Inaugural

Survey of
Latin American Startups
A Benchmark of 200+
Early Stage Tech Companies
With Insights from the Region’s Leading Entrepreneurs

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Inaugural Survey of
Latin American Startups
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Intro....................................................................................................................... ii

About LAVCA & Facebook.........................................................................iv

TABLE OF
CONTENTS About The Survey............................................................................................v

Participating Startups...................................................................................vi

Respondent Breakdown..............................................................................vii

Who Are Latin American Tech Entrepreneurs?....................................1

Where Are The Startups?.............................................................................2

How Are Startups Structured?...................................................................3

Startup Go-To Market Strategy................................................................ 4

Startup Revenues............................................................................................5

Hot Sectors.........................................................................................................6

How Are Latin American Startups Making An Impact?....................7

Mobile First.........................................................................................................8

Frontier Tech.....................................................................................................9

Job Creation....................................................................................................10

Startups & Gender Diversity....................................................................... 11

Latin American Tech Talent....................................................................... 12

Startup Employee Equity............................................................................ 13

Startup Funding............................................................................................. 14

Access To Investors...................................................................................... 15

Role Of Investors In Latin American Startups.................................... 16

Top Challenges To Startup Growth........................................................ 17

LAVCA VC/Tech Products......................................................................... 18

i
Inaugural Survey of
Latin American Startups
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LAVCA conducted an Inaugural Survey of With Facebook's support, LAVCA broadened its scope
Latin American Startups to capture and and invited startups with any amount or type of funding

INTRO report on the evolution and impact of

220+ of the region's leading early stage
to respond to an inaugural Startup Survey. Over 220
verified startups (see methodology) across sectors,
tech companies. stages and geographies replied, establishing the region's
first benchmarks on founder experience, jobs creation,
This research establishes a baseline workforce diversity, regulatory barriers to growth, and the
of critical information at an inflection point for Latin impact they are generating and measuring.
America's entrepreneurial and tech ecosystem -- in 2018
venture investment reached record levels, driving an The findings point to an experienced set of leaders with
increasing number of startups to unicorn status. global ambitions for their technologies as well as a clear
focus on driving impact locally:
As a non-profit member organization of the leading
private capital investors in Latin America, LAVCA Jobs: The 227 startups that responded have created
witnessed first-hand the maturing of the region's early- 25,000+ full-time jobs in the past ten years
stage tech market over the past decade. In 2016, LAVCA
used proprietary VC data to map out all known tech Experience: 66% of participating founders have
startups with US$1m+ in VC financing, the basis of a started multiple companies; 59% advise other
verified annual Directory of Latin American Startups. startups

The list of verified startups more Growth: 89% of startups reported positive net
LATIN
AMERICAN than doubled by 2018, while VC revenue growth for 2017-2018
investment into Latin American
Footprint: 86% of startups have 1-2 local
startups had almost quadrupled.
operating subsidiaries
In this context, LAVCA launched
the Latin American Tech Growth Coalition to align efforts Frontier Tech: 73% of startups across all sectors
of leading global and Latin American tech companies and are using some form of big data, machine
investors in support of the region's high growth startups. learning, or artificial intelligence.
Members include Facebook, Google, Microsoft, Telefonica
Open Innovation, Qualcomm Ventures, Riverwood Capital, Impact: 59% are measuring some form of impact;
MercadoLibre, Globant, Movile, and KIO Networks. job creation and financial inclusion top the list

Diversity: 29% said they've reached gender parity

or greater in their workforce

ii
Inaugural Survey of
Latin American Startups
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Major Milestones
In 2018, VC managers invested just under US$2b, Nicolas Szekasy, LAVCA board member, Kaszek
INTRO compared to US$500m in 2015. New unicorns
include iFood, Rappi, Nubank, Movile, Stone
Ventures Managing Partner, and a
co-founder of MercadoLibre,
Pagamentos (IPO), and PagSeguro (IPO). credits a new generation
of entrepreneurs that "The next 20 years
At the same time, major global tech investors "dream big, execute look even brighter.
entered the market to back the region's most with excellence, and We are at an inflection
innovative early-stage startups. Rappi, Loggi, 99, build amazing, high point in the region as secular
iFood, and others have attracted global funding impact companies." technology trends, depth of
and competitors into a fierce battle over local talent, flows of capital, and
transportation and logistics. Brazilian fintech success stories feed and
Nubank has become the world's largest digital bank accelerate this virtuous
outside of China, raising over US$400m in 2018 cycle." -Nicolas Szekasy,
from DST Global, Tencent, Sequoia Capital, Kaszek Kaszek Ventures
Ventures, and others. 

In March 2019, SoftBank announced a US$5b VC

fund for Latin America, and MercadoLibre raised
US$1.85b from PayPal and others to extend its
ecommerce and digital payments infrastructure
through the region.

