The LatAm BOOM 🔑
2024 is kicking-off with a bang in LatAm and we are excited to tell you what we think, what we've read and what we have under the magnifying glass! Remember to subscribe as we revamp our newsletter!
Welcome to our newsletter Insights by Pygma where every two weeks you will receive everything you need to stay up to date on LatAm’s startup movement. This Newsletter is a great choice for those looking to understand the landscape better, get deal-flow, get the most relevant articles and books for startups “digested” or simply find useful tools to make your life easier navigating the Latino startup landscape.
TL;DR
$ Insights by Pygma now offers a paid subscription, join this amazing experience.
👩💼 CEO Perspective: Due Diligence on VC’s Uncovered: Get insights into what CEOs of startups are looking into, thinking or using!
🦄 Dealflow: We are open to hearing about the deals you are seeing in LatAm!
🇨🇴 Country Deep-Dive [Colombia]: With a foreword from Juan Dominguez from Jelt.
📖 Digest: We read it so you don’t have to. Venture Deals, a seminal book for VCs.
🔥 Bonus Piece on Naval: Get a thought provoking analysis on a note-worthy piece of info we found relevant for founders/investors in LatAm.
💰 Prompting VCs: What are VCs talking about this time?
🛠️ Tool insights: In this edition, we reviewed 2 AI Powered tools for investors.
That’s it, thanks for reading!
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CEO Perspective: Due Diligence on VCs Uncovered
Turning the Tables: Why Founders Must Conduct Due Diligence on VCs
When it comes to the relationship between founders and VCs, there's an important aspect of due diligence that often gets overlooked.
VCs meticulously analyze every move through the PPPP lens — People, Problem, Progress, and Price. Yet, what happens when the founder flips the board and examines the VC with equal rigor? Introducing the PPTV framework — a strategic blueprint for founders to conduct due diligence on VCs.
PPTV: The Founder’s Framework for Evaluating VCs
People: Take the time to get to know whom you're dealing with. Managers and partners of a VC firm are more than just funders—they can be mentors, advisors, and connectors. Evaluate their experience, track record, and reputation. Are they founder-friendly? Do they have expertise in your industry to help you navigate the challenges ahead?
Portfolio: Examine the VC's current portfolio to understand their investment thesis. Are there any potential conflicts of interest with competing startups? Or any opportunities for collaboration within their network? A supportive community among portfolio companies can provide a collaborative advantage and shared learning.
Value: Look beyond the check. It's crucial to determine the additional value a VC can bring. This can include industry contacts, recruitment support, strategic guidance, and access to a broader investor network. The right VC can accelerate your growth not just with capital, but also with resources and knowledge.
Terms: Pay attention to the details. While standard terms are expected, be cautious of onerous conditions that could hinder future fundraising or the strategic direction of your startup. Are the terms fair and balanced, or do they indicate a "shark" looking for a quick win at the founder's expense?
A Mutual Exploration
Venturing into a partnership with a VC is a mutual journey. Just as they assess your startup's potential through the PPPP framework, you owe it to your venture to scrutinize them through PPTV. It's a dialogue, not a monologue. It’s about alignment, not just agreement.
Call to Arms: Founders, Be Diligent
Founders, I urge you to wield the PPTV framework with intent. It’s a compass to navigate the venture capital seas — a means to discern allies from adversaries, champions from charlatans. Your startup's future hinges on these alliances; choose them with the same precision with which they choose you.
A Bonus From Others Thoughts
I welcome your insights on this framework. Has it resonated with your experiences? Could it change how you approach your next funding round? The floor is yours — let’s craft a narrative where founders are empowered to make informed decisions about their investors.
Deal-flow, you asked here it is!
Do you want a deal from your portfolio or your own startup to have a shoutout in this section?
Colombia 🇨🇴 - Country Deep Dive
Foreword by Juan Dominguez from Jelt
There are exciting things happening in the Colombian startup ecosystem right now.
While it’s still true that the Colombian (and overall LATAM) ecosystem is still a bit behind other more developed ecosystems, what that means for entrepreneurs is that there’s a possibility to be pioneers of development for our region. We have the luxury of being part of a select group of people that live at a time of change, which gives us a massive opportunity to innovate and have great impact in the future of our countries.
What’s also exciting is that the world is noticing this, and there’s a clear increase in interest in the region from VCs, corporate partners, and other kinds of players of the ecosystem. This is clear by the vibrance of the startup world, the events that are happening, and the general momentum that the whole region is gathering. 2024 is shaping up to be a great year for LATAM startups.
Colombia is not only a beautiful place to be, put it also holds great events and hot deals coming up. With great advancement and positioning from Bogotá, Medellin, Cali and some Caribbean cities, the startup landscape keeps heating up.
The 2 unicorns we have Rappi & Habi, have given much dynamism to the startup scene, with social mobility, multiplier effects and new investment as the spearhead, the ripples of this two great companies will keep reverberating for the coming years.
Forbes also did their yearly roundup of the top 100 companies which you can check-out here.
Events coming up:
VC Week: May 14,15,16 & 17