The Changing Face of Entrepreneurship in Latin America: A Conversation with Ivan Montoya

Intro

• Guest: Ivan Montoya, a LatAm Super Angel & VC. Follow him out on LinkedIN
• Focus areas: #fintech, #proptech, #logistics, #latinamerica, and #latamstartups.

Notes Insights into the Startup Ecosystem

• In Latin America, traditional methods still have a place, and macro-level influences are impactful, but the atomic level of capitalism is most vital.
• Technology startups have to consider various factors like interest rates, product pricing, investor risk, and tax incentives.

Relationship Between Investments and Startups

• The investment environment is dependent on both investors and founders, and the company's stage.
• A clear separation should exist between investors and the business, with distinctions between super passive investors and active investors.

Investor Ownership and Investment Trends

• The investors' role in company ownership is crucial.
• There's a shift towards similarity in investing in private companies in Latin America.
• In 5 years, generalizations about Silicon Valley may change.

Ecosystem and Capital Raising in LatAm

• Confidence levels in raising capital differ.
• 2nd and 3rd time investors are less rare in Silicon Valley, and the difference between LatAm and others is startup types and deep tech focus.

Ambition Level and Global Opportunities

• Ambition levels differ across regions, but a focus exists on LatAm for global opportunities.

Networking and the Role of Intros

• Startups have evolved from a clubby environment to a more open one, where introductions are not limited to referrals.
• Different backgrounds create diversity, leading to great companies, as in Silicon Valley.

Investment Opportunities and Strategies

• The role of FOMO (Fear of Missing Out) and how it influences investment decisions.
• A focus on long-term prospects over quick gains.

Brazilian Startups

• Overview of Brazilian startup landscape, which is ahead of other Latin American countries.
• Banks were traditionally oligopolistic; now, Central Bank drives innovation.
• Industry sectors include cyber security, hospitality, logistics, and social media.

Latin America Trends

• Trends include consumer and B2B focus, and a comparison to U.S. debt/credit.
• Innovations in access to credit, with examples of companies like Onecarnow.

Macro and Micro-Level Innovations

• Inertia of organizations in the U.S. compared to Latin America.
• Innovation in home lending and credit systems, including AI and technology in collection processes.

Economy, Physics, and Psychology

• Economy as a mix of physics (e.g., positive cash flows, unit economics) and psychology (e.g., willingness to endure losses).
• Historical examples and reminiscing about market scenarios.