"There is no greater sorrow than to recall happiness in times of misery." - Juan Rulfo
December 21, End Of Day
Quantum: Heading the movement towards urban electromobility in Latin America, Quantum is based in Cochabamba, Bolivia, and operates in the Mobility and Electric sectors. Their vision is to provide a comfortable, safe, and 100% electric transportation solution. They have achieved significant milestones with over 400 units sold across 5 countries. Their vehicles are not only 80% cheaper to operate than gasoline cars but can also be conveniently charged using a conventional wall plug. With a competitive price tag of 7500 USD, Quantum is revolutionizing the urban transportation landscape in the region. Get to know the case here.
Einsted: Einsted is making strides in the Biotech and Climate sectors with its innovative "Last-Mile Hydrogen" solution for industrial decarbonization. Their technology transforms methane into hydrogen, which is then reused for combustion, while carbon is fixed into graphene. This process is not only low in operating costs and environmentally friendly but also targets clients responsible for approximately 20% of global emissions. Einsted's on-site hydrogen production eliminates the need for transport, further reducing emissions. With a focus on efficiency and sustainability, Einsted is positioned to make a significant impact in reducing industrial carbon footprints. Dive deeper into the case here.
Coco: Bridging the digital gap, Coco offers an "Internet in a box" solution, striving to provide internet access to every community. Based in Monterrey, Mexico, they operate in the Internet and Telecommunications sectors. Their innovative approach has already connected over 10,000 people to the internet. With a remarkable average revenue growth of 26% QoQ, Coco's business model emphasizes accessibility, making it easy for communities to purchase and benefit from their services. Dive deeper into the case here.
Dive deeper into other fundraising firms in LatAm here.
The digital divide refers to the gap between those who have easy access to the internet and computers and those who do not. This divide is significant because it affects various aspects of life, including education, economic opportunities, and access to information. According to the World Bank, still less than 50% of LatAm population have access to fixed broadband connectivity.
Inclusive connectivity in households:
This divide affects households' ability to adapt to changes such as remote work and education, with those lacking ICT infrastructure and skills being more disadvantaged. Addressing this divide requires targeted policies to enhance digital access and literacy, particularly for underserved socio-economic groups and rural areas.
The labour markets and future of work:
The digital divide in labor markets, heightened by digitalization, signifies a growing disparity in job opportunities and skills requirements. Workers with access to digital tools and skills are better positioned for new job opportunities, while those without face risks of job displacement due to automation and a lack of digital literacy.
Equity and quality in education:
The digital divide impacts the proficiency in using digital tools and technology, thereby impacting learning and skill development. While digitalization offers advantages like innovative teaching methods and personalized learning, it can also widen educational gaps for students not adequately prepared or lacking access to technology. Addressing this divide is crucial, with schools playing a key role in ensuring equitable access to digital resources and training, especially for marginalized groups, and in preparing students for a digital-intensive future.
AI narrowing or widening the gap:
AI's rapid advancement risks widening the digital divide, particularly between urban and rural areas. Despite these challenges, there is optimism due to the region's growing tech industry. When appropriately implemented and regulated, AI has the potential to significantly narrow the technology gap by enhancing the quality of life and providing equitable access to advanced technological solutions, even in less developed areas.
Role of startups:
Startups, with their innovative approaches and technological solutions, have the potential to bridge the digital divide by developing affordable, user-friendly digital tools and services that cater to underserved populations - being it EdTechs or focus on connectivity. They can focus on creating localized content and applications that address specific community needs, thereby enhancing digital literacy and engagement. Furthermore, startups can collaborate with governments and NGOs to extend digital infrastructure and services to rural and marginalized areas, effectively narrowing the connectivity and skill gaps in these regions.
Mexico: Mexico is opening the first part of a $30 billion train line, the Maya Train, a key project of President Andrés Manuel López Obrador. The 1,500km line, designed to boost economic development in the south by connecting Cancún with other areas, has faced criticism for environmental damage, lack of transparency, and cost overruns. The project is part of López Obrador’s vision to prioritize the poorer south and reshape the state’s economic role, despite concerns about environmental impact and increased military involvement in the economy.
Ecuador: Ecuador's National Assembly has approved a tax reform proposed by President Daniel Noboa, featuring a tax amnesty for delinquent taxpayers and incentives to employ young workers. The reform aims to generate over $830 million and boost the economy, with a focus on reducing youth unemployment, which currently exceeds 50%. The amnesty includes waivers on interest and fines for outstanding tax debts, but excludes officials and their relatives, addressing concerns around tax delinquency among the wealthy, including Noboa's own family.
Argentina: Argentine President Javier Milei has signed a decree for economic reforms to combat the country's severe economic crisis, focusing on removing export limits and deregulating the economy. The reforms include plans to privatize state-owned companies, with Milei previously expressing support for privatizing the state-owned oil company YPF. Amidst austerity measures and a recent devaluation of the peso by over 50%, Milei's government also plans to increase taxes on grain exports, a crucial source of foreign currency, sparking criticism from farm groups. These actions have led to public protests in Buenos Aires, reflecting the challenges in addressing Argentina's economic issues and high poverty rates.
Wondering what an investor thinks while going through your deck? 👀
Nataraj Sindam, Investor at Incisive Ventures, shares his insights and feedback on a few Latin American pitch decks. Nataraj is also a Product Manager at Microsoft, host of the Startup Project podcast.
Watch here.
Thanks to the startups included:
Cirkula: eliminating food waste in LATAM restaurants and stores. Their innovative approach focuses on reducing food waste and increasing profits by selling surplus quality food.
Recylink: revolutionizing waste management with its tech-driven ecosystem. This B-Corporation, connects waste generators, transporters, and destinations, improving waste management communications.
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