Latin America has emerged as a key consumer tech

market globally. Beyond rideshare, Airbnb, Netflix,
Spotify, and WeWork have flagged Latin America
as a top growth market globally. Amazon launched
its first-ever debit card in Mexico; Uber launched its
first digital wallet in Brazil; Facebook is building a
1,553-mile fiber optic cable to boost internet speeds
in Argentina.

iii
Inaugural Survey of
Latin American Startups
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CREATED
BY LAVCA

Powered by Facebook

The Association for Private Capital Investment in Founded in 2004, Facebook's mission is to give
Latin America (LAVCA) is a not-for-profit people the power to build community and bring the
membership organization dedicated to supporting world closer together. People use Facebook to stay
the growth of private capital in Latin America and connected with friends and family, to discover what's
the Caribbean. Members include over 190 firms, going on in the world, and to share and express what
from leading global investment firms active in the matters to them. Globally, there are more than 2.7B
region and local fund managers to family offices, people using Facebook, WhatsApp, Instagram or
global sovereign wealth funds, corporate investors, Messenger each month.
and international pension plans. Member firms
control assets in excess of US$65b, directed at
capitalizing and growing Latin American businesses.
LAVCA's mission – to spur regional economic
growth by advancing private capital investment
– is accomplished through programs of research,
networking forums, education and advocacy of
sound public policy. Visit www.lavca.org for more
information.

iv
Inaugural Survey of
Latin American Startups
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The Inaugural Survey of Latin American Startups summarizes the plans, information,
experience, and opinions of 227 verified startups. Conducted by The Association of Private
ABOUT THE Capital Investment in Latin America (LAVCA) in Q4 2018, this survey represents the most comprehensive
SURVEY set of information on Latin American startups available to date.

Results are reported in aggregate and Responses were vetted for thoroughness and
include responses from 227 verified credibility, with the majority (88%) from C-level
startups: executives:

with US$500k- CEOs

166 US$100M+ in
self-reported
CFOs $

RESPONSES funding Founders

(excluding founders capital) COOs

from qualified tech

startups with self- 88%
reported alternate RESPONSE
61 funding sources
(angel, accelerator, debt,
RESPONSES bootstrapped, etc.) or
that didn't disclose capital
raised.

Participating startups were vetted by LAVCA's research team across a range of primary and
secondary sources.

DISCLAIMER The information contained in this publication has been gathered from sources believed to be reliable,
but its accuracy and completeness are not guaranteed. LAVCA shall not be responsible for any inaccuracy unintentionally
included in this publication. Readers should consult and rely solely on their own advisers regarding all pertinent
information, legal, and accounting issues. The information, formats, themes, and presentations contained in this
publication may not be reproduced, published, shared or stored in any form, including electronically, without
express written permission of LAVCA. © 2019 by the Association for Private Capital Investment in Latin America (LAVCA).
All rights reserved.
v
 Inaugural Survey of
Latin American Startups
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The following is a sample* of startups that participated in LAVCA's Inaugural Survey of Latin
American Startups Participants ranged from bootstrapped and early stage startups serving local
PARTICIPATING markets across the region, to more established tech companies with global funding. 78% of participating
STARTUPS startups have over US$500k in funding.

4Vets Afluenta Agenda Edu Agrosmart Ahgora aLavadeira Ben & Frank
Bitso Boletia bxblue Car10 ClickOnero Cobli ComparaOnline Credijusto
Cumplo Dating LATAM Decidata Descomplica Digital House eduK
ESCALA Escale Flapper GAIA Design Gaveteiro GIRA Hello Zum HOGARU
Homie Horus iFood Infracommerce Intellibrand JetBov Kinedu Konfio
Kueski LentesPlus Liftit Liv Up Mandaê Movile NATGAS NotCo
Nubank QuintoAndar Resultados Digitais REBEL Recorrido Revelo
S4 Agtech SalaUno Sempli Sirena Skydrop Solis Aquecedor Solar SumOne

SVA Tecnologia e Sistemas Taximo Technisys Tpaga Tributi Trocafone

Ualá Vida Tec (GRUPO VI-DA) VivaReal Volanty Voopter

*Participation and individual responses are confidential unless otherwise agreed to with the Startup.

vi
 Inaugural Survey of Uruguay 1.8%
Latin American Startups
STARTUP HQ4.9%
Peru Other** 2.7% STARTUP SECTOR
Powered by Facebook (self-reported)
USA* Uruguay 1.8% (self-reported**)
  12% 23%
5.8% ­
Peru 4.9% Other* 2.7% 

 9% 18%
Colombia
USA**
  

  7% 14%
6.7%5.8% 

 7% 14%
RESPONDENT  



 7%
13%
BREAKDOWN Colombia
6.7% Chile
Brazil
42.9%

  


