view on brazilian startup market

Softbank, Monashees, and a lot of big global investors are aware of the opportunities that Latin American startups can offer and finding successful cases of these companies that raised foreign investments becomes more common than ever in the region. 

Just in the past few days, for instance, we had great news for small and big players in the region: Brazilian food startup Fazenda Futuro raised $8.5 million from Monashees, Dataplor startup reached $2 million in capital in a third round of seed funding, and Nubank become the first startup in Brazil to be valued at $10bi after the last funding. 

It seems a lot for just one week, but it is only a small part of the great business potential of Latin America. But why this market is looking so bright for investors right now?

Thiago Ayres from Curitiba Angels, Mariana Foresti from Hi.Capital, and Magnus Arantes from Harvard Angels got the answer. The Brazilian experts get on to the stage of an event focused on the startup scene in Curitiba, one of the cities considered as tech-hub in Brazil, to explain what investors are looking for in order to invest in a Brazilian startup. 

Photo: Mariana Foresti, Magnus Arantes, Rafael Tortato from SEBRAE, and Thiago Ayres

Latin America’s disruptive scene

Uber effect“, this was the expression used by Thiago Ayres to describe the current startup landscape in Latin America. Unlike developed markets, in the region aren’t businesses that came to improve a service that got better results, but those who solve real problems and challenge established institutions. “David Vélez, the founder of Nubank, did you imagine how many times he must have heard “you are really gonna fight with banks?”, well he did it and was well-succeded“, he explained. 

But just an innovative business isn’t enough to win this market. “In Brazil, we now have more capital than we’ve ever had before, but still being necessary to go step by step“, said Magnus Arantes. “To raise an investment the startup not only has to have capital potential but also has to offer a productive relationship with the investors.

That’s why finding qualified entrepreneurs is one of the key points to close an investment deal, according to Mariana Foresti and Magnus Arantes added that the startup team “must do their homework before asking for investments“. It means that a great business potential it’s a fact, but the ability to build trustable relationships with new partners is what can put a startup on the spotlight. 

The perfect match

With the fast-growing startup market in Latin America, the solutions offered by this new business are not the only ones who are getting more sophisticated, but the entrepreneurs are also getting ready to deal with complex negotiations. The result of it is a perfect match of innovation with business maturity. 

The market is ready, and there’s never been a better moment to bet on it.