Nathan Lustig

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

Category : Chile, Crossing Borders Podcast
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Horacio Melo and I have been trying to organize a time to do this podcast for a few years and I’m excited to finally be able to share it. Once the Executive Director of Start-Up Chile, Horacio went on to build his own startup – just two months after becoming a Dad for the first time. Horacio knows what it takes to build a great company; after all, he watched and mentored over 1000 startups as they passed through Start-Up Chile. His solar energy company, Solarity, has raised three rounds of investment, starting with US$650K in their seed round, then adding a US$18M in follow on funding.

Horacio can speak to the difficulty of selling an innovative business idea to conservative corporates in Chile and Latin America, despite Chile being one of the best places in the world for solar energy. He also discusses his transition from corporate jobs to entrepreneurship, the importance of culture in building a sustainable startup, and what he learned as Executive Director of Start-Up Chile.

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Why Magma Partners Loves Corfo But Doesn’t Take Its Money

Category : Chile, Latin America Startups and Investing
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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.

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

Category : Crossing Borders Podcast, Mexico
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The Mexican venture capital and startup ecosystem is changing fast. And ALLVP’s Federico Antoni has been there helping it grow since 2012 when he and his partner Fernando Lelo de Larrea started their first fund. The once-CEO of a Mexican fashion company started investing after he failed to reinvent an aging consumer brand. The transition from a corporate position to the world of entrepreneurship might not be obvious, but Federico leveraged his experience teaching at universities to help him raise not one, but three venture capital funds that have gone on to support not only Mexican but also Latin America startups.

I sat down with Federico on this episode of Crossing Borders to discuss how he raised US$6M in 2012, before startups were popular, lessons learned while raising his second and third funds, the Cornershop acquisition for $225M by Walmart, in which ALLVP was an early investor, CORFO’s effect on the Chilean VC ecosystem, and China’s impact on the Latin American ecosystem. Check out this episode to hear Federico’s journey from the corporate world to becoming a prominent player in Latin America’s startup ecosystem.

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

Category : Bolivia, Crossing Borders Podcast
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Most dialogues about Latin America’s startup ecosystem overlook Bolivia. The landlocked 11-million person country has yet to develop a thriving homegrown tech scene, but it shows tremendous potential for growth. It often just takes one or two success stories to catalyze the whole industry. Carlos Jordan, founder of UltraCasas and UltraCreditos, might be just the entrepreneur Bolivia needs. After raising the biggest round in Bolivian history from international investors, Carlos became one of the most influential actors in Bolivia’s nascent tech ecosystem. He takes this responsibility seriously, reserving a fierce optimism for Bolivia’s development potential.

I sat down with Carlos on this episode of Crossing Borders to discuss Bolivia’s nascent entrepreneurial ecosystem, Carlos’ role in building the industry, the inflection point for his business, UltraCasas, and what it was like to raise funding from abroad. We also talk about doing business in Bolivia and the future of its tech ecosystem. Carlos is the first Bolivian entrepreneur to join me on Crossing Borders, so check out this episode to learn more about one of Latin America’s youngest tech economies.

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