13%
6% 12%
7.1%
 


  6% 10%
Brazil
Chile 42.9% 

 


 5% 9%
Argentina
7.1%
8.9%  5% 8%
  

  4% 8%
  
Argentina Mexico   7%
8.9% 19.2%  
  4%
 6%
Mexico    3% 42%
19.2%  3%
Percentage based  on 207 responses
 22%
0%
*Other includes Adtech & Marketing, 5%
Business 10% Digital 15%
Services, 20%
Media & Entertainment, 25%
Percentage based on 224 responses
Human Resources, Internet of Things, Real Estate, Cloud Computing, Hospitality, Travel
*Other includes Ecuador, Cayman Islands, Costa Rica, and Bolivia & Tourism, Industrials, App Development & Testing, Hardware, Clean Tech/ Alternative/
Other* 7% Renewable Energy, Energy, ERP, Construction, Social Networks, Chemicals, Digital
 **Startups headquartered in the US were included if they were
founded by a Latin American, have 35 Security, Event Management, and more.
 serve 34 operations in the Other*
34 a Latin American market.
region, and
7% **Respondents self-selected sectors from a pre-set list and could select multiple sectors.
32

STARTUP BY YEAR FOUNDED 27 RESPONDENT TITLE
Number of Startups

 25 25


34 34 35

 32

Other* 7%
 27
Number of Startups

11 25 25

 CFO 5%
Business Development
 4 or Sales 3%
Other* 7%

 
11        COO 2%
  CFO 5%
Year Founded Strategy 1%
CEO or Founder Business Development
 4 81% Board Member
or Sales 3%
or Chairman 1%

         COO 2%
Percentage based on 227 responses

Year Founded Strategy 1%
*Other includes Chiefor
CEO ofFounder
Staff, Chief Product Officer, Chief Risk Officer,
Chief Marketing Officer, Chief TechnologyBoard
81% Officer,Member
Executive Director, and vii
Operational Director. or Chairman 1%

FinTech 12%
RESPONDENT NO. OF FULL-TIME EMPLOYEES STARTUP FUNDING
BREAKDOWN (self-reported) (self-reported)

45.8%
20.1% 28.1% 12.1% 15.2%
45.8%
20.1% 28.1% 12.1% 15.2%
Employee count

21.7% 22.2%
Employee count

Under 10 11-30 31-50 51-99 21.7% 22.2%

8.5%
Under 10 11-30 31-50 51-99 1.9% 8.5%
1.9%
> US$100m
> US$20m - US$100m > US$1
11.2% 9.8% 1.8% 1.8% > US$20m - US$100m
11.2% 9.8% 1.8% 1.8% less than US$500k > US$5m - US$20m
less than US$500k > US$5m - US$20m

100-200 201-500 501-1,000 1,001+ > US$500k - US$5m

100-200 201-500 501-1,000 1,001+ > US$500k - US$5m
Percentage based on 224 responses Percentage based on 212 responses

LAVCA would like to thank the following organizations for their important
support promoting the survey in their networks:
Endeavor AMEXCAP ARCAP
ColCapital ACVC ABVCAP
Under 10 employees

10 employees

Telefonica Open Innovation Silicon Valley Bank

employees
es

Google Launchpad Gunderson Dettmer

51-99 employees
31-50 employees
11-30 employees

11-30 employees
Underemploye

20.1% 28.1% 12.1%

20.1% 15.2% 12.1%
28.1% 15.2%
viii
51-99
31-50

es
es

s
s
Inaugural Survey of
Latin American Startups
TIN AMERICAN
Powered by Facebook
LA TE
RE

C
A

H
O

EN
WH

TRE
PRENEU
THEY ARE EXPERIENCED

66% of participating founders

have started multiple companies
"Our previous

R
GLOBAL The longer you’ve been around, the companies were
BENCHMARK better your odds of success

S?
(according to a Kellogg School study) smaller, in a time when
VC was rare in Latin
86% of startup founders are over 30 years America. We learned about
persistence and about
old and 55% are 30-40 years old
GLOBAL The average age of startup founders in the
THEY ARE managing in a frugal
way." - Andre Penha,
BENCHMARK US is 42 (according to study by MIT Sloan) ACTIVE Founder & CTO,
ECOSYSTEM QuintoAndar

80% of founders studied BUILDERS

and/or worked abroad
GLOBAL
BENCHMARK
Immigrants founded more than half of
US-based unicorns as of 2016 (according to
59% of founders advise other startups
National Foundation for American Policy, quoted in WSJ)

"Experience 41% of founders are angel

failing and investors in other startups
succeeding are
very important."
-Matias Muchnick,
CEO, NotCo

