Latin America is the perfect market for full stack startups. I’m convinced of it after living and working in Latin America for the past four and a half years and am even more convinced after having met, worked with and reviewed over 600 startups in the past year and a half as managing partner of Magma Partners in Santiago, Chile.
So what is a full stack startup and why am I convinced that Latin American entrepreneurs should be exploring full stack startup business models?
First, lets start with a definition. Chis Dixon coined the term Full Stack Startup in a blog post in March 2014. He says that a full stack startup is a “…complete, end-to-end product or service that bypasses existing companies.” It bypasses the old, existing hierarchy to be able to control the entire experience. According to Dixon:
Prominent examples of this “full stack” approach include Tesla, Warby Parker, Uber, Harry’s, Nest, Buzzfeed, and Netflix. Most of these companies had “partial stack” antecedents that either failed or ended up being relatively small businesses.
So why are companies following the full stack method instead of the old school method of partnering with large companies? (more…)
I’ve lived in Chile for four and a half years now and have had an ample chance to sample Chile’s many restaurants. Although Chile’s restaurant scene has made incredible strides since 2010, unlike places like New York City, San Francisco, Buenos Aires or Madison, Wisconsin, Chile isn’t a place where you can walk into a random restaurant and find a great meal.
The average Chilean restaurant isn’t that great. You’ll likely end up with some meat and potatoes with little flavor, low quality food or overpriced fare with little connection to value for money. I’ve created a list of the restaurants that I actually like and go to regularly. Please enjoy my favorite restaurants in Santiago and Chile.
I’m always looking for new restaurants to add, so please post any ideas or feedback in the comments! (more…)
I’ve noticed an interesting phenomenon as I’ve worked in Chile more deeply over the past two years building companies. Many, if not most, Chileans believe they don’t have much influence on events in their lives and in their country.
I see it all the time in multiple contexts: business, politics, customer service and corporate bureaucracy. I’m very familiar with this feeling in politics, as I feel the same way about non-local US politics, but at first I didn’t understand it in the other contexts.
For example, in business, if Chileans get screwed over, they are less likely to take to social media or write a blog post detailing their experience than people in the US are. When there was an issue with a Chilean business incubator, it festered for months before a foreign entrepreneur shared his experience and only then did nearly a dozen Chileans corroborate their experiences. I asked some of the Chilean entrepreneurs why they hand’t said anything before, and they all said that they didn’t think they could do anything to fix the situation and that they didn’t want to rock the boat. (more…)
Ever since I started blogging, I’ve done a year end post summarizing what I’ve done in the past year. These posts are mostly for me, so that I can look back and remember what I did, what I was thinking and what was important to me each year. Previous versions (2000s, 2009, 2010, 2011, 2012, 2013). Here’s what I did in 2014.
Like 2013, I rang in the new year on a friends balcony overlooking Santiago surrounded by friends, including my friend Polsky who was visiting from the US. Polsky and I took off for southern Chile, visiting Pucón, Frutillar and Puerto Varas during the first week of 2014. I was back in the south six weeks later when my parents and brother came to visit, adding Chiloé to the list. Every time I go to the South, I don’t understand why I don’t go more. It’s relaxing, stunningly beautiful, has incredible food and, in summer, has amazing weather.
I always come back from the south with new ideas, rejuvenated to get back to work and this time was no different. While 2013 was a year of starting many new projects, 2014 was the year that I focused.
In January, I partnered with Francisco Sáenz and Diego Philippito launch Magma Partners, a private seed stage investment fund and accelerator based in Santiago, Chile. Our goal was to bring US style investment and know how to Chile and pair it with Chilean connections and mentorship to help entrepreneurs create successful businesses.
A year in, I’m extremely proud to say that we’re already starting to see results. Over the course of 2014, we reviewed over 350 startups, met hundreds of entrepreneurs and finally invested in 13 startups. Running a fund has been much more work than I thought it would be. But it’s been worth it.
We’re already starting to see promising results from multiple companies, but 2015 will bring the hard part: helping our 13 portfolio companies make their way from nascent startups to real, scaling companies. I have high hopes and 2015 will be an extremely important year for Magma and our portfolio companies.
In addition to Magma, I started the year with four active projects Andes Property, La Condoneria, Startup Chile consulting and teaching entrepreneurship at multiple universities. By mid year, my head was ready to explode from so many different projects taking up brain space and I started to focus.
First, I realized that I was using the same part of my brain to mentor Magma companies as I had previously used to teach entrepreneurship at universities. I knew I had to stop teaching because I was getting mentorship overload, so I found other entrepreneurs to take over my classes. Next, I stopped doing Startup Chile consulting, as it was taking up too much brain space and tried to figure out how I could get La Condoneria and Andes Property to run more autonomously.
