A new year begins and this one is set to be a very eventful one for us as we announce our plans to expand from our current configuration as a startup studio running acceleration programs, and begin our journey in adding a key complementary ingredient for support early stage ventures: funding.
Through our programs, we are connecting with some of the most relevant early stage founders with whom very fruitful collaborations have resulted. Now, our next goal is to be able to support them through the injection of venture capital by operating as a fund with a very different makeup from other VCs in the market.
We believe we are in a privileged time and place to support entrepreneurs through the creation of a wider community and stronger bonds, focusing on impact founders with high-potential startups with a particular emphasis on Latam.
Our thesis
Our strategy is to invest in startups with
- Top founders with proven track record in leading & growing innovative organizations
- Robust, in-house tech development capabilities
- Positive & measurable positive impact on local and global communities
- A scalable business model that solves a significant pain point for a big market
Why?
Latam region VC growth outlook is great according to a recent study
- Latam’s share of global VC is 2.9% for 2022, compared to 0.9% in 2018
- Mexico’s VC funding as % of GDP is 0.24% vs 0.66% globally, suggesting still a long expansion to reach just average levels (Latam Innovation by Sling Hub / Itaú BBA)
Startups that go through accelerator programs show to be more successful:
- The estimated probability of reaching an exit go up from 15% to 28% for startups that participate in an accelerator
- Total Value to Paid in (TVPI) for traditional startups is 1.6X, while the return from those that went to top accelerators is 5.8X (YCombinator) and 3.0X (500 Global)
Studio launched startups tend to be even more successful
- Studio backed startups, on average, have returned 53% IRR compared to 21% from traditional startups
- Total Value to Paid in (TVPI) for these startups is 5.8X compared to 1.6X when compared to those not backed by a studio
When you combine these multipliers the odds stack up to a pretty good outlook and for that reason believe we are in position for an amazing run and at the very beginning of an incredible journey.
We invite you to learn more about opportunities to be part of this story by reaching out to our team.
Best, Francisco