1
 Mexico 19.2%
*USA 5.8%
Inaugural Survey of
19.2%
ARE THE ST
Latin American Startups Mexico
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RE AR
HE T
W

U
PS
?
Colombia 6.7%
86%
Colombia 6.7%
of startups have
1-2 local operating subsidiaries Brazil
Brazil 42.9%
42.9%
Percentage based on 220 responses

23% of startups with US$500k+ in Peru

funding have acquired or invested in
Peru 4.9%
4.9%
other companies
Percentage based on 161 responses

STARTUP M&A
Chile 7.1%
n Mexico's Grin and Brazil's Yellow merged to form
Grow Mobility
Chile 7.1%
n Brazil's iFood acquired multiple food delivery startups:
Pedidos Ya, SpoonRocket, Papa Rango, Devorando Uruguay 1.8%
n  olombia's Rappi acquired Payit, a Mexican
C
blockchain-based payments platform
n  hilean insurtech ComparaOnline acquired
C
Argentina 8.9% Uruguay 1.8%
ComparaMejor
n Brazil's Neoway acquired Sevennova, an AI platform
n Brazil's Loggi acquired adtech platform WorldSense Argentina 8.9%*Other 2.7%
Percentage based on 224 responses
*Startups headquartered in the US were included if they
were founded by a Latin American, have operations in
the region, and serve a Latin American market.
2
*Other 2.7%
Inaugural Survey of
Latin American Startups
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HOW ARE STARTUPS STRUCTURED?

Startups with under US$500k

in funding tend to have Local Company Structure

75.6%
Partners at law
firm Gunderson Dettmer
say that incorporating locally is
often more cost effective for early-
stage companies raising smaller
funding rounds until they reach a
certain scale or consider
international fundraising.
34.3%

Startups
21.7%
with US$500k+ Split Between Local, Delaware, and Cayman Structures
in funding

37.1%

Percentage based on 220 responses

3
Inaugural Survey of
Latin American Startups
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STARTUP GO-TO MARKET STRATEGY

69% of Latin American startups identify B2B as core to
their go-to market strategy

B2B DOMINATES
"On
go-to
B2B2C market
models,
23% things are truly
B2C changing," says
Patrick Arippol of
29% DGF investimentos, an
investor in Resultados
Digitais, Ingresse, Mosyle,
and others. "B2B has
gone mainstream.
But the bigger
movement is that
B2B2C models are
flourishing,
Pe

B2B
rce

and the lines

nt

46%
are rapidly
ag
e

blurring."
ba

ed
s

on
20
6
res
po
nse
s

4
Inaugural Survey of
Latin American Startups Top Markets by Net Revenue "The keys for
Powered by Facebook Almost all startups are headquartered in the growth are solid
same country as their top market by revenue unit economics, a solid
Percentage based on 202 responses, where startups identified their no. 1 user acquisition strategy
STARTUP REVENUES market by revenue.
USA and operation, the team,
5% and capital to scale."
-Adalberto Flores, CEO,
Kueski

89%
Mexico Mexican startups serve diverse markets
Asia 19% in Latin America and globally.
2%

Secondary Markets point to growing

inter-region trade and expansion
Startups identified secondary markets based on revenue as
indicated by the arrows.

Colombia
7%

of the startups reported positive Peru

Brazil
net revenue growth for 2017-2018 6% 42%
Pe
rc

ta Brazilian startups
en

ge overwhelmingly serve the

ba Brazilian market with Argentina,
se
do Chile, Mexico, and USA distant
n1
71 r secondary markets.
esp o
nses

Uraguay

Moving in the Right Direction "We believe 2%

The number of startups that reported that the key is Chile

being customer centric. 9%

100%+ annual revenue growth has Argentina
increased for the past three years. Sometime this means 8%
sacrificing immediate
growth for a more long-
lasting growth." -Mariana
Castillo, Co-CEO,
Ben & Frank

5
 Inaugural Survey of
Latin American Startups
Health Info Tech Logistics Seed/Incubator Early Stage Expansion
Life Sciences Stage