After a long search, I hired employees to help run La Condoneria and Andes Property, both of which continue to grow quickly month over month. At the start of the year, I was personally picking, packing and taking packages of condoms to chilexpress (chilean fedex) five times per week and was personally showing apartments to foreigners for Andes Property. I still work on both businesses, but Andres, Gonzalo and Bernadette have really stepped up to the challenge to take responsibilities away from me.
2014 was the year that I finally started to get better at spanish again after feeling like I’d plateaued in 2013. I still speak with a strong accent, but I can say 95% of what I want to say and am now happy making a joke per day, up from one per week last year. Baby steps.
2014 was the first time I wrote an entire post on my blog in Spanish and the first time one of my spanish blog posts went semi-viral in Chile. It was the first year I presented to large audiences in Spanish without notes, just like I do in English. I also did multiple radio interviews in Spanish for the first time. I’m still not as good as I’d like to be and I hate to see eyes glaze over because I’m not as engaging in Spanish and I am in English.
2014 was a great year for travel, as I explored Chile’s south on two separate trips to kick off the year. In February I took an incredible ten day trip to Uyuni, Potosi and Sucre in Bolivia. I’d previously been to Uyuni in 2011, but never to Potosi and Sucre, both of which were amazingly different from anything else I’d ever seen. I took a mile long tour of the Potosi mine, where miners as young as 10 years old use pick axes, dynamite, coca leaves, pure alcohol and their brute strength to try to scratch out a living. Sucre was an amazingly beautiful window into the Spanish Colonial past.
Cerro Rico, Potosi
I took an express trip to Lima for the first time when my Aunt Nancy and Uncle Paul decided to come go to Machu Picchu. It was fun exploring old Lima with them and I ate the best meal of my life at Maido, a japanese/peruvian fusion restaurant. I can’t wait to go back to Peru to continue exploring the rest of the country.
2014 was a World Cup year and I made it three world cups in a row, spending three amazing weeks in Brazil. I saw 10 matches in five different cities, traveling over 14,000 miles in the process. My friends Enrique, David, Sandra and Tiago each traveled with me for parts of the trip, making it an incredible trip. I’ll never forget the marathon trips getting to the first three USA games, early and late goals in USA/Ghana, Jermaine Jones’ goal in USA/Portugal and the trip to the jungle, and the incredible spirt of the Chilean fans, even in defeat against the Netherlands and Brazil. I’m so thankful I’ve been able to attend.
USA Germany
I took three quick trips back to the US, one in late May to visit family, another for a friends’ wedding and the third for my group of college friends’ 10th annual Friendsgiving and the holidays with my family. I think I stayed better connected to family and friends by visiting more, but for shorter amounts of time each visit, a plan I’d like to keep up in 2015, rather than one 5-6 week long trip as I’ve done in previous years. It still isn’t fun to miss weddings, bachelor parties, thanksgiving, the Forward Festival and birthdays, but life is all about tradeoffs.
I made it back to Madison on all three trips, including an extended stay where my friends and I reunited for a weekend of Badger football and memories. I honestly can’t believe it’s been ten years since I started college. Time really flies. Madison is noticeably more dynamic each time I visit. The tech scene is on the leading edge of this new dynamism and I’m thankful and proud of Madison’s entrepreneurs for paving the way. Capital Entrepreneurs (made one meeting this year) and Forward Fest (sad I missed it this year) continue to be pillars of he newly emergent startup scene, with other entities and institutions arriving to continue to progress.
2014 saw me focus on two key businesses, continue to explore South America, attend a world cup and still stay connected with my friends and family in the US. I’ve been very lucky that the years keep getting better and better and I hope 2015 is no exception.
Favorite Posts of 2014
2014 was my lowest blog output in the six plus year history of my blog. And even worse, I didn’t make up for the lack of quantity with better quality. I’m not sure if its because I’m writing less or because my brain is getting mixed up because I’m speaking more spanish, but my writing is noticeably worse than in previous years. Last year 10 posts made my list. This year only four made the cut. I need to get back to writing more.
1493: Uncovering the New World Columbus Created – I learned more from this book and its companion book 1491 than I’ve learned in a really long time. 1493 talks about how things changed after Columbus arrived in the Americas. It busts myths, adds new facts and really made me think.
1491: New Revelations of the Americas Before Columbus – This book completely changed my understanding of what the Americas were like before Columbus and opened my eyes to some of the amazing things that native cultures in our hemisphere had done. Really worth reading and makes me want to explore Peru and Mexico.
Five Days at Memorial – An investigative journalist looks at what happened at Memorial Hospital in New Orleans before, during and after Hurricane Katrina where doctors potentially euthanized patients.
The Boys In The Boat – A history of the US rowing team in the runup to and at the 1936 Olympics. Entertaining story at the confluence of history and sports.
