Delving deeper into the world of early-stage investing in Latin America (LATAM) reveals a landscape full of potential, innovation, and growth. This episode (listen here) takes us into a conversation between two seasoned investors, Ivan Montoya and Alejandro Gálvez, both passionate about fostering the startup scene in the region. With their combined expertise and personal experiences, they explain their views on building a thriving investment ecosystem in LATAM.

Coming from diverse backgrounds, Ivan, a Colombian native who has embraced LATAM as a “Superangel” and Alex, a former lawyer turned angel investor, are important figures in shaping the entrepreneurial scenes. Alex has created one of the most popular Spanish speaking podcasts about technology in Latin America (listen here). He was inspired by the wonders of AI and blockchain driving him to dive into the investment scene and discover numerous opportunities. Currently, he is running a venture capital fund called 99 Startups. Ivan's journey as an angel investor, going back to 2019 with an impressive 40 investments in his portfolio, mirrors LATAM’s rise as a global investment hub.

Both Ivan and Alex shine a light on LATAM's flourishing sectors, from Fintech and e-commerce to logistics, predicting a transformative impact owing to the region's dynamic challenges and untapped potential. Fueling their optimism is the vibrant and young demographic, paving the way for change. Ivan and Alex compare the current state of Latin American tech ecosystem to the nascent days of Silicon Valley.

Throughout the last years, the investment scene has evolved a lot, for instance, we have seen an expanding ecosystem, more skillful founders and the implementation of global best practices.

During our conversation, one unifying theme emerges: the ever-evolving landscape of early-stage investing in LATAM. Both Ivan and Alex optimistically highlight the region’s maturation, growth trajectory, and adaptable nature. For those who are seeking to take part in early-stage investing in LATAM here are ten important tips to set you on the right path:

1. Education as the Foundation: There are unique nuances in LATAM countries, and thus it is important to understand cultural dynamics and regulatory intricacies. There are a lot of resources that offer insights into the region’s dynamic startup ecosystem (like our newsletter, subscribe here)

2. Connections: Establish bridges with established investors, experts, and founders already working in LATAM. Virtual events and social media are great resources for this.

3. Embrace Collaboration: Partner with local investors or funds for co-investments, unlocking access to insights, deals, and collaborative due diligence. Check out some companies that are raising in Latin America here.

4. Embrace Ecosystem Players: Engage with accelerators, incubators, and associations.

5. Diversification Matters: Just as in any investment strategy, diversify your portfolio across sectors, stages, and countries within LATAM. The less established markets can provide also amazing opportunities.

6. The Long Game: Investing in LATAM demands patience, aligning your perspective with the region's gradual yet promising growth.

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