HOT SECTORS
Startups responding to the survey are operating in some of the hottest funded sectors*
r Early Stage Expansion Crowdfunding E-commerce Marketplace Consumer/retail Adtech & Fintech
Stage Marketing
Fintech 23% SaaS 18%
Fintech was the No. 1 sector of VC Global and local VCs have invested
investment in Latin America from 2017- in 26 SaaS deals in the past two
il Adtech & 2018, with US$695mHealth invested across Saas Real Estate Agtech Services Edtech
Marketing
Fintech Info Tech Logistics years, according
Seed/Incubator to LAVCA
Early Stage Data
Expansion
Health Info Tech 161Logistics
deals, according Lifeto
Seed/Incubator LAVCA
Early Stage Data
Sciences Expansion Stage
Life Sciences Stage Marketplaces 14%
E-commerce 14% Marketplaces consistently receive
E-commerce is one of the longest Telecom- top VC investment
Software dollars,Security
Transportation with Clean Tech /
Edtech
running top sectors Crowdfunding Marketplace US$657m
for VC E-commerce Munications Adtech & in 2017-2018
invested
Consumer/retail Fintech Renewable Energy VC
Crowdfunding E-commerce investment,
Marketplace Adtech
according to LAVCA Data,
Consumer/retail & Marketing
across 42 deals, according to
Fintech
with 39 deals in the past Marketing
two years LAVCA Data
*Startups could indicate more than one sector.
Clean Tech /
Renewable Energy
Saas
VC
Real Estate
Health Health Info Tech
Life Sciences
Life Sciences
Agtech
Info Tech Logistics

Services
Saas
LogisticsSeed/Incubator

Edtech
Real Estate Media
Agtech&
Early Stage
Seed/Incubator Early
Entertainment
StageExpansion
Percentage Expansion
based
Biotechnology
on 207 responses
Stage Stage
Services Social Network
Edtech Legal Hardware Healthcare

Sectors & VC investment in agtech, edtech, and healthtech have grown 6X from
Startups
Crowdfunding E-commerce
Crowdfunding E-commerceUS$15m
Marketplace
Telecom-
inConsumer/retail
Marketplace 2016 US$104m
Adtech
Consumer/retail
Software
&
Adtech
Transportation
across
& Fintech 71 deals in 2018
FintechClean W /
NETech
Hardware Healthcare Marketing Security
Marketing
Telecom- Software to Watch
Transportation Security Munications
Clean Tech / Renewable Energy VC Spacetech
Munications agtechVC
Renewable Energy record rounds edtech
Bigtech healthtech
Agrofy (AR) Digital House (AR) Dr Consulta (BR)
Agrosmart (BR) Kinedu (MX) 1Doc3 (CO)
Saas Saas Real Estate
Real Estate Agtech Agtech (BR)Services Edtech Edtech
JetbovServices Crehana (PE) Health Higia
Water Info
(MX)Tech Logistics Seed/Incubato
Media & Biotechnology Social Network Legal Hardware Life SciencesGesto (BR)
Healthcare
Spacetech
Media & Biotechnology Social Network Legal Entertainment
Hardware Healthcare
Entertainment
Telecom-
Telecom- Software Transportation
Software Clean Tech
Transportation SecuritySecurity / Tech /
Clean
ater Munications
Munications Renewable Energy
Renewable EnergyVC VC Crowdfunding E-commerce Marketplace Consumer/reta
NE W 6
NEW Spacetech
record rounds Bigtech
Spacetech
record rounds Bigtech
Inaugural Survey of
Latin American Startups

T ?
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HOW ARE LATIN AMERICAN STARTUPS MAKING AN

FOCUS OF STARTUP
IM PAC
4% of
respondents
are B-Corps,
including:
Focused on
Profit Profit +
First Social/
55.9% Environ-
mental
MissionEqually Focused on Profit and a
Social/Environmental Mission
40.7% "Over 50% of
Argentines have never
Pe
rc

nt
paid with anything other
e

ag
e
ba than cash. Ualá's mission is
3.4%
se
do
n 20
4 resp onses Social/Environmental Mission First to change that. We want all
those clients that the banks
never wanted. And the
rest, too." -Pierpaolo
Barbieri, CEO, Ualá

69% 59% of respondents, including profit-first, said

they are measuring an impact indicator:

33% 16% 8% 8% 12%

18% 3%
Jobs Financial Environmental Access to Access to Affordable Affordable Other
Creation Inclusion Impact Education Healthcare Transportation Housing

Percentage based on 116 responses

%
Impact companies generate positive social and environmental impact for their geographies and communities, as well as potential for a financial return

n8
%
% l

7
8%
18 ta
%
%

io
16
33

ct men
69

3%
t
rta
e

po le

in ble
n

%
at to

hc o
ar
sio l
n

b
io
n

cia

12
g
on

da
tio

da
ss

ss
 I Inaugural Survey of
MOBILE FY
Latin American Startups
Latin America has the Powered by Facebook
Of the
third largest smartphone LatAmps startups
adoption globally, behind
MOBILE startu rong being
North America (no. 1) are st bile surveyed,
and Europe (no. 2). FIRST on moopment 124 are
Smartphone adoption devel mostly developing
in Latin America hit 61% (with for both
iOS and
in 2017 and is expected local eering Android
and
dev 13 are
to reach 76% by 2025, engin ) together for elopi
according to GSMA teams onlyAndrong
Intelligence. id
"The
iPhone has
Brazil was the fourth 4-5% market share
largest market for mobile in Brazil. You can buy
phones in 2017. At 138%, iPhones in Argentina,
smartphone penetration but they are prohibitively
in Brazil is already above 81% expensive. The Chinese
the global average of Mobile brands are also about
115%, according to a study by as a 3-4% by volume."
STARTUPS part
Fundação Getúlio Vargas. & MOBILE of the -- Guille Freire, CEO
solution Trocafone
DEVELOPMENT
Mexico and Brazil are
among Spotify's top four "Farmers have
14%
markets by volume of changed their mobile
Mobile
streams, according to The 7% -only behaviors. They are
Economist. Mexico City is Mobile in starting to use smartphones
Spotify's largest listener develop- to buy or sell products,
ment/No get credit or insurance, or
base, ahead of New York mobile
and London, according to "Mobile hire services like harvest or
is not just freights."
the Financial Times.
- Alejandro Larosa,
fundamental to
co-founder of Argentine
our business - it's agtech Agrofy
the way we do
business." - Luis
Garza, CEO,
Kinedu 8
 Saas Real Estate Agtech Services Edtech
Inaugural Survey of
Latin American Startups Telecom- Software Transportation Security Clean Tech /
Powered by Facebook Munications Renewable Energy VC
Telecom- Software Transportation Security Clean Tech /
Munications Renewable Energy VC
FRONTIER TECH Health Info Tech Logistics Seed/Incubator Early Stage
Expansion
Startups across Life Sciences
stage and sector are utilizing frontierMediatechnologies, Stage
& Biotechnologyaccording
Social Network to Legal
the responses
Hardware Healthca
from participating startups. Entertainment
Media &
Entertainment
Biotechnology Social Network Legal
73%
Hardwareare using
Healthcare
some form of
Crowdfunding E-commerce Marketplace Adtech &
Consumer/retailbig Fintech
Marketing
data, NEW
Spacetec
NEW machine
record rounds Bigtech
Drone/satellite development is learning, Spacetech
"We have record
Saas rounds RealBigtech
concentrated Estate Agtechprojects
in agtech Edtech
Services
developed or artificial Water
all the technology
intelligence "AR/VR is a
that the farmer needs
Water clear trend to make
to apply drones to
the furniture purchasing
E rotabucnI/deeS farm work." - Fabricio
scitsigoL hceT ofnI Telecom-
htlaeH Software Transportation Security Clean Tech /
Hertz, CEO, Horus Munications Renewable Energy VC process seamless.
secneicS efiL Startups from agtech The key challenge is to
s Seed/Incubator Early Stage
Aeronaves Expansion
Stage and fintech to digital understand the right timing
media and real and the right use for this
estate are building technology." - Philippe
liater/remusnoC eIoT
calptekdevelopment
raM ecremmoc-E is gnidnufdworC
Biotechnology Social Networkthe blockchain
on Cahuzac, Co-Founder &
Media & Legal Hardware Healthcare CEO, GAIA Design
ce Consumer/retail concentrated
Adtech & in
Fintech Entertainment
Marketing
agtech "We
hcetgA etatsE laeR saaS are using
secivreS NEW
virtual reality to
Edtech logistics/transport Spacetech
Services record rounds Bigtech show patients and
their relatives what it
E rotabucnI/deeS scitsigoL hceT ofnI htlaeH AR/VR development is like to live with each
cleantech secneicS efiL
-moceleT development is being applied pathology." - Gabriela
C ytiruceS noitatropsnarT erawtfoS Water
neR snoitacinuM to edtech and e-commerce, but Hernández Reza, Business
tion Security Clean Tech / also real estate and healthtech Development Manager,
Renewable Energy VC SalaUno
liater/remusnoC ecalptekraM ecremmoc-E gnidnufdworC
9
lageL krowteN laicoS ygolonhcetoiB & aideM
tnemniatretnE
work Legal Hardware Healthcare
Inaugural Survey of
Latin American Startups
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JOB CREATION

The 227 startups who responded have created 25,000+ current full-time jobs

Nubank, founded in 2013, is

one of the leading startup
jobs creators, with
Job creation is overwhelmingly in LatAm over 1,300

4 out of 5
95%
employees "We are
of respondents said and 400 optimistic about
of their full-time employees are based new job our business potential
in Latin America. openings as growth rates continue to
Percentage based on 222 responses
in 2019. accelerate and we see the first
signs of recovery in Brazil. We
have ambitious hiring plans
Average No. of Jobs in Brazil, as well as other
Each startup respondent with US$500k+ in funding contributed an countries like Mexico and
average
129 current full-time jobs Argentina." -David
Velez, CEO, Nubank

Bootstrapped startups and those with under US$500k in funding

contributed an average of
13-14
current full-time jobs
HARDEST
TALENT
TO RECRUIT:
Senior Engineers
C-Suite
Product/Design

10
 Inaugural Survey of
Latin American Startups
ER DIVERSITY "We've reached
Powered by Facebook
E NDed as having 50%+ full time gender parity not only
G defin fem at an aggregated level (all
& y is a le the company) but also in
S
P parit
em
pl
our management team. We
Ur o believe that mixed gender
teams produce better

29%
G T
de

ye
AR
performance." - Sebastian
en

es
of Valin, Founder & CEO,
ST

respondents said ComparaOnline

they've reached
gender parity or
greater in their
workforce
Percentage based on Startups with
219 responses
200+ employees
"It is not just who've reached gender
a number for us, parity include:
gender diversity is
something deeply rooted
in the values of the
Over 95% of company."
Hogaru's 900+ -Philippe Cahuzac,
employees are female. Co-Founder & CEO,
GAIA Design
The Colombian on-demand
cleaning service for small
businesses has made Startups with
their workforce full time <200 employees
employees, rather than who have reached
contract workers.
gender parity include:

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 Inaugural Survey of
TECH FYI
Latin American Startups
Mexico graduated over Powered by Facebook
113,000 engineers in 2015,
which was the eighth- Tech Teams Are Local
highest number globally LATIN 87% Startups overwhelmingly have their
(according to WEF)
AMERICAN of Mexican Startups Have Local
Engineering Teams in Mexico engineers based where they are
Argentina is the eighth TECH headquartered.
largest exporter of TALENT
computer services globally
(according to the WTO)

The number of local

developers is dramatically
88%
of Colombian Startups Have Local
increasing and developer Engineering Teams in Colombia
reputation scores
from countries like
Peru, Colombia, Chile,
Argentina, and Brazil 85%
of Peruvian Startups
90%
of Brazilian Startups Have Local
are consistently higher Have Local Engineering Engineering Teams in Brazil
than other developing Teams in Peru
regions (according to Stack
Overflow)

Women represent a
promising new IT talent
pool. Despite only 13.3%
of networking employees
in Latin America being
83%
of Argentinian Startups Have Local
female, 31% of Computer Engineering Teams in Argentina
Science and Engineering
majors are women
(according to IDC) 78%
of Chilean
Startups Have
Local Engineering
Teams in Chile

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 IT Ythat provides a company's workfor
Inaugural Survey of U
Qer prog am ce w
Latin American Startups
E E n
r ith
an
ow
Powered by Facebook E
Yployee-ow ne
rsh
ip
O
Ls an em
in
te
re
st
in

P
82%
i

EM
P)

th
SO

e
co
(E

m
UP
n

pa
pla

ny
hip

.
RT
ers
wn
STA
ko

of respondents

75%
stoc

offer an ESOP.
loyee

of
respondents who
An emp

ESOPs are not a requirement for VC funding,

but it's standard for VCs to ask for an ESOP plan offer an ESOP offer
with the company's first international fundraise. it to only
1/4
of employees.

Gunderson Dettmar Partner Brian Hutchings

15%
says secondary sales appear to be slightly
more common in of
Latin America "I think this
than in the US:
founders have
is because the cashed out via a
time to liquidity for a
secondary sale.
company is longer in Latin
America. While founders
and investors may exit a Secondary sales are
US startup in 5-7 years, an important way to
the journey for a LatAm provide liquidity for
startup can be 10 years founders and early
or more." employees.

13
5.0%
Inaugural Survey of 45.8%
78% 60%+ 34%
Latin American
0.0% Startups have have of startups
raised over reported local VC have raised capital
STARTUP FUNDING US$500k in and/or angel from both local and
5.0% reported total backing, pointing international investors*
funding across to a strong local Percentage based on 215 responses
(Reflects corporate and fund investors only)
multiple rounds investor
0.0% ecosystem
NOTABLE GLOBAL
INVESTORS TARGETING
LATIN AMERICAN TECH
5.0%
Accel Partners
Andreessen Horowitz
American Express Ventures
0.0%
21.7% 22.2% Delivery Hero
DST Global
Didi Chuxing

US$20m - US$100m
5.0% Founders Fund
less than US$500k

US$500k - US$5m

US$5m - US$20m
GIC
Naspers
PayPal
0.0% QED Investor

US$100m+
Qualcomm Ventures
Riverwood Capital

5.0% 8.5% Sequoia Capital

SoftBank
Tencent
1.9% Temasek
0.0% Visa Ventures
Percentage based on 212 responses Y Combinator

ROOWM
TO GRO 44% said international capital represents 5% or less of total funding
Percentage based on 208 responses

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Inaugural Survey of
Latin American Startups
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ACCESS TO INVESTORS
Startups have received back-to-back record VC funding in the
last 2 years, according to LAVCA Data
82% of respondents say they are
raising funds in the next
Percentage based on 208 responses
12 months
2011 $143
The No. 1 barrier to raising capital
2012 $387 cited by startups across the region is
Access to Investors
2013 $425 12
2014 $526 191 startup founders are
targeting an international exit via
2015 $594 Acquisition or IPO

2016 $500 2018 Highlighted International Exits

n  almart acquired Chilean delivery startup
W
Cornershop for US$225m in 2018
2017 $1,141 n  razilian payments company Stone Pagamentos
B
raised US$1.1b from Berkshire Hathaway, Ant

2018 $1,976 Financial, Madrone Partners and others in an IPO

on the Nasdaq in 2018
n  razilian rideshare giant 99 was acquired by Asia's
B
$0 $500 $1,000 $1,500 $2,000 Didi Chuxing in 2018 for a reported US$600m.
US$ Million

15
Inaugural Survey of
Latin American Startups
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ROLE OF INVESTORS IN LATIN AMERICAN STARTUPS

Respondents say investors have been most helpful for Strategic Advice and
Introductions to New Clients/Partners

Strategic advice 87%

Introductions to "We
new clients and/or
business partners
59% have been
lucky to have very
supportive investors. Some

44%
Raising follow-on are connectors, some have
investment helped us with strategy, and
some have helped us recruit
senior leadership. The key is that
Help expanding
into new markets 35% "Our
investors
they've been supporting us
both in the good times and
push our the bad. That is priceless."-
Help finding
key hires 34% management team
to achieve goals that
Adalberto Flores, CEO,
Kueski
create global impact."
- Renata Perina, Head of
Introductions to
potential acquirers 13% "One of the main
reasons for Liftit's
Business Development,
Infracommerce
"After
almost a
success is our investors. decade mentoring

2%
They have had a tremendous and investing in Mexican
Other
impact on Liftit traction and founders, I can finally say
access to capital. They've also that they have the support they
been a huge help with advice deserve. Our ecosystem is far from
Percentage based on 207 responses in challenging times." - Brian complete and challenges to scale
*Respondents could select multiple York, Co-Founder, LiftIt still remain, but opportunities
have never been greater and
capital is on its way."
- Federico Antoni, Co- Founder
& Managing Partner,
ALLVP 16
Inaugural Survey of
Latin American Startups
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TOP CHALLENGES TO STARTUP GROWTH

Latin American regulators are struggling to respond to the forces of change brought by
entrepreneurs and innovators

Banking/ Opening/
Labor Compliance Fintech Closing a New
Taxation Regulations Regulations Regulations Company

Primary Primary Secondary Secondary Secondary

Concern Concern Concern Concern Concern

Brazil

Primary Secondary Secondary Secondary

Concern Concern Concern Concern

Mexico
Taxatio
n and L
Regulat abor
ion wer
most pr e the
Primary Primary for start
essing c
oncerns
Concern Concern up resp
onden
across t
he regio ts
Colombia n

17
Inaugural Survey of
Latin American Startups
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SAVE THE DATE: LAVCA WEEK 2019

September 26 | New York, NY
LAVCA Fund managers, investors, leading entrepreneurs, and global tech
VC/TECH players are invited to LAVCA's Annual VC Investor Meeting in
PRODUCTS New York on September 26.

LatAm Venture Bulletin Latin American Startup Directory

A must-read roundup of startup deals and news on Tracks over 250 early stage companies that have
emerging technologies in Latin America, delivered received US$1m+ in funding.
to over 4,000+ investors, entrepreneurs, and
corporates bi-weekly.
Impact Reports
Access LAVCA's latest impact investing data,
LAVCA Industry Data & Analysis including Impact+Tech/VC Investing and the
Represents the most comprehensive and accurate Impact Investing Landscape in Latin America, a
source of regional industry data on PE/VC report created by LAVCA and ANDE.
investments available to date.
LAVCA Fund Manager Directory
Inside Latin America's Breakout Year in Tech & Annual VC Members Update
Based on LAVCA Industry Data, this 8-page report Directory of fund managers active in Latin America.
maps tech and VC investment activity, launched
annually at Riverwood's LTF
Top Women Investing in
Latin American Tech + Women to Watch
LAVCA Scorecard Short list of women actively investing in LatAm
Produced in collaboration with the EIU the LAVCA including individuals from VCs, accelerators, IIs,
Scorecard ranks the environment for private capital DFIs, Family Offices.
investment for 12 countries in Latin America.
LAVCA Startup Heatmap
Mapping: Global Investors in Created for a TechCrunch and Facebook program
Latin American Startups in Brazil, this report looks at regional trends in VC
Mapping of global investors committing capital and tech.
to startups in LatAm with breakouts for Asia,
corporates, US, and European investors.

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